Universal Child Care Program

Devolin Column (June 29)

Starting July 1st the Universal Child Care Benefit of $100 a month will be paid to parents for each child they have under the age of six. This benefit is a new form of direct financial assistance to support the child care choices that families make to balance their work and family.

As the father of two children under the age of four, I know first-hand the challenges facing parents today regarding child care and early education.

As your Member of Parliament, I believe that every family deserves a full range of child care options, and needs help to afford whatever child care option they choose.

Many parents have asked me whether they need to sign up for this new program. The answer is quite straightforward – if you are currently receiving the Canada Child Tax Benefit, you do not need to apply for the Universal Child Care Benefit. 

However, if you are not receiving the Canada Child Tax Benefit, you must apply for this program by completed the Canada Child Tax Benefit application.

Application forms are available on the Canada Revenue Agency website at www.cra-arc.gc.ca, by calling 1 800 959-2221, or from any Canada Revenue Agency office or Service Canada Centre.

Every Canadian family with children under six will benefit, regardless of income or the type of child care they choose. This benefit is taxable in the hands of the lower-income parent. Once the system is operating, this $100 benefit will be sent out on the 20th day of each month, either by cheque or as a direct deposit into a bank account.

Please note that the Universal Child Care Benefit is in addition to existing federal programs, such as the Canada Child Tax Benefit, the National Child Benefit Supplement and the Child Care Expense Deduction. It does not affect the benefits families receive under these programs. The only exception is that the Canada Child Tax Benefit supplement, a small monthly amount previously received by some families, has been rolled into the new Universal Child Care Benefit.

Parents have also asked me whether there are any restrictions on the use of this money. The answer is no. Families can use the money for child care fees. They can use the money to pay for casual child care with a friend or relative. Or they can use it to offset a portion of lost income if one parent stays home with young children. I’ve even heard parents say that they will put the money into a Registered Education Savings Plan.

I know that some parents want full-time child care in a professionally operated facility; others want informal care with a relative or friend; while others choose to stay at home with their own young children. That’s why I support our plan to help parents with the cost of childcare.