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Federal child benefit sees modest increase

Tuesday, July 20, 2021 @ 3:03 PM | By Terry Davidson

Canada’s government is providing a slight increase to its child benefit for lower income families.

On July 20 it was announced that the maximum annual amounts for the Canada Child Benefit (CCB) will now be $6,833 for each child under age 6, and $5,765 for each child between 6 and 17.

The increase reportedly equates to a one per cent rise compared to the previous benefit year — or around $5 more per month.

With this, eligible families are reportedly seeing the lowest annual increase in the benefit since payments were tied to inflation — a reflection on the COVID-19 health crisis and its impact on price growth over the past year.

It was in July 2018 that the CCB was indexed so that changes to the benefit’s maximum amounts reflect the rising cost of living.

“Every child deserves the best possible start in life,” said Minister of Families, Children and Social Development Ahmed Hussen in a news release. “Today, we celebrate five years of providing more support for parents through the [CCB]. I have heard from so many Canadian parents how much it means to be able to rely on extra help every month, especially in these challenging times. The government of Canada will continue to take action through initiatives like the CCB that put families and children first.”

As per usual, the amount of tax-free benefit a family receives is tied to net income.

According to the release, the CCB has provided almost $25 billion to around 3.5 million families since being introduced five years ago.

A request made to Employment and Social Development Canada for greater clarity and additional information was not immediately answered.

This past May, eligible families with kids under age 6 and eligible saw a temporary $1,200 “young child supplement” to the CCB — a response to continued economic pressures caused by the pandemic.

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