Parents who receive the Canada Child Benefit (CCB) will see an increase in monthly inflation-linked benefits starting this month with an annual increase.
The CCB is recalculated each July based on the previous year’s family net income.
That’s a 6.3% increase this year, according to the federal government, which means households can receive up to $7,437 for each child under the age of 6 and up to $6,275 for each child between the ages of 6 and 17.
Prime Minister Justin Trudeau said at a summer camp in Kingston, Ontario, that the government touted the payments as a way to help Canadian families deal with the cost of living. Thursday, the scheme has lifted children out of poverty since it was first implemented.
“Seven years ago we introduced child benefits in Canada,” he said. “Hundreds of dollars are tax-free each month to help with the high costs of raising children, impacting families around the world.”
The federal government said there will be about 653,000 fewer children living in poverty in 2021 than when the Liberals took power in 2015 and when the CCB took effect in 2016, but slightly more during the COVID-19 pandemic.
And Statistics Canada’s 2021 Census data show that poverty is declining across all age groups, but child poverty is particularly declining, with all age groups under 18 falling to more than half of 2015 levels.
Canada’s inflation rate fell to 2.8% in June after peaking at 8.1% this time last year, and Prime Minister Trudeau praised the CCB as an example of how the federal government, along with dental, grocery and rent benefits, is helping tackle cost of living amid record inflation last year.
Although the benefit increase was pre-planned, the Federal Liberals continue to face criticism from the Conservatives for continuing to spend, especially in times of high inflation.
Karina Gould, Minister of Family, Children and Social Development, also issued a statement today marking the seventh anniversary of the payment.
“The Canadian Child Benefit is one of the most important programs our government has introduced,” Gould wrote. “It has enabled Canadian families to pay child support for children under the age of 18, which is vital to their well-being and economic growth.”
The federal government provides an online calculator to determine how much each household is entitled to, and payments are administered through the Canada Revenue Agency.