The Government’s Efforts to Reduce Child Poverty

May 7, 2002

A generation ago, Canadians took up the challenge of eliminating poverty among seniors. Ensuring that no Canadian child suffers from the debilitating effects of poverty is a top priority of our government.

A strong economy, with good jobs that pay well for Canadians, is the best means to reduce poverty. This belief has been the bedrock of our government’s policy since 1993.

At the same time, our government’s Innovation and Skills Agenda will help us make sure that all Canadians have the cutting edge skills and learning they will need to prosper and realize their unique potential, and to brand Canada as one of the most innovative and inclusive nations in the world.

Our commitment is clear: to take the action necessary – in partnership with all levels of government, communities and the voluntary sector – so that every Canadian child can have the best possible start in life, and can be equipped with the capacities they need to be ready to learn when they begin school, and to grow into healthy, productive adults.

Our government understands that a good start is essential to a child’s well-being and success in life. And that the strength of our society will depend on the investments we make today, as a nation, in families and children.

A record of achievement

Overall, the Government of Canada provides over $11 billion per year in services and programs for Canadian children.

• We have committed $2.2 billion over five years to the Early Childhood Development Agreement with the provinces.
• We have doubled the length of maternity and parental benefits under Employment Insurance as of January 1st, 2001.
• We have continued to increase the Canada Child Tax Benefit, so that families will receive a maximum benefit of more than $2,500 for a first child by 2004. And we have lowered the income threshold so that middle-income families can now benefit.
• Under the five-year tax reduction plan laid out in Budget 2000, families with children will enjoy an average reduction in their net personal income tax of at least 21% annually by 2004.
• We have twice increased the limit on the child expense deduction – from $4,000 to $7,000 per year for each child under 7.
• We have created the Aboriginal Head Start program, which benefits thousands of First Nations, Inuit and Metis pre-school children and their families. And over the next two years, $100 million will be provided to enhance programs such as child care and head start.
• We are investing $25 million over two years – a tenfold increase – in support of our commitment to significantly reduce the number of Aboriginal newborns affected by Fetal Alcohol Syndrome.
• We are increasing by $60 million the funding in support of Aboriginal children living on reserve who have special needs at school because of either physical, emotional or developmental barriers to learning.

Future Action  

Our government will continue to take action to help disadvantaged families with children break the cycle of poverty and dependency, and to ensure that all families have access to the services and supports they need to care for their children.

Among other things, our government will:

• build on successful employment support pilot programs by working with the provinces and territories to develop new measures to help single parents overcome poverty and become more self-sufficient.
• work with the provinces to modernize the laws for child support, custody and access, to ensure that they work in the best interest of children in cases of family breakdown.