Personal Finance

Canada’s child allowance gets smallest annual increase on record this year – National

The Trudeau government adopted Twitter and Instagram to announce an increase in Canada’s Child Allowance (CCB) on Tuesday, amid speculation that federal parties are preparing for a national election later this year.

But Canadian families will see the lowest annual increase in the federal child benefit since payments were indexed to inflation, as a result of low price growth as economic growth took a hit during the COVID-19 pandemic. .

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This year, families will receive a maximum of $ 6,833 per child for children under the age of six and $ 5,765 per child for children over 18 years of age.

The total value of payments will only increase by one percent compared to the previous year, in line with the country’s headline inflation reading, or about $ 5 more per month, per child.

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Social Development Minister Ahmed Hussen says the benefit itself has had an impact on poverty rates and families facing a financial crisis.

Click to Play Video: 'Government Increases Canada's Child Benefit for Children Under 6 - Trudeau'

Government increases Canada’s child allowance for children under 6: Trudeau

Government Increases Canada Child Benefit for Children Under 6: Trudeau – May 28, 2021

The additional payments should push the overall benefit price to more than $ 27 billion this fiscal year before falling next year with no one-time payments from COVID-19 increasing the overall bill.

In May, the government announced a CCB supplement of up to $ 1,200 in 2021 for families with children under the age of six. Households with young children who are eligible for the CCB and have a net income of $ 120,000 or less would receive four payments of $ 300 per child, the government said.

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The temporary supplement, intended to help soften the financial impact of the COVID-19 pandemic on family budgets, would reach around 1.6 million households and 2.1 million children under the age of six.

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The first installment of the supplement, which included payments for both January and April, was issued on May 28. The last two payments will be issued on July 30 and October 29, 2021.

The government says that since its introduction in 2016, the CCB has lifted some 435,000 children out of poverty.

With archives of the Canadian press

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