July 20, 2001

The latest increase in the Canada Child Tax Benefit (CCTB) came into effect today. This means that the maximum benefit paid to low-income families will now reach $2,372 per year for the first child, $2,172 per year for the second child and $2,175 per year for each additional child.

More than 80% of Canadian families, representing 5.9 million children, will receive the CCTB in 2001-2002.

This latest increase is another step towards fulfilling our government’s commitment to enrich the CCTB so that maximum benefits will reach more than $2,500 for a family’s first child by 2004.

The CCTB is part of our government’s strategy to improve the quality of life of Canadians and to give every child the good start they need in life so that they are ready to learn when they begin school, and to grow into healthy, productive adults.

This strategy includes:

• Maintaining a strong and dynamic economy so that Canadians can find and keep a good job with a good salary.
• An investment of $ 2.2 billion over the next five years in the Early Childhood Development Agreement with the provinces.
• Doubling to one full year, as of January 1^st this year, the length of maternity and parental benefits under Employment Insurance.
• The Canada Prenatal Nutrition Program to assist at-risk pregnant women. There are 277 projects in more than 680 urban and rural communities across Canada, with one-quarter of participants being Aboriginal.
• The Aboriginal Head Start program -- an investment of close to $50 million per year -- which benefits thousands of First Nations, Inuit and Metis pre-school children and their families.
• New child support laws, which include guidelines for determining child support amounts and changes in the tax treatment of child support.

The 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.

We will make special efforts to provide young Aboriginal Canadians with the basic tools they need to take greater advantage of the opportunities Canada has to offer.