Minister Rebecca Alty says changes to the child benefits program came into effect Monday and could bring up to $165 dollars more per year in support for essentials per child. While child advocates agree the government supports remain critical, they say it no longer keeps pace with factors like the rising cost of living.
The minister said more than 4,000 families across the territory rely on the program each year to help put food on the table and pay for other daily needs.
Alty made the formal announcement from Yellowknife, on behalf of the Secretary of State Anna Gainey, for the welcomed increase initially made public last week.
The changes to the benefit could mean up to $165 more in support per child under the age of 6 years old and up to $135 more in support for each child between the ages of 6 to 17.
The increased rate comes into effect this month and commits up to $8,157, per child (per year) under the age of 6 and up to $6,883 for children ages 6 to 17.
The benefit program was first introduced in about eight decades ago in July of 1945 and has previously been known as the “youth allowance” or “baby bonus.” Since that time it has been aimed at helping households manage “everyday expenses” such as groceries, clothing and childcare.
Minister Alty said that in the N.W.T. alone, the program provides over $37 million in benefits to approximately 4,500 households each year.
According to a message released by the federal government, the program supports about 3.6 million families caring for 6 million children. Annually, it is estimated the program delivers $30 billion in tax-free payments to households across the country.
In the N.W.T. if a household’s net income is above $30,000, children are elligible to get “part” of the benefit.
Households with an adjusted family income reaching $80,000 are not eligible for the benefit.
According to findings of a report published earlier this year, the Canada Child Benefit prevented more than 580,000 children from falling into poverty in 2023, yet its impact has weakened over time.
Child poverty advocates say that while government supports remain critical they are no longer keeping pace with the cost of living.
Campaign 2000, a coalition of more than 120 community organizations from across the country, examined child and family poverty using the latest data available from 2023. Each year, for more than 35 years they have collected data and analyzed patterns of poverty across the country.
According to the data, in the N.W.T., a single parent with one child earns about $18, 700 dollars per year on average.
The researchers behind the report noted that to reach the poverty line, the single parent would need an additional $18, 695, about two times their income just to get to the poverty threshold.
The researchers also pointed out that food insecurity is also worsening, with 2.5 million children living in food-insecure households across the provinces and severe food insecurity doubling since 2019.
