April 6, 2005
FOR IMMEDIATE RELEASE

Report finds government supports increasing for low income families

OTTAWA—The National Child Benefit (NCB) Progress Report: 2003 released today by Federal/Provincial/Territorial Ministers Responsible for Social Services¹ confirms that government investments for low-income families with children continue to increase. Federal support to low-income families in 2002-2003 had risen from $5.6 billion in 2001-2002 to $5.7 billion in 2002-2003. It is projected to reach $6.4 billion in 2004-2005.

The report further shows that provincial and territorial governments and First Nations have increased their expenditures for low-income children and families through the National Child Benefit initiative to $764.2 million in 2002-2003. This funding supports programs and services, including child benefits and earned income supplements, child/day care initiatives, early childhood services and children-at-risk services, youth initiatives, and supplementary health benefits.

"The National Child Benefit is an important tool in our fight against child poverty," said Ken Dryden, Minister of Social Development and federal co-chair of Federal/Provincial/Territorial Ministers Responsible for Social Services. "This report demonstrates the increase of our long-term investments in helping low-income families. These figures should continue to rise this year and next."

"The National Child Benefit is a great example of the progress that can be made when we work in partnership, in this case, to improve the lives of low-income families," said Chester Gillan, Minister of Health and Social Services for Prince Edward Island and provincial co-chair of Canada's Social Services Ministers.

The National Child Benefit (NCB) Progress Report: 2003 is the fifth in a series of progress reports published since the National Child Benefit was launched in 1998. The report offers updated information on the activities of Canada's federal, provincial, and territorial governments and First Nations to improve the well-being of children in low-income families through the NCB initiative. This year's report also highlights for the first time provincial and territorial NCB investments in initiatives for youth, especially youth at risk.

The Government of Canada contributes to the National Child Benefit initiative through a supplement to its Canada Child Tax Benefit (CCTB) system. This additional payment is called the NCB Supplement. It provides extra support to low-income families with children by topping up the monthly payments they receive under the CCTB system.

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.

The National Child Benefit Progress Report: 2003 and accompanying information are available at www.nationalchildbenefit.ca .

¹ 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.

- 30 -

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