January 26, 2026
RED FM News Desk
As Parliament returned from its winter break on Monday, Prime Minister Mark Carney announced a significant expansion of the GST credit, rebranding the affordability measure as the “Canada Groceries and Essentials Benefit.” The move aims to provide immediate financial relief to millions of citizens struggling with a 5% year-over-year spike in food prices, with staples like beef and coffee seeing even more dramatic increases.
The core of the announcement involves a dual-layered boost to quarterly GST payments. Starting this July, eligible Canadians will see a 25% increase in their credits for the next five years. Additionally, the government is issuing a one-time top-up this year worth 50% of the credit. Under this new structure, a family of four can expect to receive up to $1,890 this year, a sharp increase from the current $1,100, while a single individual could receive up to $950.
The federal government estimates that more than 12 million Canadians will be impacted by the measure. However, because the benefit was not included in last fall’s budget, it has already drawn sharp criticism from the Opposition. Conservative House Leader Andrew Scheer dismissed the move as a “recycled Trudeau-era policy,” arguing that the government should focus on permanently removing taxes on food production and ending inflationary spending rather than “giving Canadians their own money back.”
Beyond direct cash transfers, the Prime Minister pledged over $650 million toward stabilizing the food supply chain. This includes $500 million for major food suppliers to boost productivity and $150 million for a new Food Security Fund tailored for small- and medium-sized businesses. An additional $20 million was earmarked for local food infrastructure to support food banks and community organizations.
The government also intends to launch a National Food Security Strategy, which includes a mandate for “unit price labelling.” This system will require retailers to show the cost of products per standard measurement, a tactic designed to help consumers navigate “shrinkflation” by making it easier to compare the value of different brands and package sizes.
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