Families will see the latest increase in the Canada Child Tax Benefit starting July 20, 2001

OTTAWA,ONTARIO, July 17, 2001—The latest increase in the Canada Child Tax Benefit (CCTB) will be effective on July 20, 2001. More than 80 per cent of families with 5.9 million children in Canada will receive the Canada Child Tax Benefit in 2001/2002. The maximum benefit level paid to low-income families will reach $2,372 annually for the first child, $2,172 for the second child, and $2,175 for each additional child. The Canada Child Tax Benefit is fully indexed to keep up with inflation.

The CCTB is the Government of Canada’s contribution to the federal, provincial and territorial National Child Benefit (NCB) initiative^*. In 2001/2002, federal investment in the NCB will approach about $2.4 billion, and total CCTB expenditures for all families will increase to approximately $7.8 billion. The $740 million increase in the National Child Benefit through the Canada Child Tax Benefit translates into almost $300 more per child this year for families with net incomes up to $21,744. This means that 1.5 million families with 2.6 million children will benefit from the National Child Benefit in 2001/2002.

The NCB aims to prevent and reduce the depth of child poverty in Canada, promote labour market attachment by ensuring that families will always be better off as a result of working, and reduce overlap and duplication by harmonizing programs and benefits across jurisdictions.

“Since the introduction of the National Child Benefit in 1998, each year’s increase has meant additional National Child Benefit initiatives for low-income families such as breakfast programs, affordable day care and parent workshops, to name a few,” said Jane Stewart, Minister of Human Resources Development Canada and federal co-chair of Social Services Ministers. “A more secure and uniform level of basic income support for children in low-income families across the country is the result of the National Child Benefit.”

“The increased federal commitment to the National Child Benefit allows us to redirect provincial and territorial funds into programs and services, ” said Harry Van Mulligen, Saskatchewan Minister of Social Services and provincial co-chair of Social Services Ministers. “Our progress report released in April showed a big increase in families rising out of poverty and each province and territory is finding plenty of NCB success stories.”

Primary areas for provincial and territorial investments and reinvestments include child/day care, early childhood services/children-at-risk services, child benefits/Employment Income supplements and supplementary health benefits. Since the introduction of the NCB in July 1998, for example, 3,800 families in Saskatchewan, including 8,100 children, no longer rely on social assistance as a result of the NCB and provincial initiatives.

“We want to ensure that parents receive better support in their efforts to find and keep jobs and the National Child Benefit is making this happen,” added Jane Stewart. “We are encouraged by the Canadian Council on Social Development’s recent report that states real progress is being made to lower the incidence of poverty and the depth of poverty for working families with children due to the National Child Benefit in combination with the job market.”

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For more information on the National Child Benefit and the latest progress report, please refer to the National Child Benefit site at www.nationalchildbenefit.ca where you can find the attached backgrounder or contact.

For more information, please contact:

Shannon Thrussell
Press Secretary
Minister Stewart’s Office
(819) 953-2353

Bill Carney
Communications Officer
Saskatchewan Ministry of Social Services
(306) 787-0916

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^*The Government of Quebec has stated that it agrees with the basic principles of the National Child Benefit. However, it has not taken part in the initiative because it wishes to assume control of income support for the children of Quebec but has acted on its own in a comparable way. Quebec residents benefit from the increased Canada Child Tax Benefit in the same way as other Canadians. They also benefit from investments and reinvestments made by the government of Quebec towards family and childhood services as part of Quebec’s Family Policy.