The Carney Government has announced a new ‘Groceries and Essentials Benefit’ coming to Canadians starting in July of this year. It’s part of a broader plan to, “build a stronger economy to make life more affordable for Canadians.”
“To ensure Canadians have the support they need right now, the government has introduced a series of new measures to bring down costs,” the official news release explains. “Including cutting taxes for 22 million Canadians, supercharging homebuilding [which is expected to generate jobs], and protect-ing and expanding vital social programs.”
Shot in the financial arm
The government is going to give Canadians a direct shot in the financial arm, with a new tax credit designed to help them pay for ‘groceries and essentials’. It’s a revamped version of the precious GST credit. And it reflects a substantial increase: 25 percent more, for the next 5 years, at least.
“In addition to that, we are providing a one-time payment, equivalent to a 50 percent increase this year. Combined, this means that a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years. A single person will receive up to $950 this year, and about $700 a year for the next four years.”
An estimated 22 million low-income Canadians will be eligible for the benefit.
My take
“Our plan is moving Canada’s economy from reliance to resilience, though some of the biggest long-term payoffs of this transformation will take time to be felt,” the news release cautions. I can only interpret that as a hedge on the bet that food prices will come down by the time the 5-year span of the plan runs its course.
Food prices have been rising since the COVID Crisis, and are still rising at a rate higher than the of overall annual rate of inflation. I don’t see 5 years being long enough to solve the real problems behind the issue.
What really needs to happen is, the supermarket cabals have to change their business models to accommodate reality. That means moderating their profit expectations and reducing retail food and ‘essentials’ prices.
The new Benefit does nothing to clamp down on the mega-grocers…
My questions to you:
Will you qualify for the new Grocery benefit?
Will it make any real difference to your ability to afford decent food for you and your family?
Do you believe that the government will succeed in its overall aim to stabilize the economy and create jobs?
Do you agree with me that the government should have included new regulations on the super-markets in the ‘Benefits’ package?
Muse on that…
~ Maggie J.