Ottawa announces new Canada Groceries and Essentials Benefit

January 30, 2026

RED FM News Desk

The federal government is proposing a new Canada Groceries and Essentials Benefit aimed at helping low and modest-income Canadians cope with rising food costs.

The announcement was highlighted Thursday in Mississauga by Minister Rechie Valdez alongside Mississauga, Erin Mills MP Iqra Khalid. If approved, the benefit would support more than 12 million Canadians, including about five million in Ontario, starting in spring 2026.

The new Canada Groceries and Essentials Benefit would:

  • Provide 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.
  • Increase 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.

The government also announced additional measures to address food insecurity and supply-chain pressures, including new funding for businesses, food producers, and food banks, as well as plans to develop a National Food Security Strategy.