National Child Benefit brings higher income and more services to low-income families

OTTAWA, ONTARIO, July 20, 2000 - More than $425 million in federal funds is being added to the National Child Benefit (NCB) along with expanded provincial/territorial investments to help low-income families, announced the Honourable Jane Stewart, Minister of Human Resources Development Canada, and the Honourable Peter Christie, Minister of Nova Scotia Community Services. The two Ministers made the announcement on the second anniversary of the NCB, and issued a policy statement on behalf of Federal/Provincial/ Territorial Ministers responsible for Social Services.

Starting today, the Government of Canada is increasing payments to low-income families, bringing its total yearly investment in the NCB to $1.7 billion. Families with net incomes up to $21,214 will now receive $977 annually for the first child ($192 more than last year), $771 for the second child ($186 more), and $694 for each additional child ($184 more). The National Child Benefit Supplement, now fully indexed to keep up with inflation, is paid on top of the basic Canada Child Tax Benefit.

“The National Child Benefit is making a real difference in helping parents support their children. But it especially helps low-income parents make the transition to the workforce while improving their family’s quality of life. With this further investment today, the Government of Canada is again demonstrating its commitment to children in need,” said Minister Stewart.

For their role in the National Child Benefit, participating provinces, territories and First Nations have already put more than $500 million into initiatives that support the goals of the NCB. This year, additional investments will be made to help ensure that children get a healthy start in life and families can participate in society and the economy.

Primary areas for reinvestment include: additional income benefits or supplements; more child care initiatives to allow parents to work; supplementary health benefits for children in low-income families; and expanded early childhood development programs to help children grow into healthy young people. These funds build on the significant array of existing social services, health and education programs for families, which are developed, delivered, and funded by provinces, territories and First Nations.

“Governments share the same goals,” said Minister Christie. “We want to reduce child poverty and promote parents’ attachment to the workforce. The flexibility of the NCB allows each province or territory to find the best way to meet those goals. Generally, provinces and territories have moved toward programs which help families become more self-sufficient,” he added.

The Ministers also released the National Child Benefit Future Directions. This document emphasizes their ongoing commitment to the NCB partnership and the creation of a national platform of income support for families with children. This is leading to expanded provincial-territorial and First Nations investment in benefits and services for children.

Information about the National Child Benefit is available on the Internet. For details about the Canada Child Tax Benefit, visit http://www.ccra-adrc.gc.ca and visit Seeing The Possibilities for policy background. Information about provincial and territorial NCB initiatives is also available from government departments responsible for social services in each jurisdiction.

National Child Benefit Future Directions:
A Statement by Federal/Provincial/Territorial Ministers Responsible for Social Services

Federal/Provincial/Territorial Ministers Responsible for Social Services:

• support the National Child Benefit (NCB) approach to addressing child poverty and workforce attachments of parents;
• endorse the actions taken by governments to put NCB funding on a secure and sustainable path;
• support the emerging national platform of income support that the NCB is building;
• recognise the contribution of NCB reinvestments and support the principle of NCB investments in early childhood development initiatives; and
• reiterate their commitment to a learning model of accountability that reports regularly on the results of NCB initiatives to the public.

NCB Commitment

Canadian governments are working in partnership to improve income support, social services and other important benefits for low-income families with children. ¹ Through their commitment to the NCB, Canadian governments have come together to improve the circumstances of children in low-income families and to help parents find and keep jobs by improving the benefits and services available for them and their children. In this way, the NCB supports the goals of the broader National Children’s Agenda.

This statement by Federal, Provincial and Territorial Ministers Responsible for Social Services strongly endorses the NCB’s unique approach to addressing the issues of child poverty and workforce attachment. Ministers support the emerging national platform of income support for children that the NCB is building and endorse the social services that jurisdictions have built to complement this assistance. Ministers also recognize the growing evidence of the importance of early childhood development and believe that the NCB can make a positive contribution toward improving the life chances of children in low-income families.

Key Features of the NCB

Three key features define the NCB:

• the NCB takes a multi-faceted approach to addressing child poverty and workforce attachment by supporting a variety of programs, such as integrated child benefits, earning supplements, extended health benefits, child nutrition initiatives and child day care. This approach offers each jurisdiction the flexibility to meet the varying needs and priorities of its citizens.
• the NCB is based on a partnership between Canadian governments. This partnership is characterized by shared decision-making and policy development as well as joint accountability.
• the NCB emphasizes a learning model of accountability. Through performance measurement and reporting on results, the NCB promotes program effectiveness, information sharing and learning.

A Multi-Faceted Policy Approach
Building A National Platform of Income Support

As its contribution to the NCB, the Government of Canada has substantially increased child benefits for low-income families. By July 2000, the Government of Canada will have invested $1.7 billion in the NCB. The February 28, 2000, federal budget announced that the Government of Canada will invest an additional $500 million in the NCB by July 2001. The federal budget also took steps to sustain funding for the NCB by restoring full indexation to the tax system. As a result, low-income families will have a secure source of support for their children. Including the benefits of indexation, the Government of Canada’s investment in the NCB will increase to $2.5 billion in ongoing funding by 2004.

The NCB is restructuring the system of income support for low-income families with children. It is replacing child benefits delivered through provincial/territorial social assistance systems with a national platform of income-tested child benefits delivered outside of social assistance. By providing child benefits to all low-income families with children, regardless of their source of income, the NCB is levelling the playing field between families on social assistance and the working poor. Families on welfare that enter the work force will be better able to provide for their families. In this way, the NCB is removing barriers to employment and supporting working families.

This national platform of income support has certain defining characteristics. The platform:

provides basic income for Canadian children delivered independently of provincial/territorial and First Nations’ social assistance systems;is based on a non-intrusive income test which uses income information from personal income tax forms filed by parents; is part of the larger Canada Child Tax Benefit, which provides benefits to 80 per cent of all Canadian families with children; and may be supplemented by provincial/territorial income-tested child benefits.

Benefits and Services for Children

Provinces, territories and First Nations have increased benefits and services available for low-income families with children by over $500 million per year. These additional investments build and expand on the substantial support systems that governments and First Nations already have in place to help low-income families. These programs are crucial in ensuring that children grow up healthy and that low-income families have the opportunity to fully participate in Canada’s vibrant society and robust economy.

Although flexibility in determining provincial/territorial reinvestments is a hallmark of the NCB, there are clearly patterns of convergence in the range of services and benefits provided. For example, several jurisdictions have developed integrated child benefits and earned income supplements to help low-income working families. Jurisdictions have introduced supplementary health assistance outside social assistance and many have expanded child day care to help families remain in the workforce. Others have introduced extensive early childhood development and intervention strategies and new employment and training programs to help people gain the skills needed to find work.

First Nations that deliver social assistance have determined their own reinvestment initiatives in ways that meet their local needs and priorities. This includes the introduction of new programs and services for low-income families with children or the enhancement of the current range of community-based programs. Examples include child day care, child nutrition, parenting, family services, recreation, youth development, clothing outlets, and training and employability skills. The Government of Canada is committed to working with First Nations to ensure that First Nations’ children, like other Canadian children, benefit from the NCB.

The NCB reinvestment framework has been a successful means of enhancing the range of benefits and services for low-income families with children. Federal/Provincial/ Territorial Ministers Responsible for Social Services also recognize the important role that early childhood development initiatives can have on children’s outcomes. Extensive evidence from neuroscience, health, human development and other disciplines confirms that a child’s development from conception to age six lays the foundation for coping, learning, health and well-being throughout their lifetime. Mounting evidence also shows that early childhood development services can effectively stimulate children’s physical, social, emotional and cognitive development. Consequently, Ministers support the principle of NCB investments in these initiatives as a means of improving both the short- and long-term lives of children living in low-income families.

Moving Forward in Partnership

As the NCB moves forward, governments remain committed to the partnership that has helped make the NCB successful. This partnership is characterized by cooperation, openness, flexibility, evolution and accountability. Underlying this partnership is mutual respect between governments and a commitment to improve the lives of children living in low-income families.

Accountability

Accountability is a central feature of the NCB initiative. The accountability framework of the NCB has three components: annual reporting to the public, evaluation, and related research. The annual progress report is the cornerstone of the NCB’s accountability framework. It is the primary means of reporting to the public on expenditures, program outputs and progress indicators. In May 1999, Federal/Provincial/Territorial Ministers Responsible for Social Services released the first annual National Child Benefit Progress Report. With this report, governments took an important first step in fulfilling the commitment of Ministers to report regularly on the progress of the NCB initiative.

Governments are also committed to a coordinated approach of evaluating the NCB. Based on an evaluability assessment conducted by outside consultants and the input from evaluation experts, Federal/Provincial/Territorial Ministers Responsible for Social Services are reviewing an evaluation plan for the NCB. This plan will examine the impact of the NCB in terms of meeting its objectives, and look at best practices regarding programming for families with children.

The federal Department of Indian Affairs and Northern Development (DIAND) is undertaking a separate evaluation of the NCB with First Nations that deliver social assistance which is comparable and coordinated with the overall federal/provincial/ territorial evaluation. The scope of reinvestment programs and the unique circumstances of First Nations’ communities within Canada require a separate reporting and evaluation framework for the NCB. The evaluation process is being developed through DIAND in partnership with First Nations and focuses on providing relevant and timely information to assist First Nations communities and DIAND to effectively monitor the initiative.

The third component of the NCB accountability framework is research. This research will complement evaluation by focusing on such issues as the poverty dynamics surrounding families with children.

Building on evaluation, research, and feedback from stakeholders and the public, the NCB will continue to evolve in order to best meet its objectives of preventing and reducing the depth of child poverty, promoting attachment to the workforce, and reducing overlap and duplication.

Conclusion: With a commitment by Federal/Provincial/Territorial NCB partners to long-term stable funding, the NCB is assured of an important place in the Canadian social policy landscape. The NCB supports the goals of the broader National Children’s Agenda, advancing such goals as improving the economic security of families of children and enhancing early childhood development. Federal/Provincial/Territorial Ministers Responsible for Social Services believe that the NCB is the right way for Canadian governments to work together on matters important to Canadians.

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For more information, contact:
Robert Mundie
Human Resources Development Canada
(819) 997-5133
Michelle Whelan
Nova Scotia Community Services
(902) 424-4326

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¹ Quebec, while agreeing with the basic principles of the National Child Benefit, has not taken part in the development of the initiative because it wishes to assume control of income support for the children of Quebec. Consequently, any reference to joint federal/provincial/territorial positions in this statement does not include Quebec.