The federal government is increasing the existing GST credit to help address affordability.

The existing GST credit is being increased by 25 per cent starting this year and continuing for the next five years.

Prime Minister Mark Carney announced today that government is also introducing a new, one-time Groceries and Essentials Benefit, equivalent to 50 per cent of the GST credit.

He says right now a family of four receives about $1,100 a year with the existing GST credit, but with the new benefit, “that same family will receive up to $1,890 this year, and about $1,400 a year for each of the next four years.”

For a single person who now receives $540 a year, that will increase to $950 this year, and $700 a year for the next four years.