Fiscal Analysis of Federal Children’s Benefits

Get the report
Fiscal Analysis of Federal Children’s Benefits.pdf

Get the data 

On July 1, 2016, the federal government introduced a new tax-free Canada Child Benefit (CCB) in place of an old framework of children’s benefits.

The new benefit replaced the Universal Child Care Benefit (UCCB), the federal Canada Child Tax Benefit (CCTB) and the federal National Child Benefit Supplement (NCB).

PBO estimates that in 2016-17, payments under the new system will cost the Government $3.4 billion more than those under the old system. By 2020-21, this net fiscal cost would decline to $2.5 billion.

Over time, inflation will reduce the real value of the monthly CCB payments.  PBO estimates that by 2024-25, total net spending on the Canada Child Benefit is projected to fall to that of the old system of children`s benefits, had it not been repealed.

Distributional analysis indicates families will see their average payments increase by $1,858. However this varies by family income. Families with adjusted net income below $30,000 will receive the largest payment under the new system on average.