Canada Boosts GST Credit by 25% as Families Struggle With Rising Food Costs
Pressure on household budgets has reached a breaking point for millions of Canadians and today the federal government is moving to respond with direct cash support aimed at those who need it most.
The Carney government has announced a significant increase to the GST credit, a benefit paid quarterly to low and modest income Canadians. Over the next five years, the credit will rise by 25 percent, reaching roughly 12 million people across the country. On top of that, a one time special payment will be issued this year, equal to about half of a full year’s credit, with both measures set to begin in June.
For a single low income adult, that means support jumping sharply this year, followed by higher annual payments in the years ahead. Families with children will see even larger gains, with thousands of dollars more flowing into household budgets over time. The goal is simple and urgent, to help people afford food and basic necessities as prices remain stubbornly high.
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The prime minister unveiled the plan from inside a grocery store, a deliberate backdrop meant to underline the reality many families are facing. Food costs have climbed for years and the impact is now visible across the country. Food banks are seeing record demand, with millions of visits every month. A growing share of households report food insecurity and many Canadians say they are only one unexpected bill away from needing emergency help.
From the government’s perspective, targeted benefits like the GST credit are among the fastest ways to deliver relief. Payments already exist, the system is in place and money can reach people predictably without new applications. The cost, however, is substantial, running into billions of dollars and that has fueled political debate in Ottawa.
Opposition parties agree that affordability is a crisis, but they disagree on the solution. Conservatives argue the government should focus on cutting taxes and controlling deficits, saying inflationary spending worsens the problem. The New Democrats support the increase but want broader action, including removing sales tax from essential food items altogether.
The government insists this is not an election move but part of a broader economic plan, one that includes tax cuts and efforts to strengthen domestic food production. Officials acknowledge results will take time, but say immediate help is needed now, not years from now.
For families struggling to keep up, this extra support could mean fewer skipped meals and less reliance on food banks. For policymakers, it raises a bigger question about how far governments must go as the cost of living reshapes daily life.
Stay with us as this story develops and keep watching for continued coverage on how these changes could affect households across Canada and beyond.
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