Canada Child Benefit increases once again to keep up with the cost of living

News release

More support for families with children

July 20, 2021              Kitchener, Ontario              Employment and Social Development Canada

Every child deserves the best possible start in life. That is why the Government of Canada introduced the Canada Child Benefit (CCB) five years ago to help give families a fair chance at success. Since then, each year the CCB has provided almost $25 billion in tax-free support to about 3.5 million families. This support has helped lift nearly 435,000 children out of poverty, grown the middle class, and put more money in the pockets of 9 out of 10 Canadian families compared to the previous suite of child benefits.

Today, the Honourable Ahmed Hussen, Minister of Families, Children and Social Development, announced that the maximum annual Canada Child Benefit will once again be increased to keep up with the rising cost of living. For the 2021–2022 benefit year, the maximum annual benefit will be $6,833 per child under age 6 and $5,765 per child aged 6 through 17. That’s over $350 more per child than when the CCB was first introduced.

Additionally, in 2021, in recognition that many families are struggling with a wide range of expenses during the COVID-19 pandemic, families entitled to the CCB are receiving additional temporary support of up to $1,200 for each child under the age of 6 through the CCB.

Minister Hussen also highlighted Budget 2021’s historic investment of up to $30 billion over five years and, combined with previous investments, $9.2 billion per year of ongoing funding to build a high-quality, affordable, flexible and inclusive early learning and child care system across Canada – because parents should not have to choose between working and taking care of their children. This investment will allow for an average fee of $10 a day by 2025–2026 for all regulated child care spaces, starting with a 50% reduction in average fees for regulated early learning and child care spaces by the end of 2022. These investments will create new opportunities for Canadian families and will enable parents, particularly mothers, to access jobs.

One of the Government of Canada’s top priorities is supporting families and children as we weather the COVID‑19 pandemic and build back better.

Quotes

“Every child deserves the best possible start in life. Today, we celebrate five years of providing more support for parents through the Canada Child Benefit. I have heard from so many Canadian parents how much it means to be able to rely on extra help every month, especially in these challenging times. The Government of Canada will continue to take action through initiatives like the CCB that put families and children first.”
– Minister of Families, Children and Social Development, Ahmed Hussen

“I am happy to be able to celebrate the positive impact the Canada Child Benefit has had on Canadian families for the past five years! We know that our country’s efforts toward recovery are ongoing, but, with benefits like the CCB and the Young Child Supplement, additional relief is at hand for families with young children as they seek to balance work, child care and family responsibilities and to recover a new normal for themselves and their children.”
– Minister of National Revenue, Diane Lebouthillier

Quick facts

  • Introduced in 2016, the CCB is a tax-free monthly payment based on income. It provides increased support for those who need it most, to help with the cost of raising children under 18. 

  • The CCB was indexed for the first time in July 2018 – two years ahead of schedule. This indexation means that the maximum benefit amounts and income thresholds at which benefits begin to be reduced are increased annually to keep pace with the rising cost of living, giving parents more support each month to help them provide for their children.

  • For the 2021–2022 benefit year that began in July 2021, the maximum annual benefit is $6,833 for each child under age 6 and $5,765 for each child aged 6 to 17. 

  • Examples of indexed payments for the 2021–2022 CCB benefit year:

    • A single mother with two children aged 3 and 5, whose net income in 2020 was $32,000, will receive the maximum CCB amount of $13,666 tax-free for the 2021–2022 CCB benefit year.
    • Two parents of a 5-year-old, whose family net income in 2020 was $105,000, will receive $3,078 tax-free for the 2021–2022 CCB benefit year.
    • Two parents with three children aged 2, 4 and 8, with a family net income in 2020 of $70,000, will receive $12,283 tax-free for the 2021–2022 CCB benefit year.
    • On top of their regular monthly CCB payments, families entitled to the CCB in January, April, July or October 2021 for a child under the age of 6 will also receive temporary support through the CCB Young Child Supplement (CCBYCS). Families with an income of less than $120,000 in 2019 and 2020 will receive up to $1,200 in tax-free payments for each eligible child. Families with an income of more than $120,000 in 2019 and 2020 will receive up to $600 in tax-free payments for each eligible child.
  • Families who have filed their 2019 and 2020 taxes and who already receive the CCB will not need to take any additional action to receive the 2021 CCBYCS.

  • Agencies that receive children’s special allowances (CSA) payments will also receive the CCBYCS equivalent payments of $300 for each child under the age of 6 for whom the CSA is paid. 

  • The Government of Canada has invested approximately $1.6 billion since 2017 to support the creation of more high-quality, affordable, flexible and inclusive child care spaces across the country.

  • Through previous investments in early learning and child care, over 40,000 more affordable child care spaces were created nationally before the COVID-19 pandemic.

Associated links

Contacts

For media enquiries, please contact:

Mikaela Harrison
Press Secretary
Office of the Minister of Families, Children and Social Development, Ahmed Hussen
mikaela.harrison@hrsdc-rhdcc.gc.ca

Media Relations Office
Employment and Social Development Canada
819-994-5559
media@hrsdc-rhdcc.gc.ca
Follow us on Twitter

Page details

Date modified: