Federal government to introduce grocery rebate: sources

Politics

Prime Minister Mark Carney is set to announce an increase to the GST credit on Monday, as part of a larger suite of affordability measures intended to offset the rising cost of groceries.

Prime Minister Mark Carney to announce GST credit top-up, other affordability measures on Monday

Kate McKenna · CBC News · Posted: Jan 25, 2026 10:34 PM EST | Last Updated: 8 hours ago

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Prime Minister Mark Carney arrives to a caucus meeting on Parliament Hill in Ottawa, on Sunday. Carney faces pressure from the opposition to address grocery prices, which are outpacing other forms of inflation. (Patrick Doyle/The Canadian Press)

Prime Minister Mark Carney is set to announce an increase to the GST credit on Monday, as part of a larger suite of affordability measures intended to offset the rising cost of groceries.

Two senior government sources speaking on the condition they not be named say that quarterly GST payments will increase by 25 per cent over the next five years, and the measure is expected to affect approximately 12 million Canadians.

It will also include a one-time top-up of 50 per cent in June. The program will be called the “Canada Groceries and Essentials Benefit.”

The move comes as Carney faces pressure from the opposition to address grocery prices, which are outpacing other forms of inflation.

Federal estimates suggest that the one-time top up, plus the quarterly 25 per cent top up, could mean an additional $400 this calendar year for a low-income single person and $800 this year for a couple with two children.

The top-up to the GST credit was first reported by the Toronto Star. There will be other affordability measures announced on Monday, including steps to fix structural problems with Canada’s food supply chain, and improve competition.

The prime minister is set to make this announcement in Ottawa on Monday morning before travelling to meet with Ontario Premier Doug Ford in the afternoon.

ABOUT THE AUTHOR

Kate McKenna is a senior reporter with CBC’s parliamentary bureau in Ottawa, where she covers federal politics. She previously worked for CBC’s The Fifth Estate and in the Halifax, Montreal and Charlottetown newsrooms. Her investigative and breaking news coverage has won five RTDNA awards. She is the author of No Choice: The 30-Year Fight for Abortion on Prince Edward Island.

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