Canadians are still paying pandemic-era prices at the grocery store, and Ottawa is quietly acknowledging that reality.
Ahead of Parliament’s return, Prime Minister Mark Carney announced a 25 per cent increase to the GST rebate, spread over the next five years, under a new program called the Canada Groceries and Essentials Benefit. The change begins immediately, with a one-time payment arriving this year.
For everyday households, this isn’t an abstract policy. It’s money that will land directly in bank accounts at a time when grocery bills remain stubbornly high.
Under the plan, GST rebate payments will rise gradually over five years, with a one-time top-up this year worth 50 per cent of the annual credit. More than 12 million Canadians are expected to benefit.
A family of four that currently receives about $1,100 a year would see support rise to roughly $1,890 in the first year, followed by about $1,400 annually for the next four years. No application is required. If you qualify, the payment arrives automatically.
The timing matters. While inflation has eased in headline numbers, food prices never fully came down after the pandemic. Grocery costs became embedded into household budgets, and many families are still adjusting.
Rather than attempting to force prices lower, Ottawa is choosing to offset the pressure by sending cash directly to households and letting them decide how best to use it.
For most Canadians, the extra money won’t erase higher grocery prices, but it does provide breathing room. It can help cover food, utilities, transportation, or reduce reliance on credit as everyday expenses continue to stretch household finances.
The bigger signal is clear. Direct cash support is becoming a preferred tool as cost-of-living pressures linger longer than expected. Grocery prices may not be falling anytime soon, but for those who qualify, more support is coming, starting this year when it’s needed most.