Prime Minister Mark Carney shared a set of affordability initiatives on Monday aimed at assisting Canadian families facing challenges with the increasing cost of living.
The main feature of Monday’s announcement is the Canada Groceries and Essentials Benefit, which Carney stated will enhance what families and individuals get through their GST rebate over the next five years.
“Canada’s new government is acting today to provide a boost to those Canadian families who most need one, while creating a bridge to longer-term food security and affordability,” Carney said in Nepean, Ont., on Monday.
The prime minister explained that his government is utilizing the GST rebate meant for Canadians with low and moderate incomes, as groceries and other essentials take up a larger part of their family budgets.
In its first year, the benefit will provide low- and modest-income Canadians eligible for the GST rebate a one-time increase that raises the $1,100 a family of four currently receives annually to $1,890 and lifts the $540 an individual gets to $950.
Starting next year and continuing for four years, the GST rebate will rise by 25 percent, meaning a family of four will receive up to $1,400 each year, while an individual will get around $700 annually.
“The rise in food prices means that a lot of those Canadians need more support right now,” Carney said.
“This strategy will include measures to implement unit price labeling so Canada can compare easily in this era of ‘shrinkflation,’ as well as support for the work of the Competition Bureau in monitoring and enforcing competition in our market,” he said.
The strategy will also include efforts focused on reducing food insecurity throughout Canada’s North.
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Tackling food inflation
To help lower grocery prices, which have been climbing faster than inflation rates, Carney mentioned he would allocate $500 million from the government’s Strategic Response Fund to assist food suppliers in “expanding capacity and increasing productivity.” This allows food businesses looking to invest in improvements that strengthen their supply chains to apply for some funding assistance from the program. Carney also introduced a $150-million Food Security Fund aimed at helping small- and medium-sized enterprises expand greenhouses and abattoirs while reinforcing food supply chains. An immediate action for producers includes allowing companies to fully write off greenhouses purchased on or after Nov. 4, 2025, provided they start being used before 2030. “This measure supports increased domestic supply and investment in food production over the medium term,” a government statement said. The prime minister additionally announced his government would allocate $20 million towards the Local Food Infrastructure Fund to relieve some pressure on food banks. “This will help boost community food programs, helping them deliver more nutritious food for families in need,” he said. Alongside these measures, Carney mentioned that his government is formulating a National Food Security Strategy aimed at bolstering food production as well as improving access to affordable healthy options.“This strategy will include measures to implement unit price labeling so Canada can compare easily in this era of ‘shrinkflation,’ as well as support for the work of the Competition Bureau in monitoring and enforcing competition in our market,” he said.
The strategy will also include efforts focused on reducing food insecurity throughout Canada’s North.
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