The Carney government has introduced a series of new measures aimed at making life more affordable for low-income Canadians facing high grocery prices and inflation. Prime Minister Mark Carney announced on Monday, January 26, 2026, that the federal government is rebranding the Goods and Services Tax (GST) credit as the “Canada Groceries and Essentials Benefit.” Under this new plan, quarterly credit payments will see a 25% increase over the next five years, starting this July.
To provide immediate relief, the government will also issue a one-time payment this June equivalent to 50% of the annual credit. According to federal estimates, these combined increases mean that an eligible family of four will receive up to $1,890 this year, compared to the previous $1,100. Similarly, a single individual can expect to receive up to $950 this year, up from approximately $540.
The Prime Minister made the announcement at an Ottawa grocery store as Members of Parliament returned to the House of Commons after the winter break. He emphasized that the cost of essentials has been “too high for too long” and noted that the benefit is intended to help more than 12 million Canadians. This move comes alongside other recent affordability measures, including middle-class tax cuts and the removal of the federal consumer carbon tax earlier this year.
