[Article] What the Canada Groceries and Essentials Benefit Means for Older Adults

On January 26, 2026 Prime Minister Mark Carney announced the new Canada Groceries and Essentials Benefit, which will increase the former Goods and Services Tax (GST) Credit by 25% for five years starting this July. It will also include a one-time payment, equivalent to a 50% increase this year. This benefit is a tax-free quarterly payment for Canadian individuals and families with low incomes. 

Many older adults are concerned about affordability and income adequacy. The National Institute on Ageing’s (NIA) 2025 Ageing in Canada Survey found that nearly one third of older adults identified the rising cost of living as their top financial concern.

The Canada Groceries and Essentials Benefit is a step in the right direction to alleviate some of the financial pressure older adults face. Food insecurity among older adults is rising and has increased from 8% in 2019 to 12.6% in 2023. According to the 2025 HungerCount report from Food Banks Canada there has also been an increase in food bank use by older adults, climbing from 7.7% in 2024 to 8.3% in 2025.

When it comes to engaging in social activities and accessing home and community care services, the NIA’s survey found that older adults reported cost as a top barrier, particularly among women and renters. 

For a single individual earning $25,000, the 25% top up to the existing GST Tax Credit under the new Canada Groceries and Essentials Benefit could translate to an additional $136 annually, with an additional $267 one-time payment in Spring 2026. This could offset some of the costs of food, social activities, or home and community care services that enable older adults to live a life of dignity. 

The Canada Groceries and Essentials Benefit is an automatic benefit based on tax filings. While this results in seamless access for many, it can create gaps for those who face barriers to filing taxes. This underscores the importance of making progress on automatic tax filing in Canada, as previously laid out in the 2025 federal budget.

Income supports are essential to ensuring Canadians of all ages, and particularly older Canadians, meet their basic needs.