Policy primer: Canada Groceries and Essentials Benefit
March 18, 2026
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POLICY PRIMER PDFLast updated: March 2026
Food insecurity in Canada remains at historic highs: At least 10 million people can’t afford nourishing food.1 As rent, food prices, and the overall cost of living soar, the federal government must take action to address the root cause of food insecurity: insufficient income. Strengthening income supports remains the most effective way to reduce food insecurity.2
In January 2026, the government announced the new Canada Groceries and Essentials Benefit (CGEB), a crucial step forward and a direct response to sustained cross sector advocacy. Yet as currently designed, the CGEB falls short of what’s needed to meaningfully reduce food insecurity.
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POLICY PRIMER PDFAt least 1 in 4 people in Canada experience food insecurity.1
The time to act is now!
What is the CGEB?3
The CGEB replaces the GST/HST credit, a tax-free quarterly payment that helps low- and modest-income households offset sales taxes. Building on this existing system for fast and broad delivery, the CGEB aims to help Canadians with low and modest incomes afford everyday essentials. Like the original Groceries and Essentials Benefit proposed by the Affordability Action Council,4 it recognizes that households need predictable income support to afford food and other basics.
What the CGEB provides
According to the federal government, the CGEB has two parts:
- A one-time top-up: In spring 2026, eligible households will receive an extra payment equal to half of their 2025/26 GST/HST credit. The government estimates up to $950 for a single person and $1,890 for a family of four.
- A temporary increase: Starting July 2026, the base benefit will increase by 25% and stay at that higher level for five years. It will also be adjusted for inflation. The government estimates up to $700 per year for a single person and $1,400 per year for a family of four.
Why more is needed
Analysis from the Affordability Action Council shows that the current CGEB is a partial measure that leaves important gaps:5
- The benefit levels are too modest to significantly reduce food insecurity.
- Some people may still miss out, especially low-income single adults aged 18–64 who face even greater challenges affording food.
- As payments are too small and paid quarterly, they may not fully stabilize monthly budgets.
How the CGEB should be improved
To maximize impact, the CGEB should be strengthened to:
- Make it permanent, in order to provide stability and long-term income security.
- Target households earning under $60,000 a year who are struggling to afford basic needs.
- Provide adequate monthly benefit levels that meaningfully reduce food insecurity:
- up to $50 per child ($600 annually), and
- up to $150 per adult person aged 18–64 (capped at $1,800 per year).
- Reflect the higher costs and realities in the North, including introducing top-ups.
- Ensure strong and equitable support for low-income single adults aged 18–64.
- Maintain predictable, monthly delivery through the tax system.
The CGEB is a welcome step. With targeted improvements, it could become a powerful tool to reduce food insecurity across Canada.
References
- Statistics Canada. (2025). Canadian Income Survey, 2023.
- PROOF. (2022). Food insecurity: A problem of inadequate income, not solved by food.
- Department of Finance Canada. (2026). The new Canada Groceries and Essentials Benefit.
- Affordability Action Council. (2023). Groceries and Essentials Benefit: Helping people with low incomes afford everyday necessities. Institute for Research on Public Policy.
- Petit, G., & Yassin, S. (2026). Expanding the GST/HST credit: How the Canada Groceries and Essentials Benefit helps Canadians and why design choices matter. Institute for Research on Public Policy.
