AYLMER, Que. — Prime Minister Justin Trudeau says the federal government is committed to making sure its new child benefit does lift children out of poverty.
Trudeau says the benefit is the most significant measure Canada has ever taken to reduce poverty rates.
During the election, the Liberals promised to lift about 315,000 children out of poverty via a benefit that would add to family income and bring them above the income cut-off used to determine poverty.
The new benefit rolled out today and Trudeau says it's expected to help 300,000 children.
He made the comments at the same restaurant where he stood more than a year ago and pledged to bring in the new program.
Trudeau says the $23 billion a year program will help pay for food, after-school activities, new clothes, shoes and other things that make a meaningful difference in people's lives.
THREE FACTS ABOUT THE GOVERNMENT'S NEW CANADA CHILD BENEFIT
OTTAWA — The federal government's new child benefit will arrive in bank accounts and mailboxes starting Wednesday, and replaces the universal child care benefit, the Canada child tax benefit and the national child benefit supplement.
Here are three things to know about the new program:
1) If you already receive the universal child care benefit, or the child tax benefit, you don't need to apply for the new one. Your information is already on file and all you have to do is file your 2015 tax return. Payments will be made by direct deposit if you're signed up for it, or by cheque if that is how you received the universal child care benefit around the 20th of each month.
2) The new child benefit won't count as income, meaning it won't count against your tax return next year and be taxed like the previous universal child care benefit. Provinces have also said they won't count the new money when calculating income-tested benefits like rent and child care supplements.
3) How much you receive is based on two things: the number of children under age 18 in your household and your net family income. Families with a net income of less than $30,000 receive the full benefit of $533 per month for a child under six and $450 per month for children six to 17. Benefit levels drop as income rises. Most families, on average, will receive about $191 per month. An extra $227 per month is added for a child who qualifies for a disability payment.
A By-the-numbers Look At The New Canada Child Benefit That Rolled Out Wednesday
$23 billion: Cost of the Canada child benefit in the Liberals' 2016 budget.
$6,400: Maximum benefit payment for each child under age six.
$5,400: Maximum benefit payment for each child age six to 17.
$2,300: Average benefit payments most families will receive.
3.8 million: Families that received the previous universal child care benefit.
3.3 million: Families who are expected to receive more under the new benefit plan.
315,000: Children the Liberals promised during the campaign to lift out of poverty through the Canada child benefit.
293,000: Children federal officials have estimated will be lifted out of poverty through the new benefit based on simulations using benefit and tax data.
8,000: Number of indigenous children on reserve estimated to be lifted out of poverty through the benefit.
16,000: Number of indigenous children on reserve who could be lifted out of poverty if all families filed their taxes.
SOURCES: Employment and Social Development Canada, Finance Canada.
