Feds roll out new child care benefits in July

THUNDER BAY – The federal government’s new child care benefit will begin rolling out next month.

Monthly payments from the Liberal government’s new Canada Child Benefit, which was approved as part of the 2016 budget, will be made across the country beginning on July 20.

The benefit provides a sliding scale payout based on income tax filings, with maximum amounts of $6,400 per year for child under six and $5,400 per year for each child between the ages of six and 17 for families with incomes of less than $30,000.

MP Patty Hajdu (Lib., Thunder Bay-Superior North) said providing a benefit that allows families to maximize funding was a major campaign promise during last year’s election.

“It’s important to have an easy to access single credit like this because for one, people miss out on those credits if they don’t have someone helping them prepare their income tax or if they’re not good at it themselves. They may miss out on benefits they’re entitled to,” Hajdu said at a Friday afternoon media conference held at the Nanabijou Child Care Centre.

“Secondly, some of the benefits we saw under the previous government such as a child fitness credit, you actually had to spend the money first to get the rebate…This benefit actually eliminates some of those upfront costs for families and allows them to access those things they need right as they need them.”

Meagan Forbes, mother of a two-year-old-son, has had to step aside from work due to his health challenges, which have meant extra costs for her family.

The structure of the new benefit is particularly helpful for working parents, she added.

“Many people, including myself, I wasn’t even aware there were extra benefits to apply for,” Forbes said. “With our busy life schedules as parents, it’s really good to know we can cross the additional applications off our list and just be comforted to know it’s all in one tax-free benefit.”

Hajdu, also the minister of status of women, shared her story as a separated mother with two sons, having to rely on borrowing money to provide them with opportunities. She said a program like this new benefit would have had a major impact on her family.

While initiatives such as a national child care strategy are still in the developmental stage, this benefit provides families with versatility.

“We believe that families have the abilities to make choices that are relevant to them. What one family might need isn’t necessarily what another family might need,” Hajdu said.

“In the immediate term, what we felt was families have a variety of different situations and we wanted to make sure they could use the money in the way that would help them the most.”

MP Don Rusnak (Thunder Bay-Rainy River) said the previous benefit under the former Conservative government provided unnecessary reward for affluent families that didn’t require extra money.

He has heard across the riding there is a significant need for a tax-free child benefit.

“A lot of the smaller communities, including my riding within Thunder Bay, have a lot of people who are struggling. They’re struggling to make ends meet. This child benefit will help them pay the groceries, pay the bills at their home,” Rusnak said.