OTTAWA (NEWS 1130) — More financial support is on the way for Canadian families, but the economic effects of the pandemic are limiting how much more they’ll be getting.
Ahmed Hussen, Minister of Families, Children and Social Development, announced the maximum annual Canada Child Benefit will increase to $6,833 per child under age six and $5,765 per child aged six through 17 in the 2021–2022 benefit year. It’s an increase of more than $350 compared to when the program first took effect.
However, this will be the lowest annual increase in federal child benefits since payments were tied to inflation, because the pandemic has weighed on price growth over the last year.
“It’s automatic, so all parents with children who are already receiving the Canada Child Benefit will automatically get this increase,” Hussen said Tuesday.
"The bottom line is we are making investments, so no one is left behind," says Hussen.
He announces they're indexing Canada Child Benefit with inflation, so more families will be able to get access to more cash, amount differs depending on age of child.
— Mark Paré (@MarkLPare) July 20, 2021
The total value of payments will only rise by one per cent compared to the previous year, in line with the country’s headline inflation reading, or roughly $5 more per month, per child.
Hussen said the benefit itself has made an impact on poverty rates and families facing a financial crunch.
Each year the CCB provides an estimated $25 billion in tax-free support to about 3.5 million families.
The federal government says it has helped 435,000 children out of poverty, grown the middle class, and put more money in the pockets of 9 out of 10 Canadian families.
Additionally, families struggling with the financial impacts of the COVID-19 pandemic can receive additional temporary support of up to $1,200 for each child under the age of six through the CCB.
“Every child deserves the best possible start in life,” Hussen said.
The extra payments should push the overall price tag of the benefit to over $27 billion this fiscal year before falling next year without the one-time, COVID-19 payments pushing up over the overall tab.
– With files from Mark Pare