Starting July 20, middle-class and low-income families across the country will get more money from the federal government.
It is the second time there has been an increase to the Canada Child Benefit since it was implemented in 2016. The first time it was raised was in 2018. This time around, the average family with two children will get an extra $30 on top of the roughly $700 they already receive each month. The increase is designed to keep up with the rising inflation rates, according to Jean-Yves Duclos, the minister of Families, Children and Social Development.
"We knew [the child benefit] would be good for middle-class families and we also knew it would help grow the economy and that's exactly what happened," said Duclos. "Everything goes up, every price goes up and [adding to the benefit] is what we are pleased to do again for the second time in two years."
The federal government's decision is adding about $23 billion to the federal budget.
The benefit can be claimed for any extracurricular activities, said Duclos.
"More importantly it's a cost that is better invested than the earlier complicated system, which also benefitted millionaire families," said Duclos. "We have nothing against millionaire families but they don't expect, they don't ask, and they don't need help from the federal government."
Focusing the program to middle-class families like the ones in southwestern Ontario is an absolute necessity, added Duclos. He claimed the increases have helped to reduce child poverty by roughly 40 per cent.
Examples of the new indexation rates for the upcoming 2019–20 benefit year:
- A single-parent family with one child aged under the age of 6 and earning $25,000 will receive an additional $143, bringing their new yearly total benefit to $6,639.
- A two-parent family with two children aged 4 and 9 and earning $55,000 will receive an additional $354, bringing their new yearly total benefit to $9,017.
- A two-parent family with two children under the age of 6 earning $90,000 will receive an additional $263 for the upcoming benefit year, bringing their new yearly total benefit to $7,090.
