Canada Approves New Groceries And Essentials Benefit

Department of Finance Canada

The global landscape is rapidly changing, leaving economies, businesses, and workers under a cloud of uncertainty. In response, Canada's new government is focused on what we can control: building a stronger economy to make life more affordable for Canadians.

While the government's plan to build the strongest economy in the G7 takes effect, affordability pressures-especially those related to food-require immediate support for Canadians. Today, following Parliament's expedited passage of Bill C-19, the Canada Groceries and Essentials Benefit Act, this legislation received Royal Assent to deliver that support. The new Canada Groceries and Essentials Benefit will provide relief to more than 12 million low- and modest-income Canadians, helping them afford day-to-day essentials starting in the spring of 2026.

Bill C-19 will:

  • provide a one-time top-up payment to be paid as early as possible this spring-equal to a 50% increase in the annual 2025-26 value of the GST Credit. This will deliver $3.1 billion in immediate assistance to 12 million Canadians who currently get the GST Credit.
  • increase the value of the Canada Groceries and Essentials Benefit by 25% for five years starting in July 2026. This increase will deliver $8.6 billion in additional support over the 2026-27 to 2030-31 period, including to 500,000 additional individuals and families.

Combined, these measures mean a family of four will receive up to $1,890 this year, and about $1,400 annually for the next four years; and a single person will receive up to $950 this year, and about $700 annually for the next four years.

Since 2020, food prices have risen faster than overall inflation, costing the average household $782. With this support, Canada's new government will be offsetting grocery cost increases beyond overall inflation since the pandemic.

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