Poverty is the state of having few material possessions or little families with children, and the Child Disability Benefit (CDB), a monthly benefit for families caring for children with severe and prolonged mental or physical disabilities
A physical disability is a limitation on a person's physical functioning, mobility, dexterity or stamina. Other physical disabilities include impairments which limit other facets of daily living, such as respiratory disorders, blindness, epileps ...
.
History
The CCTB was enacted in response to a commitment made by the Canadian parliament, in November 1989, to eradicate
The word "Eradication" is derived from Latin word "radix" which means "root". It may refer to:
*Eradication of infectious diseases (human), the reduction of the global incidence of an infectious disease in humans to zero
*Eradication of infectiou ...
child poverty in Canada by the year 2000.[Garcia, Miguel Roberto Sanchez (2002). ]
Targeting child poverty in Canada
' (Ph.D. Dissertation) Wilfrid Laurier University
Child Tax Benefit (CTB, 1993–1998)
The federal finance minister, Don Mazankowski
Donald Frank Mazankowski (July 27, 1935 – October 27, 2020) was a Canadian politician who served as a cabinet minister under prime ministers Joe Clark and Brian Mulroney, including as deputy prime minister under Mulroney.
After retiring fro ...
, announced in the 1992 Canadian federal budget
The 1992 Canadian budget was a Canadian federal budget for the Government of Canada presented by Minister of Finance Don Mazankowski in the House of Commons of Canada on 25 February 1992. It was the fourth budget after the 1988 Canadian federal ...
the introduction in January 1993 of a renewed and enriched ''Child Tax Benefit'' (CTB) that consolidates the family allowance, the child credit and refundable child tax credit into a unified benefit of $1,020 per child (with a supplementary benefit of $75 for the third child and following children). Unlike family allowance that it replaces, this monthly payment is not taxable for the recipient. This measure was estimated to increase benefits by $2.1 billions over a period of five years.
Working Income Supplement (WIS)
The new benefit includes an ''earned-income supplement'' (referred to as the ''Working income supplement'' or WIS in future federal budgets) of up to $500 (per family) designed to deliver increased benefits for low-income working families with children. The supplement phases-in at 8% of earned income above $3,750 ; reaches its maximum amount ($500) between $10,000 and $20,921 of earned income and is subsequently reduced by 10% of earning income above $20,921 (i.e. is fully exhausted at $25,921 of earned income).[C and D parameters of section 122.61(1) of the ''Income Tax Act'', as read after the changes brought forward b]
S.C. 1992, ch. 48
The law implementing the new benefit is adopted by the House of Commons in September 1992 and received royal assent on 15 October 1992.[''An Act to amend the Income Tax Act, to enact the Children's Special Allowances Act, to amend certain other Acts in consequence thereof and to repeal the Family Allowances Act'']
S.C. 1992, ch. 48. Canada Gazette
The ''Canada Gazette'' (french: Gazette du Canada) is the official government gazette of the Government of Canada. It was first published on October 2, 1841. While it originally published all acts of the Parliament of Canada, it later also publ ...
, Part III, vol. 15 (1992), n°4. (pages 1351 and following) The National Council on Social Welfare supported the reform as a ''step in the right direction'' but pointed out that most families receiving social assistance payments or unemployment insurance payments would not be eligible to the ''earned-income supplement'', hence reducing the impact of the new benefit in reducing child poverty.
However, it has been found that, due to cutbacks to social assistance
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
, the impact of this program in reducing child poverty
Child poverty refers to the state of children living in poverty and applies to children from poor families and orphans being raised with limited or no state resources. UNICEF estimates that 356 million children live in extreme poverty. It's est ...
is negligible.
Canada Child Tax Benefit (CCTB, 1998–2016)
The federal finance minister, Paul Martin
Paul Edgar Philippe Martin (born August 28, 1938), also known as Paul Martin Jr., is a Canadian lawyer and politician who served as the 21st prime minister of Canada and the leader of the Liberal Party of Canada from 2003 to 2006.
The son o ...
, announced in the 1997 Canadian federal budget the gradual replacement of the ''Child Tax Benefit'' by a new ''Canada Child Tax Benefit'' (CCTB) that combines the CTB and the WIS into a single enhance payment to increase benefit levels for low-income families. The roll-out of the CCTB was scheduled in two steps:[Working Together Towards a National Child Benefit System](_blank)
February 18, 1997. p.18–22
* First in July 1997 with the increase of the WIS;
* Secondly on July 1, 1998 with the enactment of the new Canada Child Tax Benefit.
Enhancement of the WIS (1997)
The WIS was greatly enhanced following the passage of the 1997 Canadian federal budget:[''Budget Implementation Act'', 1997]
S.C. 1997, ch. 26, s. 80
* The WIS is computed on a per-child basis rather than a per-family basis;
* Maximum benefit level is raised to:
** $605 for the first child;
** $405 for the second child;
** $330 for any additional child.
* Phase-in is faster so that the income level at which the benefits are maximized remains $10,000.
* Phase-out is also faster (12.1% for one-child families, 20.2% for two-child families and 26.8% otherwise) but the income level at which the benefits are entirely exhausted remains $25,921.
Enactment of the CCTB (1998)
Under the new system, the CCTB have two main components:
* The base benefit (that replaced the CTB) that is available to families with income up to $67,000.
* The NCB supplement (that replaced the WIS) targeted towards low-income families (up to $25,921).
Benefits under the CCTB are increased to provide up to $1,625 for the first child and $1,425 for each additional child (this level of benefits applies to family with income up to $20,921).[Budget Papers 1998](_blank)
p.110
The 1999 Canadian federal budget increased the NCB supplement by $350 ($180 in July 1999, $170 in July 2000) and the income level where the base benefit starts to phase out and the NCB supplement fully phases out increased from $25,921 to $29,590 by July 2000.[Canada Child Tax Benefit: Update](_blank)
February 1999. p.3–4
The reform is part of a proposed National Child Benefit (NCB) System based on collaboration between federal, provincial and territorial governments whereas the federal government strengthen the federal benefit and provincial and territorial government can provide additional benefits and services to low-income families.
Universal Canada Child Benefit (UCCB, 2006–2016)
Following the 2006 Canadian federal election, the new conservative government Conservative or Tory government may refer to:
Canada
In Canadian politics, a Conservative government may refer to the following governments administered by the Conservative Party of Canada or one of its historical predecessors:
* 1st Canadian Mi ...
led by Stephen Harper created the Universal Canada Child Benefit (UCCB), a new benefit of up to $1,200 annually for children under 6. Unlike other benefits, the UCCB is a taxable payment that is included in the recipient income.
The ''Universal Child Care Benefit Act'' received royal assent on 22 June 2006 and the UCCB was paid for the first time in July 2006.[''Universal Child Care Benefit Act'']
S.C. 2006, c. 4
In the 2010 Canadian federal budget
The Canadian federal budget for the 2010-2011 fiscal year (April 1, 2010 - March 31, 2011) was presented to the House of Commons of Canada by Finance Minister Jim Flaherty on March 4, 2010 after returning from a two-month prorogued parliament.
...
the UCCB was made shareable between shared-custody parents, and in that instance the payment was evenly split between parents (each receiving $50 per month). The measure entered into force in July 2011.[''Sustaining Canada’s Economic Recovery Act'']
S.C. 2010, c. 25, s. 74 and 75.
A significant expansion of the UCCB was announced in November 2014 in the Fall Fiscal Update:
* The UCCB amount for children under 6 would be increased from $1,200 to $1,920 on an annual basis;
* The UCCB would be extended to children aged 6 through 17 with a yearly benefit of $720. That new benefit would replace the Child Tax Credit starting in 2015.
The changes were incorporated in the ''Economic Action Plan 2015 Act, No. 1'' which received royal assent on 23 June 2015 and entered into force on 1 July 2015 (even though the new amounts were enacted as of 1 January 2015).
S.C. 2015, c. 36, s. 36-37 and 40.
S.C. 2016, c. 7, s. 53
Canada Child Benefit (CCB, since 2016)
Canada Child Tax Benefit was eliminated in 2016 and replaced by the Canada Child Benefit (CCB), a tax-free payment targeting low- and middle-income families; those with incomes higher than $150,000 will receive less than the previous system. In 2018-19 benefit year, the CCB payments are up to $6,496 per year per child under the age of 6, and up to $5,481 per year per child aged 6 to 17 in benefit year 2018-19. The CCB is income-dependent; the first income threshold for families to receive Canada Child Benefit is $30,450 and the second threshold is $65,975 in 2018-19. Since its inception, the Canada Child Benefit has lifted about 300,000 of children out of poverty, and has helped reduce child poverty by 40% from 2013 to 2017. The budget for Canada Child Benefit has been increased in 2019, increasing the annual benefit to a maximum of $6,639 for children under 6 and $5,602 for ages 6 through 17, allowing parents to provide more due to the increased cost of living.
Canada Child Benefit payment dates in 2022
The Canada Child Benefit is a tax-free monthly payment made to eligible families to help them with the costs of raising children. The benefit is paid to the primary caregiver, which is usually the mother, and is based on the number of children in the family and the family’s income. Families can use the benefit to help pay for child care, food, clothing, and other expenses.
See also
*Basic income
Universal basic income (UBI) is a social welfare proposal in which all citizens of a given population regularly receive an unconditional transfer payment, that is, without a means test or need to work. It would be received independently of a ...
*Child benefit
Child benefit or children's allowance is a social security payment which is distributed to the parents or guardians of children, teenagers and in some cases, young adult (psychology), young adults. A number of countries operate different versions o ...
* Guaranteed minimum income
References
Acts of Parliament
Other references
External links
Information about CCB
from Canada Revenue Agency
The Canada Revenue Agency (CRA; ; ) is the revenue service of the Canadian federal government, and most provincial and territorial governments. The CRA collects taxes, administers tax law and policy, and delivers benefit programs and tax cre ...
.
What you need to know about the CCTB
from The Globe and Mail
''The Globe and Mail'' is a Canadian newspaper printed in five cities in western and central Canada. With a weekly readership of approximately 2 million in 2015, it is Canada's most widely read newspaper on weekdays and Saturdays, although it ...
.
Ottawa on lookout for child benefit fraud
{{Income taxes in Canada
Child Tax Benefit
Childhood in Canada
Federal assistance in Canada