You don’t need us to tell you that food prices are high.
Canadians have been experiencing price hikes for years, with grocery costs increasing by over 30 percent since 2020, according to the latest data from Statistics Canada.
What questions do you have about the new federal grocery rebate? Send an email to ask@cbc. ca.
Last week, Prime Minister Mark Carney introduced a set of affordability measures aimed at helping Canadian families who are finding it hard to manage the rising cost of living. The main initiative is called the Canada Groceries and Essentials Benefit.
We now have an idea of what this will cost. On Monday, the parliamentary budget officer revealed that the federal government’s plan to enhance the GST credit and provide a one-time payment to Canadians will amount to an estimated $12.4 billion over five years.
The PBO report suggests that this one-time payment will exceed $3 billion in its first year, while annual increases will range from $1.7 billion to $1.9 billion each year until 2031.
This benefit aims to provide low- and modest-income Canadians eligible for the GST rebate with a one-time increase that raises what a family of four currently receives annually from $1,100 up to $1,890 and boosts an individual’s amount from $540 to $950.
WATCH | How will the grocery rebate work?:
How will the federal GST grocery rebate work?
Federal politicians traveled to Mississauga on Friday to promote their grocery rebates announced earlier by Prime Minister Mark Carney. CBC’s Naama Weingarten breaks down how the rebate functions.
Beginning in 2026-27 and continuing for five years after that, the GST rebate will see a boost of 25 percent, meaning a family of four could receive up to $1,400 each year while individuals would get around $700 annually.
The current GST credit is paid out every three months and focuses on assisting families with lower incomes. It’s expected that over 12 million Canadians will qualify for this new benefit.
“For Canadians who are being pinched, particularly Canadians at the lower end of the income scale, this is going to be a dramatic help,” Michael von Massow, a food economics professor at the University of Guelph, told .
“I think it will let some people eat more, and it will probably let some people increase the quality of what they’re eating; in many cases for those at lower income levels, it means they won’t have to choose between paying their cellphone bill or buying groceries that week.”
Federal grocery rebate will only worsen ‘unaffordability crisis,’ Lantsman saysMP Melissa Lantsman pointed out that Liberal government’s Canada Groceries and Essentials Benefit “is going to add more to grocery prices; add more housing costs; contribute further into our unaffordability crisis.” On Monday, a report released by Parliamentary Budget Office estimated that topping up GST credits would cost about $12.4 billion over five years.
“No amount of small rebates will help most families struggling with these grocery prices.”
Despite her criticisms regarding Canada Groceries and Essentials Benefit , Lantsman stood in Parliament on Monday pledging her party’s commitment alongside Liberals in speeding up legislation required for making such rebates possible-Bill C-19.
According Food Banks Canada , around one quarter (about 25%)of Canadian households live without secure access due financial constraints. Roughly twenty percent (20%)of visitors using food banks hold jobs.
One way we might observe relief from price hikes may come through wage growth ; von Massow noted while certain wages began responding inflation recently , overall minimum wages haven’t seen “significant change” thus far.
“Those feeling greatest pressure tend towards lower-income brackets so targeting support like [the rebate] makes sense,” he explained.WATCH | ‘I’d like To Believe It,’ Finance Minister Says After Conservatives Fast Track Grocery Rebate :
‘I’d Like To Believe It,’ Finance Minister Says After Conservatives Fast Track Grocery Rebate
On Monday , Conservatives passed motion within House Commons enabling them fast-track process facilitating implementation of Canada Groceries & Essentials Benefit intended move forward Bill C-19 clearing pathway needed completion before Wednesday deadline. “Some queries directed toward me remain perplexing considering commitments made” expressed Finance Minister François-Philippe Champagne following second reading related bill.
Finance Minister François-Philippe Champagne hopes Conservative members uphold promises concerning swift passage proposed legislation.
“I’d like believe it but perhaps I’ve been here too long realizing talk doesn’t equate action -what truly matters citizens-is actual steps taken,” stated Champagne reporters ahead question period occurring yesterday.
“I’m open participating committee meeting later today if desire progresses needed timeline.”
How will the federal GST grocery rebate work?
Federal politicians traveled to Mississauga on Friday to promote their grocery rebates announced earlier by Prime Minister Mark Carney. CBC’s Naama Weingarten breaks down how the rebate functions.
Beginning in 2026-27 and continuing for five years after that, the GST rebate will see a boost of 25 percent, meaning a family of four could receive up to $1,400 each year while individuals would get around $700 annually.
The current GST credit is paid out every three months and focuses on assisting families with lower incomes. It’s expected that over 12 million Canadians will qualify for this new benefit.
“For Canadians who are being pinched, particularly Canadians at the lower end of the income scale, this is going to be a dramatic help,” Michael von Massow, a food economics professor at the University of Guelph, told .
“I think it will let some people eat more, and it will probably let some people increase the quality of what they’re eating; in many cases for those at lower income levels, it means they won’t have to choose between paying their cellphone bill or buying groceries that week.”
Conservatives Aim To Accelerate C-19
Conservative Leader Pierre Poilievre has previously stated his MPs would back this measure despite labeling it as a “Band-Aid solution.” Speaking in Ottawa on Monday, deputy Conservative leader Melissa Lantsman commented that while she appreciates efforts like these, they don’t adequately address rising prices themselves. “Food prices are out of control and they’re not going down,” Lantsman remarked. WATCH | Conservatives say measure will worsen ‘unaffordability crisis’:
Federal grocery rebate will only worsen ‘unaffordability crisis,’ Lantsman saysMP Melissa Lantsman pointed out that Liberal government’s Canada Groceries and Essentials Benefit “is going to add more to grocery prices; add more housing costs; contribute further into our unaffordability crisis.” On Monday, a report released by Parliamentary Budget Office estimated that topping up GST credits would cost about $12.4 billion over five years.
“No amount of small rebates will help most families struggling with these grocery prices.”
Despite her criticisms regarding Canada Groceries and Essentials Benefit , Lantsman stood in Parliament on Monday pledging her party’s commitment alongside Liberals in speeding up legislation required for making such rebates possible-Bill C-19.
According Food Banks Canada , around one quarter (about 25%)of Canadian households live without secure access due financial constraints. Roughly twenty percent (20%)of visitors using food banks hold jobs.
One way we might observe relief from price hikes may come through wage growth ; von Massow noted while certain wages began responding inflation recently , overall minimum wages haven’t seen “significant change” thus far.
“Those feeling greatest pressure tend towards lower-income brackets so targeting support like [the rebate] makes sense,” he explained.WATCH | ‘I’d like To Believe It,’ Finance Minister Says After Conservatives Fast Track Grocery Rebate :
‘I’d Like To Believe It,’ Finance Minister Says After Conservatives Fast Track Grocery RebateSource link
