Seeing the Possibilities

The National Child Benefit
An important investment in Canadian families

The National Child Benefit gives families the support they need to provide a better life for themselves and their children. It is a unique initiative for Canadian families who need help most.

A joint effort between federal, provincial and territorial governments and First Nations, the National Child Benefit provides essential income supplements and services to modest income families. This builds on the $7 billion in income support that the Canadian government already provides each year to families with children.

The National Child Benefit aims to prevent and reduce the depth of child poverty and help low income parents stay in jobs by ensuring that when parents leave welfare for work, they keep benefits and services for their children.

A positive, permanent step to reduce child poverty.

More and more, people understand that childhood experiences influence success and happiness later in life. Many factors influence these experiences, including parenting, income, family and community supports, and social services. Families living on lower incomes often face particular challenges in meeting the needs of their children. Financial support, social services and early intervention can help address some of the difficulties that might otherwise lead to the need for costly services and negative experience later in life.

Through the National Child Benefit, Canadian governments are helping to make sure children get the best possible start to life.

For Nancy H. of Nova Scotia, housing and daycare costs alone were eating up all her take-home pay. She considered leaving her job, removing her daughter from daycare, and going on social assistance. Through the NCB, the Nova Scotia government created more subsidized daycare spaces. “It has enabled me to stay at work, not be stressed out and stay in daycare,” Nancy explains. “Knowing that she’s secure when I leave is priceless.”

Helping families move from welfare to work without looking back.

Families receiving social assistance often find it difficult to move from welfare to work without losing benefits for their children. Compared to families on welfare, low income working families may not be eligible for benefits and services provided through social assistance, such as dental and prescription drug coverage. Wages earned through employment are not always enough to compensate for lost benefits and pay for costs associated with employment such as transportation, child care and work clothing.

By providing additional financial supports to help parents stay in the workforce, the National Child Benefit is helping to ensure that modest income families will be better off working.

A B.C. reinvestment initiative under the NCB since April 1998, the B.C. Healthy Kids Dental Van has been travelling to rural B.C. communities where access to routine dental care is often limited. The husband and wife dental team saw more than 600 patients – 419 were children – in less than six months. They related this story: “In Vanderhoof, we saw a young woman with wall-to-wall gumline cavities. She was embarrassed, in pain and had no money. We treated her over the course of several appointments, and she always seemed shy, almost sullen. On our next visit, she dropped by with a friend to bring us a thank you card. Even better than the card, her friend told us, ‘Everyone calls her “Smiley” now!’ In all the time she had lived there, few people had ever seen her smile.”

The National Child Benefit

The Government of Canada is increasing direct income support for lower income families through the Canada Child Tax Benefit. This helps families with the costs of raising their children, and makes it easier for parents to support their families.

With the National Child Benefit, modest income working families will now have access to more programs and services offered by the provinces and territories.

Through the National Child Benefit, provinces, territories and First Nations are investing in new and expanded programs and services that meet the needs and priorities of families in their communities, such as child care and health programs. Many have also invested additional funds of their own to complement and enhance their National Child Benefit reinvestment initiatives.

How the National Child Benefit works

In July 1998 the Government of Canada introduced the National Child Benefit Supplement (NCBS) to the Canada Child Tax Benefit (CCTB), providing additional support to 1.4 million Canadian families with children. In July 1999, the maximum supplement was increased by $180 per child per year.

As of July 2000, the National Child Benefit Supplement will increase by another $192 per year for the first child, $186 for the second child and $184 for the third and each additional child. Families earning up to $21,214 will qualify for the maximum NCBS. Families with income between $21,214 and $30,004 will qualify for the maximum basic Child Tax Benefit and a partial NCBS.

Maximum Annual Benefits — July 2000

^*Recipients in Alberta receive different maximum amounts depending on the age of their children.

Flexible help where it will do the most good.

Flexibility is an important aspect of the National Child Benefit partnership. Provincial and territorial governments and First Nations are able to deliver the NCB in ways that best respond to their regional needs and priorities, including:

• Child Benefits and Earned Income Supplements – cash benefits to help with the added costs of employment.
• Child Care – more spaces and/or reduced child care costs for working families on a modest income.
• Early Childhood Services and Children-at-Risk Services – early intervention programs to give children a healthy start, including nutrition, prenatal screening, recreation and youth community programs.
• Supplementary Health Benefits – including coverage of dental, prescription drugs and optical care for children in low income working families.

Provincial,Territorial and First Nations National Child Benefit Initiatives

 

Child benefits and earned income supplements $154.4 million

 

Child/day care $172.4 million

 

Other $103.6 million

 

Supplementary health benefits $20.5 million

 

Early childhood services and children-at-risk services $49.6 million

Total: $500.5 million

Who is eligible?

You are eligible to receive the National Child Benefit Supplement if your income is lower than $30,004 and you meet these requirements:

• You have one child or more under 18 years
• You have applied for the Canada Child Tax Benefit
• You have filed a tax return for last year

If you have applied for the Canada Child Tax Benefit and have filed a tax return for last year, you don’t need to do anything else. Benefits are calculated automatically based on your (and your spouse’s) tax returns.

If you haven’t applied for the Canada Child Tax Benefit, contact your local Canada Customs and Revenue Agency Office or call 1-800-387-1193 (English) or 1-800-387-1194 (French).