Friday, September 24, 2021
ADVT 
National

Child benefits get small bump in payments

Darpan News Desk The Canadian Press, 20 Jul, 2021 09:53 AM
  • Child benefits get small bump in payments

Canadian families are seeing the lowest annual increase in federal child benefits since payments were tied to inflation as the pandemic has weighed on price growth over the last year.

The government announced Tuesday that Canada Child Benefit payments will max out this year at $6,833 for children five and under, and $5,765 for children six to 17.

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.

Social Development Minister Ahmed Hussen says the benefit itself has made an impact on poverty rates and families facing a financial crunch.

He is also touting extra child benefit payments the government is sending to parents that top out at $1,200 this year.

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.

After that, the Finance Department estimated benefits to rise annually at around two per cent, which it said was in line with inflation expectations.

The Bank of Canada, which is mandated to keep inflation in check, now expects prices to increase by more than three per cent this year, and then above the central bank's comfort zone of two per cent in 2022 and 2023.

If that's the case, payments would rise at the fastest rate since the Liberals tied increases to inflation three years ago.

"We have made a commitment to make sure that we are there for families," Hussen said at an event in Kitchener-Waterloo, Ont.

"Before the pandemic during the pandemic, and after the pandemic, we are committed to continuing to support Canadian families. And one of the key pillars of that is the Canada Child Benefit."

The Liberals introduced the income-tested benefit in July 2016, shortly after taking office, and then tied the payments to the pace of price increases in 2018, two years before original plan to do so last year.

Since its introduction, the number of children living in poverty has fallen by 435,000 and the child poverty rate slid to 9.6 per cent from 16.3 per cent in 2019, according to the most recent figures from Statistics Canada.

The most recent data posted to a government website shows that in the 2019-2020 benefit year, more than $26.3 billion in child benefits flowed to families of some seven million children with an average payment of $3,811 for the year.

Broken down by riding, spending somewhat reflects where child poverty rates have previously been flagged as high, including in NDP MP Niki Ashton's Manitoba riding of Churchill—Keewatinook Aski, and Conservative Gary Vidal's Saskatchewan riding of Desnethé—Missinippi—Churchill River.

Five of the top 10 ridings for child benefit spending are held by Conservatives, or won by the party in the 2019 election, four by the Liberals, and Ashton as the lone New Democrat.</

MORE National ARTICLES

LeBlanc seeks to reassure on vaccine mix-and-match

LeBlanc seeks to reassure on vaccine mix-and-match

While Canadian health authorities say recipients of a Moderna dose should not hesitate to have Pfizer-BioNTech as their second jab — or vice versa — the U.S. Food and Drug Administration has so far been reluctant to sanction the practice, saying it should only be done in "exceptional situations."

LeBlanc seeks to reassure on vaccine mix-and-match

B.C. region calls for more wildfire resources

B.C. region calls for more wildfire resources

A regional politician in British Columbia's Interior is calling for more support amid a "dire" wildfire situation that he said has filled every available hotel with fleeing evacuees and stretched local security resources beyond their capacity.

B.C. region calls for more wildfire resources

Vancouver Police arrest suspect after security guard stabbed

Vancouver Police arrest suspect after security guard stabbed

VPD responded to multiple 9-1-1 calls just before 10 a.m. Monday after a security guard at a drug store near Thurlow and Davie Street was stabbed multiple times while trying to detain a shoplifter. VPD officers performed first aid until paramedics arrived and transported the victim to hospital.

Vancouver Police arrest suspect after security guard stabbed

156 COVID19 cases over 3 days

156 COVID19 cases over 3 days

79.9% (3,701,843) of eligible people 12 and older in B.C. have received their first dose of COVID-19 vaccine and 53.2% (2,464,201) have received their second dose.

156 COVID19 cases over 3 days

Canada is extending its ban on direct flights to India until at least August 21

Canada is extending its ban on direct flights to India until at least August 21

Canada has extended the ban on incoming passenger flights from India for another month til August 21, 2021. The federal government is not renewing the travel ban for Pakistan. 

Canada is extending its ban on direct flights to India until at least August 21

Fully vaccinated U.S. citizens can enter Canada Aug. 9, rest of world Sept. 7

Fully vaccinated U.S. citizens can enter Canada Aug. 9, rest of world Sept. 7

Officials say the 14-day quarantine requirement will be waived beginning the second week of August for eligible travellers who are currently residing in the United States and have received a full course of a COVID-19 vaccine approved for use in Canada.

Fully vaccinated U.S. citizens can enter Canada Aug. 9, rest of world Sept. 7

PrevNext