The Liberal government announced quietly that it was tweaking the Child Benefit budget in Canada. This change will result in low-income families seeing their CCB cheques reducing by around $500 per child over the next four years.
By 202, all low-income families will effectively earn around $6.50 a month in current dollars as compared to what they would have received through the various advantages offered by the previous Harper government.
This is even though the Liberals have been saying that their CCB is an improvement over Harper’s, and would help lift 315,000 children from poverty.
This is because a measure which was shelved by the government this Tuesday confirmed that the CCB is going to be tied with inflation. This move has been designed for stopping the benefits from weakening in the long run.
This problem had been flagged previously by the Budget Office which said the CCB would not be able to keep up with inflation.
Researchers at Caledon wondered why Liberals were patting themselves on the back for policies which lead low-income families to square one.
Middle-income families who have one child are only going to see their cheques reduce by around $300 in current dollars. The families need to get better deals as compared to what they would have got under the previous Harper plan.
Despite saying that the CCB was a way to lift children from poverty, low-income families are going to see most of their gains getting eliminated.
The Liberal platform for 2015 proudly announced that low-income families with a single child were going to receive$6,400 which is $575 more than what they were getting under the Harper plan.
By 2020, because of inflation, their CCB cheque will look more like around $5,903 in current dollars which is $87 more than they would have been receiving under Harper’s plan, not $575.
For low-income children, the difference between the Liberals and Conservatives works out to $6.50 a month.