What is the Canadian Childcare Benefit?

The Canadian Childcare Benefit (CCB) is a federal program created by the Liberal Party under prime minister Justin Trudeau in 2016. This program assists families with the costs of raising children through the provision of a tax-free monthly payment to parents or guardians.

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In situations of shared custody, each parent or guardian receives 50% of the total monthly payment.

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The CCB superseded the Universal Child Care Benefit UCCB which was created by the Conservative party under prime minister Stephen Harper. Although these programs are similar in structure they differ in several respects.

1. The UCCB was taxable; the CCB is NOT
2. The UCCB applied only to families with children under six, whereas the CCB supports children 17 and under.
3. The UCCB provided a maximum of $1,200 per child annually, while the CCB offers up to $7,786 for children under six and $6,906 for those aged 6–17.

How Are Payment Amounts Calculated?

When parents register the birth of their newborns within their province or territory they become eligible for the CCB. Payments are calculated on an annual basis. The calculation is based on a family’s income in the last fiscal year and inflation.

The CCB is income tested meaning that payments are calculated based on a family’s adjusted net income (AFNI). The AFNI calculation takes into account how many children the family has, the ages of the children and the relationship status of the caregiver/caregivers. This structure promotes equity as lower income families receive larger payments while higher income families receive lower payments.

The amount a family receives per child is also adjusted to keep up with the rising cost of living. This adjustment means that in 2021 parents received over $350 more per child than when the policy was created in 2016. Furthermore, between from 2023 and 2024 payments went up an astounding 4.7 percent.

Payment Calculator Tool:

The Canadian Revenue Agency (CRA) offers a tool to families to find out what child related benefits they are eligible for and an estimate about much their payments may be.

🔨 CRA Child and Family Benefits Calculator

Who Distributes the Payment?

The CRA distributes the CCB payments on the 20th day of every month via government cheque. Families can opt to receive their cheque via mail or direct deposit.

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NOTE: If the total benefit for a child is less than $240 a year families will receive the payment as a lump sum in the month of July.

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How Much Money has the Federal Government Invested in This Program?

Each year the federal government provides almost $25 billion in tax-free support to approximately 3.5 million Canadian families. These funds are taken directly from the federal budget.