Economist says Canada Child Benefit could be better

As of Saturday, the Canada Child Benefit from the federal government will be a little larger.

Last year, it was announced the benefit would be indexed to inflation. The rise this month is about 2.2 per cent on the maximum benefit per child.

The maximum benefit for children under six will go up to $6,639, an increase of about $143, while the maximum benefit for children between six and 17 will go up to $5,602, an increase of about $121.

“Any time you see a benefit like this raised it’s not a bad thing for the recipient, but we’re not talking big dollars here,” said Jason Childs, a professor of economics at the University of Regina.

Childs isn’t convinced direct payments like this are as effective as some people like to believe. He said it’s not guaranteed the money will end up benefitting the child specifically.

He said something like this will be effective for parents who are struggling a bit, but are focused on their kids, to begin with.

“The children that are in real trouble because of a parent who’s distracted or absent or what have you, it’s not going to do a whole lot for them, and that’s where I think the real problem is,” explained Childs.

Childs referenced a program in Brazil which used to require parents to show some actions before they would get paid — things like the kids going to a doctor, getting their vaccinations, and going to school. Childs thinks that would have a bigger impact on improving children in poverty’s lives, but he acknowledged many people wouldn’t appreciate that amount of government interference in their lives.

The change that will have a bigger impact for kids will be the simplified application process the federal government is implementing this month, according to Childs.

“If that allows people who weren’t accessing the program before who were eligible to get it and to get those dollars, that’s the real story.”

The federal government made the change after concerns were brought up about barriers newcomers and Indigenous parents were facing in accessing the benefit.

In a news release from Sask. MP Ralph Goodale’s office, it mentioned that 300,000 children have been lifted out of poverty since the introduction of the Canada Child Benefit.
However, Childs is wary of attributing the change to the benefit, saying it could have been a number of things like improvements in the economy or the reduction of unemployment rates.

Child poverty is a problem in Saskatchewan. According to a report from the University of Regina last year, using numbers from 2016, the child poverty rate in the province was at 26.7 per cent, the third-highest among the provinces and territories.

Goodale’s news release said 118,000 families with 230,000 children in Saskatchewan receive the Canada Child Benefit, adding up to almost $1 billion.