The New Canada Groceries and Essentials Benefit
Background:
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. The biggest payoffs in our plan will take time. However, we recognise that many Canadians are feeling the pressures of everyday expenses and need relief right now.
Affordability pressures—especially those related to food—require immediate support for Canadians. To support those most affected by the rising price of food, the government is proposing the new Canada Groceries and Essentials Benefit to help more than 12 million low- and modest-income Canadians afford day-to-day essentials, starting in the spring of 2026 (subject to Royal Assent).
The Canada Groceries and Essentials Benefit, will be indexed to inflation, and builds on the existing Goods and Services Tax (GST) Credit and provide $11.7 billion in additional support over six years by:
- providing a one-time top-up payment to be paid as early as possible this spring and no later than June 2026 (subject to Royal Assent)—equal to a 50% increase in the annual 2025-26 value of the GST Credit. This would deliver $3.1 billion in immediate assistance to individuals and families who currently get the GST Credit.
- increasing the value of the Canada Groceries and Essentials Benefit by 25% for five years starting in July 2026 (subject to Royal Assent). This increase would deliver $8.6 billion in additional support over the 2026-27 to 2030-31 period, including to 500,000 new individuals and families.
Benefit amounts are illustrative, and do not reflect price indexation. Benefit years (July-June) are shown and top-up would be paid as early as possible in the spring of 2026 (no later than June, subject to Royal Assent).
The chart shows the annual value of the Canada Groceries and Essentials Benefit from 2022–23 to 2030–31.
From 2022–23 to 2025–26, the benefit remains relatively stable at about $1,086 per year, reflecting the existing benefit level.
In 2026–27, the benefit increases significantly. This increase includes:
• a 25% increase for five years, adding approximately $272, and
• a one-time 50% top-up, adding approximately $533.
As a result, the total benefit peaks at just under $1,900 in 2026–27.
After the one-time top-up ends, the benefit decreases but remains higher than the original level. From 2027–28 to 2030–31, the benefit stabilizes at approximately $1,350 per year, reflecting the ongoing 25% increase.
Overall, the chart illustrates a temporary spike in 2026–27 due to the one-time top-up, followed by a higher benefit compared to the pre-2026–27 level.
Taken together, these measures would provide up to an additional $402 to a single individual without children, $527 to a couple, and $805 to a couple with two children. At these levels, Canada’s new government will be offsetting grocery cost increases beyond overall inflation since the pandemic.
After the one-time payment is made in the spring of 2026 (subject to Royal Assent), eligible families and individuals in Canada will receive the enriched regular payments under the Canada Groceries and Essentials Benefit as of July 2026 (subject to Royal Assent). The benefit will be paid quarterly, at the start of the quarter, to permit timely access to the funds to help families with day-to-day expenses. These amounts are additional to existing benefits such as the Canada Child Benefit, the Canada Disability Benefit, and the Guaranteed Income Supplement.
Under the proposed changes:
- A single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026-27 benefit year (total increase of $402). In total, they would receive $950 for the 2026-27 benefit year (including the top-up).
- A couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for the 2026-27 benefit year (total increase of $805). In total, they would receive $1,890 for the 2026-27 benefit year (including the top-up).
Benefit amounts are illustrative, and do not reflect price indexation. Benefit years (July-June) are shown and top-up would be paid as early as possible in the spring of 2026 (no later than June, subject to Royal Assent).
Enabling legislation for the proposed one-time top-up and further five-year increase to the Canada Groceries and Essentials Benefit will be tabled in the coming weeks. The proposed one-time top-up amount would be paid to all current recipients as a one-time, lump-sum payment as early as possible in the spring of 2026 (no later than June) based on eligibility to the GST Credit in January 2026, pending Parliamentary approval and Royal Assent of enabling legislation. The new Canada Groceries and Essentials Benefit would continue to be delivered quarterly in July, October, January and April.
Recipients would not need to apply for the additional payments, but should file their 2024 tax return if they have not done so already to be able to receive the top-up, and must file their 2025 tax return to receive the increased Canada Groceries and Essentials Benefit payments as of July 2026.
It is estimated that 12.6 million individuals and families would benefit from the new Canada Groceries and Essentials Benefit, representing a material support to Canadians that need it the most, while the government’s plan to build the strongest economy in the G7 takes effect.
Information taken from the Government of Canada website: [link]
