A new benefit allows thousands of Canadian students to receive extra cash from the government every month this year.
On Wednesday, Minister of Seniors Joanne Thompson announced new benefits available for part-time students whose parents are disabled or deceased and contributed to the Canada Pension Plan (CPP).
As of January 1, 2025, eligible part-time students aged 18 to 24 will receive 50 per cent of the amount paid by the CPP to full-time students.
This is a monthly flat rate of $150.89 in 2025 for part-time students who qualify for the benefit. Students must show a minimum school attendance threshold to be eligible for the extra cash.
“The rising costs of living are affecting us all. No child should have to choose between caring for their parents and going to school,” said Thompson in a statement. “By regularly evaluating the impact of the CPP on Canadians, we are taking the needs of students seriously and providing them with the tools they need to have a secure future.”
CPP children’s benefits provide financial support to under-18, dependent children of disabled or deceased parents that parents would typically provide. These benefits help cover some of the cost of their education.
Employment and Social Development Canada (ESDC) estimates this new benefit will immediately help 6,712 eligible students in 2025.
The benefit is part of the CPP reforms announced in the Fall Economic Statement and Budget 2024 following the conclusion of the Triennial Review, which is when federal, provincial, and territorial ministers of finance meet to review the plan to make sure it’s still meeting the needs of Canadians.
Other amendments to the pension plan that took effect on January 1 include adding a top-up to the death benefit for certain contributors, extending eligibility for the Disabled Contributor’s Child’s Benefit when a parent reaches age 65, and ending the entitlement to a survivor’s pension following a CPP credit split.
You can apply for the new part-time student benefit here.