The Canadian government has introduced new measures to support low-income families struggling with rising grocery costs. Prime Minister Mark Carney announced these initiatives during a visit to a grocery store in Ottawa, alongside Finance Minister François-Philippe Champagne.
Enhanced GST Credit for Low-Income Families
The government will increase the Goods and Services Tax (GST) credit by 25% for the next five years. This boost will benefit approximately 12 million Canadians. Starting in June, there will also be a special one-time payment, equivalent to about half of the annual credit value.
Specific Benefits for Low-Income Individuals and Families
- Single individuals: The annual GST credit will rise from $540 to $950 this year, then reduce to $700 for the next four years.
- Families with two children: The credit will increase from $1,100 to $1,890 this year, followed by $1,400 for the subsequent four years.
Addressing Food Insecurity
Statistics reveal a pressing need for financial assistance. Last year, Food Banks Canada reported that nearly 2.2 million Canadians used food banks monthly. Currently, 25% of households face food insecurity, while 50% of Canadians are at risk of relying on food banks.
Financial Implications
The enhancement of the GST credit will cost the Canadian treasury approximately $3.1 billion this year and an additional $1.3 billion next year. Experts assert that targeted income benefits, like the GST credit, are among the most effective ways to assist low-income Canadians quickly and predictably.
Additional Measures to Improve Food Security
To further enhance local food production, the government announced that farmers can now deduct the total cost of greenhouses purchased from November 4, 2025, which are to be used by 2030. This initiative aims to bolster domestic food supplies and investments in agricultural production.
Local Food Infrastructure Support
Ottawa will allocate an additional $20 million to the Local Food Infrastructure Fund. This funding is intended to help food banks and other local organizations provide nutritious food to families in need.
Political Context and Responses
This announcement coincided with the opening of the parliamentary session. The rising cost of living is a significant concern for many Canadians. The Conservative Party has criticized the government for not doing enough to help families amidst this crisis and is demanding lower taxes on farmers and food processors.
Meanwhile, the New Democratic Party (NDP) has welcomed the government’s steps but has pushed for a complete removal of the GST on food to further alleviate financial pressures.
Prime Minister Carney dismissed claims that these measures are politically motivated, asserting that they are fundamentally about addressing the cost of living issues affecting millions of Canadians. He emphasized that more measures will follow to improve affordability.
In his press conference, Carney acknowledged that while economic plans are in progress, patience is necessary for tangible results to emerge in daily life. He remains committed to providing financial relief to low-income families during this challenging period.
