Inflation drove post-pandemic spike in Canada Child Benefit costs: PBO

OTTAWA — Ottawa’s fiscal watchdog says a surge in inflation a few years back drove a substantial jump in the cost of delivering the Canada Child Benefit after the pandemic.

The Office of the Parliamentary Budget Officer says the cost of delivering the federal payment to families increased $4.2 billion between the 2022-23 and 2024-25 benefit years.

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That 16 per cent increase brought the total cost up to $29.2 billion in 2024-25.

The budget office says the increase over those two years outpaced the higher costs during the COVID-19 pandemic, when the benefit was given temporary boosts to help families cope with economic uncertainty.

The Canada Child Benefit is indexed annually to inflation, which hit 8.1 per cent in 2022 and accounted for the bulk of the cost increase over the ensuing years.

The report says the rapid pace of immigration also increased the cost of the program because there were more families eligible for the support.

This report by The Canadian Press was first published Sept. 17, 2026.

Craig Lord, The Canadian Press