Canada Social Transfer

(see also Canada Health Transfer)

• The Canada Social Transfer (CST) is a federal block transfer to provinces and territories in support of post-secondary education, social assistance and social services, including early childhood development and early learning and childcare.

• The CST is made up of both a cash transfer and tax transfer component. CST cash and tax transfers will be $15.7 billion in 2006-07, of which $8.5 billion in cash and $7.2 billion in tax transfers.

• The CST is allocated on an equal per capita basis to ensure equal support to all Canadians regardless of their province or territory of residence.

• CST cash levels are currently set in legislation up to 2007-08.

• The CST supports the Government’s commitment to prohibit minimum residency requirements for social assistance.

Child Care Support

• Federal funding for early childhood development and early learning and childcare is provided to provinces and territories through the CST as of 2004-05 (and prior to that through the former Canada Health and Social Transfer).

• From 2001-02 to 2007-08, the Government of Canada has committed over $4.2 billion in support of young children. Funding initiatives include:

• $3.2 billion over 2001-02 to 2007-08 in support of early childhood development, including the on-going funding commitment of $500 million annually after 2005-06 as confirmed in Budget 2003.

• $1.05 billion over 2003-04 to 2007-08, in support of early learning and childcare, reflecting the Budget 2003 investment of $900 million and an additional $150 million in Budget 2004.

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