Experts question efficacy of promised grocery rebate: 'I don't think it will be tremendously useful'
The budget aims to 'make life more affordable' while 'supporting the middle class.' In line with those initiatives is a so-called 'grocery rebate'
Global inflation has impacted all Canadians, and rising grocery prices in particular are hitting our wallets hard.
When the Canadian government released the 2023 federal budget earlier this week, many sought out what relief benefits it would bring.
The budget aims to “make life more affordable” while “supporting the middle class.” In line with those initiatives is a so-called "grocery rebate."
The proposed program is a one-time payment for middle and low-income Canadians and families to aid in food inflation which will be delivered with the GST credit.
“For 11 million Canadians and Canadian families, a new Grocery Rebate will help make up for higher prices at the checkout counter — without adding fuel to the fire of inflation,” Minister of Finance Chrystia Freeland said about the rebate.
“That’s why our budget contains targeted, temporary relief from the effects of inflation for those who need it."
How will the Canada grocery rebate work?
According to the budget, $2.5 billion is being allocated to inflation relief. Eligible couples with two children will have access to up to $467, single Canadians without children can get up to $234, and seniors will get up to $225.
The payments will roll out through a GST/HST rebate system, similar to the one-time GST credit provided last year as part of the federal government’s Affordability Plan.
But is it enough?
Some Canadians looked at the rebate as insufficient funds for the current state of the economy.
Financial advisor and content creator, Bridget Casey tweeted, “So much of the sensationalized offerings of #Budget2023 - grocery rebate! dental plan! - are underwhelming. Their main function is placating the middle class so they don’t notice they’re living in poverty.”
so much of the sensationalized offerings of #Budget2023 - grocery rebate! dental plan! - are underwhelming.
Their main function is placating the middle class so they don’t notice they’re living in poverty.— Bridget Casey (@BridgieCasey) March 28, 2023
Finance expert Jamie Golombek says the rebate is an attempt to get some cash into the hands of millions of lower and middle-income Canadian families. But he said the benefit is minimal and temporary.
"Will it help? Sure, but with the maximum rebate being $234 for a single person with no kids, that works out to less than five extra bucks per week, so I don't think it will be tremendously useful in combatting the rising cost of food. In fact, the five bucks won't even cover your weekly latte treat anymore," he said.
Golombek says that according to the 2023 Food Price Report, a single male adult Canadian spent around $4,000 in groceries last year.
“If food inflation is up by over 10% as of Sept 2022, then by my rough calculation, a single male adult would need at least $400 more this year to fully compensate for the inflationary increase in the cost of food over the past year,” he told Yahoo Canada.
So far, payment dates for the grocery rebate have not been announced.
