Tories to raise childcare benefits
Increased payments set to kick in three months before election
The federal government will introduce legislation Friday to increase the value of the monthly universal childcare benefit, with the first payments hitting bank accounts three months before Canadians are scheduled to go to the polls in a federal election.
The payments will be retroactive to Jan. 1, meaning families will see an average payment of about $ 500 on July 20, when the increased benefits kick in. Canadians are to go to the polls on Oct. 19.
Employment Minister Pierre Poilievre, the minister in charge of the file, said Wednesday the timing of the new payments was related to setting up federal systems to handle “the millions of families who weren’t eligible” for payments before the government decided to expand eligibility and the value of the payments.
Whether the money will actually be used solely for child care is questioned by critics.
But “parents can use it for whatever they want,” Poilievre said. “The whole policy is premised on the belief that parents will always do what’s best for their kids. It’s not the government’s job to go into people’s homes and tell them where to spend money.”
The cost of child care — and how to pay for it — is shaping up to be a key election issue with the Conservatives and NDP drawing clear policy lines. The Opposition is proposing a $ 5- billion universal childcare program.
The Liberals have voiced support for a national childcare program, but have yet to provide any specifics.
The NDP has said it also would keep the childcare benefit if elected, a move some think is meant to claw away at some of the Conservatives’ electoral support.
“You can only spend the same dollar once,” Poilievre said.
“The problem with the NDP, Liberal plan for government daycare is that if you have a stay- at- home parent, you get nothing. If you use a family member, you get nothing. If you use a neighbourhood private daycare, you get nothing. If your kids are too old for daycare, you get nothing.”
When the first increased pay- ment arrives, a number of families also will see the benefit clawed back by the federal taxman. The benefit is taxable in the hands of the lower- income earner in the home. In many cases, that happens to be mothers who stay home with children.
“It’s much like getting a raise at work. You got a raise at work of $ 2,000 a year, then obviously there are tax implications, but obviously, you’re better off,” Poilievre said.