GST credit hike won’t solve affordability challenges alone: expert

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This article was published 26/01/2026 (191 days ago), so information in it may no longer be current.

Proposed changes to the GST credit announced Monday by Prime Minister Mark Carney should provide some relief for lower-income Canadians, but some experts question how meaningful those savings will be.

Carney unveiled a 25 per cent hike to the GST credit in a temporary move set to last for five years, which will also issue a one-time payment this year worth 50 per cent of the credit.

Ottawa estimates the relief, being branded as the “Canada Groceries and Essentials Benefit,” would provide up to an additional $402 to a single individual without children, $527 to a couple, and $805 to a couple with two children.

H&R Block tax expert Yannick Lemay says it’s a “significant” step to help Canadians hold on to money tax-free given their rising daily expenses.

NerdWallet Canada banking expert Clay Jarvis also calls it a “considerate move” by the federal government.

However, he cautions that “a few hundred dollars spread out over the course of a year won’t be enough to stabilize struggling households.”

This report by The Canadian Press was first published Jan. 26, 2026.