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Federal Government Introduces New Canada Groceries & Essentials Benefit and Measures to Lower Gas Price at Pumps

New federal measures are being introduced to help families and individuals manage the rising cost of groceries and everyday essentials, along with additional affordability relief through the temporary suspension of the federal fuel excise tax to reduce up to 10 cents per liter at the gas pump.

Beginning June 5, 2026, eligible Canadians will receive a one-time GST/HST credit top-up as part of the transition to the new Canada Groceries and Essentials Benefit, announced today by the Honourable Wayne Long, Secretary of State (Canada Revenue Agency and Financial Institutions).

The one-time payment will be equal to 50 per cent of the GST/HST credit for the 2025–26 benefit year. Starting July 3, 2026, the Canada Groceries and Essentials Benefit will replace the GST/HST credit and provide 25 per cent higher quarterly payments for the next five years. Together, these measures will deliver ongoing support to more than 12 million Canadians.

“Families across Brampton are feeling the pressure of rising grocery prices and higher everyday costs,” said Sonia Sidhu, MP for Brampton South. “This one-time top-up, combined with stronger ongoing payments, will provide meaningful relief and help households better manage their budgets during challenging times.”

In 2026, the Canada Groceries and Essentials Benefit could provide up to $1,890 for a family of four and up to $950 for a single person, combining a one‑time top‑up with higher quarterly payments. This support aims to help Canadians manage rising grocery and essential costs, as food prices have outpaced inflation since 2020, adding about $782 in expenses for the average household.

Canadians who filed their 2024 tax return and were entitled to the GST/HST credit in January 2026 will automatically receive the one-time payment on June 5, 2026. No application is required. In some cases, the payment may still appear as the GST/HST credit in Canada Revenue Agency accounts.

Beginning July 3, 2026, the Canada Groceries and Essentials Benefit will officially replace the GST/HST credit, with higher quarterly payments based on information from individuals’ 2025 tax returns.

Additional Affordability Relief at the gas pumps:

This new benefit builds on further affordability measures announced this week, including a temporary suspension of the federal fuel excise tax from April 20 to September 7, 2026. This measure will reduce fuel costs up to 10 cents per litre on gasoline, providing additional relief for families and commuters.

“Affordability means taking action where it matters most,” added Sidhu. “By lowering everyday costs and strengthening income supports, we are ensuring Canadians have help when they need it most.”

For more information, residents are encouraged to visit canada.ca or contact the constituency office of the Member of Parliament for Brampton South.