Description of Reinvestments

Provincial, Territorial and First Nations Reinvestments and Investments

Increases in the federal NCB contribution have allowed provinces and territories to reduce the direct cost of social assistance payments to families with children. These provincial and territorial “savings” can be re-directed to programs and services that benefit low-income families with children in their jurisdictions. This means benefits to social assistance families can be maintained at the same level as before and provincial and territorial funds can be invested instead in “NCB reinvestments” to improve the lives of children.

Provinces, territories and First Nations reinvested and invested a total of $692.4 million in 2001-2002 (estimated to increase to $777.0 million for 2002-2003) in programs and services in five main areas:

Child benefits and earned income supplements – to provide low-income families with more money so parents can stay in jobs working toward higher wages.

Child/day care initiatives – to help low-income families cover extra child care costs incurred when working.

Early childhood services and children-at-risk services – to help children get a healthy start in life by providing support to low-income families when their children are very young.

Supplementary health benefits – so that families can keep important health benefits when they move from welfare to work.

Other NCB initiatives – other programs and services as determined by individual provinces and territories.