Lump sum child care benefit of about $500 per child hits parents' bank accounts and mailboxes, totalling $3 billion in a single day
TIGNISH, PE, July 20, 2015 /CNW/ - The Honourable Gail Shea, Minister of Fisheries and Oceans and Member of Parliament for Egmont, celebrated the first installment of the Harper Government's boosted Universal Child Care Benefit (UCCB) today. The newly increased child care benefit pays almost $2000 every year for each child under 6 and $720 for each child aged 6 through 17. With a retroactive payment from January 1, 2015, the Harper Government transferred almost $3 billion to 3.8 million families today—the largest single-day direct payment to families in history.
Starting today, payments of $520 for each child under 6, and $420 for each child aged 6 through 17 will be delivered to families across Canada. That means a family with two kids should receive as much as $1,000 today. Parents can spend this money on anything they choose, including child care services, back-to-school supplies, sports activities and much more, boosting the economy and creating jobs across Canada.
About 3.8 million families will benefit from the boosted UCCB—double the number of families that previously qualified. While the majority of families in Canada are waking up to this welcomed boost to their bank accounts, an estimated 200,000 families may have missed out because they did not apply. Families that are not currently receiving the UCCB, that have never received the UCCB, or that have never applied for the Canada Child Tax Benefit and have children under 18 in their care are encouraged to go to www.canada.ca/taxsavings to find out how to apply.
In addition to the boosted UCCB, families recently received nearly $2 billion in tax refunds this spring through the Family Tax Cut. The Family Tax Cut allows couples with children under 18 to split their income and reduce their tax burden by as much as $2,000. Payments to families will also continue under the Child Tax Benefit, which remains unchanged.
- Approximately $12 million in UCCB payments was sent today to about 16,000 families in the province of Prince Edward Island.
- All families with children will benefit from the new Family Tax Cuts and Benefits Plan, which includes the Family Tax Cut, the increased UCCB, the Child Care Expenses Deduction and the Children's Fitness Tax Credit.
- The UCCB has increased to $160 per month from $100 per month for each child under the age of 6, and a new benefit of $60 per month has been introduced for each child aged 6 through 17.
- Combined with tax relief and other measures for families introduced by the Government of Canada since 2006, a typical family of four can receive up to $6,600 in tax relief and enhanced benefits in 2015.
- Approximately 1.2 million cheques were sent to families across Canada. The remaining UCCB payments were made via direct deposit, for a total of more than 3.8 million payments.
- Low- and middle-income families will receive two-thirds of the overall benefits provided by the Government of Canada's new family measures.
- The Family Tax Cut will eliminate or significantly reduce the difference in the federal tax payable by a one-earner couple relative to a two-earner couple with a similar family income.
"Today, moms and dads in PEI and from coast to coast to coast will be getting a welcome boost from the increased UCCB payment. Starting today, parents should check their mailboxes and bank accounts to make sure they received Prime Minister Harper's boosted child care benefit."
– The Honourable Gail Shea, Minister of Fisheries and Oceans and Regional Minister for Prince Edward Island
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SOURCE Canada's Economic Action Plan
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