Minister Valdez highlights the new Canada Groceries and Essentials Benefit

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Minister Valdez highlights the new Canada Groceries and Essentials Benefit

Canada NewsWire

MISSISSAUGA, ON, Jan. 30, 2026 /CNW/ - The global landscape is rapidly changing, leaving economies, businesses, and workers under a cloud of uncertainty. In response, Canada's new government is focused on what we can control: building a stronger economy to make life more affordable for Canadians. Affordability pressures—especially those related to food—require immediate support for Canadians.

Today in Mississauga, the Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism) and Iqra Khalid, Member of Parliament for Mississauga—Erin Mills, Ontario, visited Iqbal Foods to highlight how the government is working to put more money back in the pockets of those most affected by the rising price of food, and to tackle food insecurity across a range of fronts.

As announced on January 26 by the Prime Minister, the federal government is proposing the new Canada Groceries and Essentials Benefit to help more than 12 million low- and modest-income Canadians afford day-to-day essentials, including around 5 million 1 in Ontario, starting in the spring of 2026 (subject to Royal Assent).

The new Canada Groceries and Essentials Benefit would:

  • provide a one-time top-up payment to be paid as early as possible this spring and no later than June 2026 (subject to Royal Assent)—equal to a 50% increase in the annual 2025-26 value of the GST Credit. This would deliver $3.1 billion in immediate assistance to individuals and families who currently get the GST Credit.
  • increase the value of the Canada Groceries and Essentials Benefit by 25% for five years starting in July 2026 (subject to Royal Assent). This increase would deliver $8.6 billion in additional support over the 2026-27 to 2030-31 period, including to 500,000 new individuals and families.

Taken together, these measures would provide up to an additional $402 to a single individual without children, $527 to a couple, and $805 to a couple with two children. At these levels, Canada's new government will be offsetting grocery cost increases beyond overall inflation since the pandemic.


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[1 NL: 187,000.  PEI: 56,000.  NB: 280,000.  NS: 360,000.  QC: 2.8 million.  ON 5 million.  MB: 475,000.  SK: 354,000.  AB: 1.3 million.  BC: 1.7 million.  YK: 10,000.  NWT:  11,000.  NU: 9,000.]

The government also announced a suite of measures to tackle food insecurity, support producers and strengthen supply chains, including:

  • Setting aside $500 million from the Strategic Response Fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line.
  • Creating a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and the organizations that support them.
  • Introducing immediate expensing for greenhouse buildings to lower the cost of food production. This allows producers to fully write off greenhouses acquired on or after November 4, 2025, and that become available for use before 2030. This measure supports increased domestic supply and investment in food production over the medium-term.
  • Providing $20 million to the Local Food Infrastructure Fund to ease immediate pressures with food banks. This supports food banks and other national, regional, and local organizations to deliver more nutritious food to families in need.
  • Developing a National Food Security Strategy to tackle the root causes of food insecurity – one that strengthens domestic food production and improves access to affordable, nutritious food.
  • This strategy will also include measures to implement unit price labelling and support the work of the Competition Bureau in monitoring and enforcing competition in the market, including food supply chains.

Quote

"Families in Mississauga and across the GTA are feeling the pressure every time they walk into a grocery store. The new Canada Groceries and Essentials Benefit puts meaningful support directly into the hands of Canadians who need it most, helping them cover the cost of food and everyday essentials while we continue the work of building the strongest economy in the G7."
The Honourable Rechie Valdez, Minister of Women and Gender Equality and Secretary of State (Small Business and Tourism)

"I hear every day from my constituents who are working hard and doing everything they can, yet still feeling the strain of rising grocery and household costs. The Canada Groceries and Essentials Benefit sends a clear message that Canadians are not alone and that their government is responding. This measure delivers immediate relief on groceries and essentials, while strengthening domestic food production and supply chains to help build a more affordable economy for Canadians."
Iqra Khalid, Member of Parliament, Mississauga—Erin Mills, Ontario

Quick Facts

  • Under the proposed Canada Groceries and Essentials Benefit:
    • A single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026-27 benefit year (total increase of $402). In total, they would receive $950 for the 2026-27 benefit year (including the top-up).
    • A couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for the 2026-27 benefit year (total increase of $805). In total, they would receive $1,890 for the 2026-27 benefit year (including the top-up).
  • After the one-time payment is made in the spring of 2026 (subject to Royal Assent), eligible families and individuals in Canada will receive the enriched regular payments under the Canada Groceries and Essentials Benefit as of July 2026 (subject to Royal Assent).
  • The benefit will be paid quarterly, at the start of the quarter, to permit timely access to the funds to help families with day-to-day expenses. These amounts are additional to existing benefits such as the Canada Child Benefit, the Canada Disability Benefit, and the Guaranteed Income Supplement.

Associated links

SOURCE Women and Gender Equality Canada