Report confirms National Child Benefit having positive impact for low-income families

OTTAWA, June 6, 2005 — A report evaluating the first few years of the federal/provincial/territorial National Child Benefit (NCB) initiative confirms thatthe NCB is helping to reduce the depth and incidence of child poverty in Canada . The Evaluation of the National Child Benefit Initiative: Synthesis Report released today by Federal-Provincial-Territorial Ministers Responsible for Social Services* compiles evidence from a number of studies and shows overall that the NCB initiative has had a positive impact on low-income families with children.

"The National Child Benefit is one of Canada's main tools in our fight against child poverty," said Ken Dryden, Minister of Social Development and federal co-chair of Canada's Social Services Ministers. "While we know that we have more to do, the NCB initiative is taking us in the right direction." 

"This report confirms that we are making progress in achieving the goals of the National Child Benefit: to help prevent and reduce the depth of child poverty, to support parents as they move into the labour market by ensuring they are better off working, and to reduce overlap and duplication of government programs," said Chester Gillan, Minister of Health and Social Services for Prince Edward Island and provincial co-chair of Canada’s Social Services Ministers.

The Evaluation of the National Child Benefit Initiative: Synthesis Report shows that the NCB initiative has reduced the number of families living in low income, while also improving the financial situation for families living in low income ; that it has made work more financially attractive than social assistance for most families; and that it has enabled greater federal-provincial-territorial co-ordination and integration in the delivery of child benefits.

Introduced in 1998, the NCB initiative is a unique partnership among federal, provincial, and territorial governments with a First Nations component and provides income supports as well as benefits and services for low-income families. The aim of the NCB initiative is to reduce poverty among families with children, with a particular emphasis on providing incentives for low-income families to enter or remain in the workforce.

Since 1998, the Government of Canada has steadily increased its investment in children and their families through the Canada Child Tax Benefit (CCTB base benefit and NCB Supplement). In Budget 2003, the Government of Canada announced a long-term plan of further increases in the NCB Supplement. As a result, by the year 2007-2008, the annual federal investment to support Canadian families with children through the combined base benefit of the Canada Child Tax Benefit and the NCB Supplement is projected to reach $10 billion.

While progress has been made in reducing child poverty in recent years, governments recognize the need for ongoing efforts and continue to work together toward this end.

Governments are also committed to public reporting on the progress, efficiency, and effectiveness of the NCB initiative. This evaluation report is an important part of that accountability and transparency. The evaluation evidence was produced by both external consultants as well as internal work done by Social Development Canada (then Human Resources Development Canada).

The Evaluation of the National Child Benefit Initiative: Synthesis Report can be found at www.nationalchildbenefit.ca  and at www.sdc.gc.ca. Evaluation Technical Reports are available on request from Social Development Canada.

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For more information, please contact:

Media Relations
Social Development Canada
(613) 941-1110

Web site: www.sdc.gc.ca

Darlene Gillis
Communications Coordinator
PEI Department of Health & Social Services
tel: (902) 368-6172
fax: (902) 368-4969
email: ddgillis@gov.pe.ca

* While the Government of Quebec agrees with the basic principles of the National Child Benefit (NCB), it chose not to participate in this initiative because it wanted to assume control over income support for children in Quebec . However, Quebec residents benefit from the increased Canada Child Tax Benefit and from important investments made by the Government of Quebec towards family and childhood services as part of Quebec's Family Policy. In this document, references to joint federal/provincial/territorial positions do not include Quebec.