Senate Passes Bill Giving Canadians One-Time Grocery Rebate on July 5

Produce in a grocery store in Toronto on Nov. 30, 2018. (Nathan Denette/The Canadian Press)

With the Senate passing Bill C-46 on May 11, Canadians will be eligible to receive the so-called Grocery Rebate on July 5, which was promised in this year’s federal budget.

“While inflation continues to come down for the ninth month in a row, in Budget 2023, our government is delivering new, targeted inflation relief for Canadians who need it most, and providing immediate support to strengthen public health care for Canadians,” said Finance Minister Chrystia Freeland.

As part of the Cost of Living Act, a total of 11 million low- and middle-income Canadians will be eligible for the rebate, which includes $234 for single Canadians without children, $225 for seniors, and $467 for eligible couples with two children.

According to the federal government, a hypothetical single mother with one child and $30,000 in net income will receive $386.50 for groceries, while a single senior with $20,000 in net income would receive $233.50 for groceries.

According to Statistics Canada, food prices increased by around 10 percent in 2022, which was higher than expected. Canada’s Food Price Report 2023, released by Dalhousie University’s Agri-Food Analytics Lab in December 2022, projected food prices will increase by 5 percent to 7 percent in 2023, and the average Canadian family of four will pay $1,065 more for food than they did in 2022.

Statistics Canada has blamed the increase in food costs on COVID-19-related supply chain disruptions, poor weather in food-producing regions, surging energy prices, and the Russian invasion of Ukraine. Meanwhile, Conservative MP Pierre Poilievre has said the Liberal government’s carbon tax is to blame for increasing “the cost for farmers and truckers to produce and deliver the food that we eat.”

Canada Health Transfer

Bill C-46 will also provide an additional $2 billion to the Canadian Health Transfer (CHT), which was previously announced in February 2022. According to the federal government, this money will help to alleviate “immediate pressures in healthcare systems” across Canada.

This $2 billion builds on previous CHT top-ups that total $6.5 billion provided throughout COVID-19, according to the federal government. In exchange for the funding, provinces and territories will be expected to improve how health information is collected, shared, and reported to Canadians to help manage public health emergencies and deliver better health outcomes.

“As we continue our work with provinces and territories to strengthen health care services, this investment will help address the immediate pressures, especially in pediatric hospitals, emergency rooms, and surgical and diagnostic backlogs,” said Minister of Health Jean-Yves Duclos.