Canada Child Benefit payments to increase on Monday

The Canada Child Benefit provides tax-free monthly payments to eligible families. (Pexels)

Starting Monday, eligible families in Canada will see an increase in their federal child benefit payments.

Families with children under six years of age will receive up to $8,157 per child and up to $6,883 per child for children aged between six and 17 years, a federal release shared on Friday.

That’s an increase of up to $160 per child younger than six years and up to $135 per child aged between six and 17 years, compared to the last year.

Families with an adjusted family net income of less than $37,487 will receive the maximum amount.

“Starting Monday, the Canada Child Benefit is going up for 3.6 million Canadian families,” Secretary of State Anne Gainey was quoted in the release. “This increased monthly payment will help cover everyday expenses like school supplies, clothing, and groceries. When we invest in kids, we’re investing in our future and building Canada strong.”

How are payments calculated

According to the release, the CCB is responsive to the costs of living and has been annually indexed to inflation since 2018.

Annual indexation takes effect on July 1, to coincide with the beginning of the payment year. The payment year runs from July 1 to June 30 of the following year.

The amount received depends on a few factors including the number and ages of children care and the prior year’s adjusted net income.

Individuals acting as the child’s primary caregiver must apply for the benefit.

Parents with shared custody of the child will each get half the amount they would have received if they had full custody.

Studies cited in the release have found that the CCB has had a significant impact on families by supporting single mothers, alleviating severe food insecurity in low-income families and made it easier for families to buy necessities like food, shelter and children’s clothing.