For the past five years, the Canada Child Benefit (CCB) has helped lift 435,000 children out of poverty by providing approximately $25 billion each year in tax-free support to about 3.5 million families. The global COVID-19 pandemic has added a wide range of unpredictable expenses for Canadian families. That’s why the Government of Canada has taken action, through the CCB Young Child Supplement, to help parents cope with the pressures of the pandemic, make life more affordable for families, and grow the middle class.
Today, the Honourable Ahmed Hussen, Minister of Families, Children and Social Development, highlighted additional temporary support in 2021 through the CCB Young Child Supplement for families with children under the age of six. A payment of up to $300 for each child under the age of six will be issued today to families entitled to the CCB. This measure will benefit approximately 1.6 million Canadian families and approximately 2.1 million children under the age of six.
Through this measure, parents will receive a total of up to $1,200 for each child under the age of six in addition to regular CCB payments in 2021. The first and second CCB Young Child Supplement payments of up to $600 combined were issued on May 28, 2021. The third payment was issued today, and the final payment will be issued on October 29, 2021.
As part of today’s measure, families entitled to the CCB for a child under the age of six with a net income of $120,000 or less in 2020 will receive one tax-free payment of $300 per child. Families entitled to the CCB for a child under the age of six with a net income above $120,000 in 2020 will receive one tax-free payment of $150 per child.
The Government of Canada has also raised the regular CCB, for the fourth year in a row, starting on July 20, 2021, to help parents keep up with the rising cost of living and to better provide for their children. For the 2021-22 benefit year, the maximum annual CCB is $6,833 per child under the age of six and $5,765 per child aged six through 17, representing over $350 more per child than when the CCB was first introduced in 2016.
As we finish the fight against COVID-19 and build back better for everyone, the Government of Canada will continue to provide extra support to Canadian families to help them afford healthy food, short-term child care, and at-home learning activities.
“Having young children at home during the COVID-19 pandemic has been challenging for many families. Parents should never have to make the impossible choice between paying bills and putting food on the table. These additional supports for families through the Canada Child Benefit will help us weather the storm together as we build back a stronger, more prosperous Canada.”
– Minister of Families, Children and Social Development, Ahmed Hussen
“We know that family life has been made more stressful by the COVID-19 pandemic and the recovering job market. I am delighted that our government continues to support families and vulnerable Canadians. I know these benefits have had, and will continue to have, a positive impact in the lives of our children.”
– Minister of National Revenue, Diane Lebouthillier
Thanks to the Canada-wide early learning and child care agreements the Government of Canada recently signed with British Columbia, Nova Scotia, Yukon, Prince Edward Island and Newfoundland and Labrador, more families with children under six will have access to $10/day early learning and child care within the next five years.
The CCB is a simple, tax-free monthly payment based on income, and provides increased support for those who need it most, to help with the cost of raising children under 18 years of age.
The Government of Canada indexed the CCB for the first time in July 2018. This indexation means that the maximum benefit amounts and income thresholds at which benefits begin to be reduced are increased.
As an added measure in May 2020, the government delivered almost $2 billion in additional support through a special, one-time top-up of the CCB of up to $300 per child, benefitting approximately 3.7 million families.
The CCB Young Child Supplement payments that were made on May 28, 2021, for each of the first two quarters – January and April – were based on the family net income for 2019.
Today’s payment and the October payment are based on the family net income for 2020. This may mean that payment amounts differ for some families midway through the year.
Families that already receive the CCB will not need to take any action to receive supplement payments. However, families do need to file their 2019 and 2020 tax returns to access them.
Families that have not yet filed for either year could still be entitled to receive the CCB and the CCB Young Child Supplement by filing their income taxes as soon as possible.
Agencies that receive children’s special allowances (CSA) payments will also receive the tax-free CCB Young Child Supplement equivalent payments of $300 for each child under the age of six for whom the CSA is paid in January, April, July, and October 2021.