The Canada Child Benefit (CCB), since being implemented 4 years ago, has helped lift nearly 435,000 children out of poverty. Families entitled to the CCB with children under the age of six can now expect to receive a bit more money this year. The Honourable Diane Lebouthillier, Minister of National Revenue and the Honourable Ahmed Hussen, Minister of Families, Children and Social Development announced on May 12, 2021, that the CCB Young Child Supplement (CCBYCS) will take effect later this month.
In the November 2020 Fall Economic Statement, the Government of Canada proposed an additional supplement be offered to families entitled to the Canada child benefit (CCB) with children under the age of six for the year 2021, to provide relief during Canada's recovery from COVID-19. The CCBYCS is part of Canada's Building Back Better plan to support Canadians during this period of recovery.
Families could receive up to $1,200 in support per child under the age of six in 2021. About 1.6 million Canadian families and 2.1 million children under the age of six will benefit.
In 2021, families that are entitled to receive the CCB with a net income of $120,000 or less, will receive $300 per payment for each child under the age of six. First payments will be issued on May 28, 2021, and will include both the January and April payments for those entitled to them. The final two payments will be issued on July 30 and October 29, 2021.
"The Government of Canada is committed to supporting all hard-working families and individuals across the country. Having raised my children as a working mother, I know the challenges that parents face when balancing the well-being of their children with economic necessity. This supplement will offer families with young children a significant reprieve from the pressures of the pandemic and offer them further opportunity for recovery and a return to a new normal for themselves and for their children." -The Honourable Diane Lebouthillier, Minister of National Revenue
If you already receive the CCB, you will not need to take any action to receive the payments. However, families do need to file their 2019 and 2020 tax returns to access them. Payments that will be made in May for each of the first two quarters – January and April - are based on the family net income for 2019. The July and October payments will be based on the family net income for 2020. This means that payment amounts may differ for some families mid-way through the year.
Families that have not yet filed for either year could still qualify for CCB and for the CCBYCS by completing their taxes as soon as possible.