Canadians could soon get more money from the government to offset grocery costs through a new benefit.
On Monday, Prime Minister Mark Carney unveiled the Canada Groceries and Essentials Benefit, which aims to offset skyrocketing food costs for low-income Canadians.
According to Canada’s Department of Finance, the new benefit will be indexed to inflation and builds on the existing GST Credit, providing $11.7 billion in additional support over six years.
“This will deliver hundreds of dollars more into the bank accounts of more than 12 million Canadians,” stated Carney at the announcement in Ottawa on Monday.
Canada is strongest when we take of each other. That’s why we created the new Canada Groceries and Essentials Benefit — to help more than 12 million Canadians with lower incomes put good food on the table. pic.twitter.com/OVMEmFspUr
— Mark Carney (@MarkJCarney) January 28, 2026
The federal government shared more details about the new benefit, including the two ways it aims to offset food costs and when Canadians can expect the extra cash in their bank accounts.
The first measure is providing a one-time top-up payment equal to a 50 per cent increase in the annual 2025 to 2026 value of the GST credit. This is to be paid as early as possible this spring, and no later than June 2026, but the government does note that it’s still subject to Royal Assent.
The second move is increasing the value of the Canada Groceries and Essentials Benefit by 25 per cent for five years, starting in July 2026 (also subject to Royal Assent).
“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,” stated the Department of Finance. “At these levels, Canada’s new government will be offsetting grocery cost increases beyond overall inflation since the pandemic.”
Once the one-time top-up payment is made this spring, eligible families and individuals will get the regular payments under the Canada Groceries and Essentials Benefit as of July 2026 (subject to Royal Assent).
The benefit will be paid quarterly and will be in addition to other existing benefits like the Canada Child Benefit.
How much could you get from the Canada Groceries and Essentials Benefit?
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The government gave examples of how much you could receive depending on your family type and income.
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 to 2027 benefit year (total increase of $402). In total, they would receive $950 for the 2026 to 2027 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 to 2027 benefit year (total increase of $805). In total, they would receive $1,890 for the 2026 to 2027 benefit year (including the top-up).
If you’re eligible for the proposed measure, you won’t need to apply for additional payments.
However, you should file your 2024 tax return (if you haven’t already) to be able to receive the top-up. You’ll also need to file your 2025 tax return to get the increased Canada Groceries and Essentials Benefit payments as of July 2026.
The legislation for the proposed one-time top-up and the five-year increase to the Canada Groceries and Essentials Benefit is set to be tabled in the coming weeks. The federal government expects it will receive Royal Assent by March 31.