Maritime families got a bit of a financial boost on Wednesday with the implementation of the new Canada Child Benefit program
The cheques are meant to help low income households the most. The first payments of the new child benefit went out on Wednesday.
“I get a little bit more, which is helpful because I have three children in daycare,” says mother Erin Chisholm.
The Liberal government introduced the tax credit to simplify previous programs.
“Right now, parents will have a little more support in terms of getting healthy groceries, after school programs, and new clothes for their kids,” says Prime Minister Justin Trudeau.
Families earning less than $30,000 a year will get up to $6,400 a year, per child under six years old. After that, they will receive $5,400 a year until the child turns 17.
Children of single parents, like Heather Power, will also get a boost.
“Basically have a little fun this summer with it,” says Power. “Then, I’d like to start saving for my son’s education. It’s just a little bit extra that you weren’t expecting.”
The new child care benefit is tax free, so parents won’t have to claim it as income. As pleased as most peopleare, the changes are pricey and expected to cost Canadians $22.4-billion over five years.
“The new system, everyone’s portion will be based on taxes, so people have to make sure they do their taxes,” says senior financial advisor Darryl Smith. “Otherwise, they’ll never receive this money.”
Christine Saulnier critiques government policy. While she applauds the changes, she is wary the program could have an adverse effect.
“If the income brings people above a certain eligibility line, will it mean they won't access the child care subsidies they previously accessed, will it impact their transportation, will it impact any of the other subsidies, like pharma-care?” says Saulnier.
These questions will become clearer as the child benefit matures.
With files from CTV Atlantic’s Kelland Sundahl
