Prime Minister

Mark Carney

promised Monday to put money back in the pockets of Canadians struggling with the high cost of living by temporarily raising the

Goods and Services Tax

credit.

The GST credit will be renamed the Canada Groceries and Essentials Benefit and increased by 25 per cent for the next five years, starting in July. The federal government will also provide a one-time payment equal to a 50 per cent increase this year.

Under the measures, a family of four will receive up to $1,890 this year and $1,400 a year for the next four years.

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“Our government is taking direct action to make life more affordable for Canadians. We are providing immediate relief on groceries and essentials, while strengthening domestic food production, competition and supply chains to build a more resilient, affordable economy for the future,” said Finance Minister François-Philippe Champagne

in a news release.

The government said the increased payments are to support Canadians as it works to build a stronger economy through securing new trade deals and investment abroad.

“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,” it said in the release.

Other measures announced Monday include setting aside $500 million in the Strategic Response Fund to help businesses with the costs of supply chain disruptions so they don’t have to pass them on to consumers.

Ottawa will also provide $20 million to the Local Food Infrastructure Fund which supports food banks and other organizations that provide food to Canadians. A National Food Security Strategy is being developed that aims to strengthen domestic food production and improve access to affordable food.

The Prime Minister made the announcement at an Ottawa grocery store as MPs returned to the House of Commons after a winter break.

More to come …