Local food bank praising fed’s grocery benefit as ‘a good start’

New reporting from the Parliamentary Budget Officer (PBO) indicates that the federal government’s plan to help offset the growing cost of groceries will be more expensive than first thought.

But not by a lot.

When the Carney government announced the Canada Groceries and Essentials Benefit (CGEB), the price tag was estimated at $11.7 billion over five years. The PBO suggests that the number will be closer to $12.4 billion.

Of course, nothing is written in stone. The CGEB has to achieve royal assent before becoming law. That is expected to happen in the coming weeks.

Once passed, the CGEB would provide eligible recipients with a one-time top-up payment that would equal 50 per cent of the individual’s 2024-25 GST Rebate. The rebate will then increase by 25 per cent for the next five years.

According to the government’s data:

• A single senior with $25,000 in net income would receive a one-time top-up of $267 plus a longer-term increase of $136 for the 2026-27 benefit year (total increase of $402). In total, they would receive $950 for the 2026-27 benefit year (including the top-up).
• A couple with two children with $40,000 in net income would receive a one-time top-up of $533 plus an increase of $272 for the 2026-27 benefit year (total increase of $805). In total, they would receive $1,890 for the 2026-27 benefit year (including the top-up).

The government hopes to start mailing out cheques in June.

While the new measures await final approval, the Food Bank of Waterloo Region (FBWR) is watching the process carefully and likes what it is seeing.

Food bank CEO, Kim Wilhelm, stopped by The Mike Farwell Show and said this is the right move at this moment.

“Food prices will be going up another $1,000 for families this year. For families already living pay cheque to pay cheque, that kind of increase isn’t just challenging, it’s devastating. And, these families are already doing everything they can.”

She added that lifting the pressure, even slightly, will have a major impact on some of these families, but it won’t solve the greater problem.

“This benefit, truthfully, won’t reach everyone who is feeling the pinch. It also won’t solve the broader affordability challenge that people are facing. That said, there are families with the lowest income that are going to be supported, and it will make a true difference right now.”

Wilhelm said it’s meaningful to see the federal government take steps to address the systemic causes of food insecurity, but adds there is a long way to go.

“Hunger isn’t caused by a lack of generosity; it’s caused by gaps in our social systems. Community supports matter, but so does political will. So, of course, supporting local food banks like the FBWR through donations, volunteering or speaking up really helps meet urgent needs today.”