grocery store, Colwood

Federal government announces grocery benefit starting mid-2026

Monday January 26, 2026 | LANGFORD, BC

by Mary P Brooke, B.Sc. (Foods & Nutrition) | UFRIS Executive Lead


Many low- and modest-income households have been missing the consumer carbon tax rebate since it was dropped by the Carney government last spring.

Delivered along with the quarterly GST rebate, the carbon tax rebate was sometimes what helped some households make ends in any given month.

prime minister, mark carney, grocery store
Prime Minister Mark Carney makes grocery benefit announcement at a grocery store in Ottawa, Jan 26, 2026. [livesteram]

As grocery prices have continued to rise in Canada following the pandemic, today the federal Liberal government has announced what they call the “Canada Groceries and Essentials Benefit“, which will be delivered along with the GST rebate to households that qualify through their tax returns.

This is excellent news for people who know that eating healthy food — particularly fresh food — is important if not essential for good health. The additional dollars will help people make healthy food choices at the grocery store.

The first payment — including a catch-up boost — will be delivered in early July 2026. The 25% increase over the current GST amount will continue for four more years thereafter.

Canada Groceries and Essentials Benefit
Canada Groceries and Essentials Benefit [Govenrment of Canada]

As well — and quite significantly — the federal government has announced a strategy to tackle food insecurity, support producers, and strengthen grocery supply chains. There’s even financial support for greenhouse installations as a way to start growing more warm-climate foods here in Canada — toward reducing dependency on imported fruits during the winter season.

It is estimated that 12.6 million individuals and families will benefit from the new Canada Groceries and Essentials Benefit, representing a material support to Canadians who currently need it the most, while the government’s plan to build a stronger economy continues to kick-in.

Urban Food Resilience Initiatives Society (UFRIS) officially recognizes the importance and potentially significant impact of these new initiatives — both the grocery rebate and the strategy for generating more food supply resilience and a competitive grocery sector to help keep prices under control.

Meanwhile, of course UFRIS continues to encourage households to grow their own fresh vegetables and fruits, either in their own yard or in community.

Comments and feedback welcome. Email to info@urbanfoodresilience.ca .


For more details and the political angles of it all, see Canada Groceries and Essentials Benefit replaces GST rebate to help Canadians with affordability (Island Social Trends, January 26, 2026).