Canada has increased the amount eligible families can get under the Canada Child Benefit (CCB) program, but with rising food and housing costs, will it realistically help families make ends meet?
According to Statistics Canada’s latest Consumer Price Index, general inflation fell to 2.8% in June, but grocery prices rose year-over-year by a disappointing 9.1%. Many fear they will not stop climbing any time soon.
Statistics Canada reported that shelter costs also rose in June compared to May. And with the Bank of Canada increasing its key interest rate to 5% earlier this month, more families are worried about making their mortgage payments.
A near-record number of Canadians are worried about bankruptcy, and more than half of Canadians say they’re $200 or less away from being unable to pay their bills.
The new benefit year began on July 1, and the first CCB payments went out on Thursday.
The maximum annual child benefit per kid under six has increased by $440, going from $6,997 to $7,437. The amount per child aged six through 17 also increased from $5,903 to $6,275 — an extra $372 a year.
But will a few hundred extra bucks be sufficient to battle the cost of living crisis? We talked to Minister of Families, Children, and Social Development Karina Gould.
“I think it’s a huge help to families,” she began.
“You know, the CCB is going up by 6.3%, which, in many cases, will be an additional $500 per child for lower-income families this year. That’s going to be a huge help for the lowest-income families. It’s going to make a difference.”
Gould noted that, in comparison, eligible families received a maximum of almost $7,000 per child under six last year.
She added that inflation may be below 3% now, but when the feds use indexation methods to calculate new CCB maximums each benefit year, they consider an average of the past 12 months.
“This is a very substantial increase to the CCB. From my conversations with folks across the country, I know how vital the CCB is, and this increase will make a real difference for them.”
Gould also highlighted the government’s one-time grocery rebate payments for lower-income individuals and families.
These payments went out on July 5, but the program drew ire for being a “band-aid” solution.
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