What’s the Canada Groceries and Essentials Benefit?

Does it feel like the groceries get more expensive almost every time you go to the store? You're not dreaming. In 2025, beef prices climbed 17%, lettuce grew 15%, and coffee surged 30%. As of December, the average Canadian grocery bill was up by about 5% overall. And that's not counting other household essentials, which have been getting more expensive, too.

With numbers like these, it's no wonder affordability is top of mind for many Canadians right now. To take some of the pressure off Canadians, the federal government is helping make food and other essentials more affordable and to improve national food security.

But what does this government announcement really mean for you—and your wallet? Here, we break things down.

What are the new government affordability measures?

On January 26, 2026, Prime Minister Mark Carney introduced new affordability measures focusing on groceries and essentials. There are two components to the announcement: an increase of the Canada Groceries and Essentials Benefit (CGEB), formerly the GST/HST Credit, to help lower-income Canadians, and measures targeted at bigger-picture food supply and distribution issues.

What is the Canada Groceries and Essentials Benefit?

The Canada Groceries and Essentials Benefit will replace and build on the GST/HST Credit. Like the GST/HST credit, the new benefit will provide eligible Canadians with a quarterly rebate to help cover the cost of living. Previously, a couple with two children could receive up to $1,066 under the outgoing GST rebate program, depending on their household income. The CGEB will increase those payments:

• Maximum payments will increase by 25% per year for five years, starting in July 2026.
• Eligible recipients will get a one-time bonus payment this spring, no later than June 2026, that is equal to 50% of the annual value of the 2025–26 GST credit.

With these increases, that same household with two adults and two kids could receive up to $1,890 in 2026 through the CGEB (including the top-up). Upcoming payment dates are:

• April 2, 2026 (no increase)
• July 3, 2026 (first increased payment)
• October 5, 2026

If your family qualifies for the CGEB, you will automatically receive the payments once you've filed your taxes. (That's unless you're a new resident, in which case you may need to submit a special form.) 

To receive payments more quickly, ensure you're set up for direct deposit. You can do this via your CRA My Account. And be sure to file your income tax return on time so that potential payments aren't delayed.

What else is the government doing to help with food prices?

The global food supply chain is complicated, and many factors go into the price tags you see in the store. Bad weather in an important growing region or higher transportation costs can snowball through the global supply chain all the way to the grocery store shelves.

Even with locally grown food, prices can escalate quickly, with costs for everything from labour to water to infrastructure affecting what we eventually pay in the store.

The government has announced a range of measures it says are aimed at “tackling food insecurity, supporting producers, and strengthening supply chains” by addressing root causes, including:

• Allocating $500 million to address supply chain disruptions, so that costs won't be passed to shoppers
• Earmarking $150 million toward supporting food security
• Allowing food businesses to write off greenhouse buildings to facilitate more produce being grown in Canada
• Directing $20 million toward food banks and other organizations that help Canadians in need access nutritious food
• Developing a National Food Security Strategy that will support food affordability and access through initiatives such as requiring unit price labelling and oversight of grocery prices by the Competition Bureau

How will the governments new affordability measures affect you?

The government's announcement shows it's trying to tackle affordability in two ways: through immediate relief, and through longer-term, systemic improvements.

Canadians who are eligible for the Canada Groceries and Essentials Benefit will see some relief starting on July 3, 2026, when the first higher payment comes through. The rest of Canada will have to wait and see whether strategies and the overall economic plan ultimately bring down prices at the grocery store.

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