Canada child benefit seen as fighting poverty as long as provinces co-operate

Next week's rollout of the Canada child benefit has been billed as asignificant move to fight child poverty.

But that move only succeeds if governments don't give with one hand and take with the other.

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That's why anti-child poverty activists at Campaign 2000 weretracking confirmation from all provincesand territories that the payments low-income families receiveunder the new federal program will not be clawed back from existingsocial assistance programs.

"We know from international research that child benefits are absolutely an essential element in a child poverty reduction strategy," said Sid Frankel, a member of the group'snational steering committee and an associate professor in the University of Manitoba's faculty of social work.

"It would be hard for the federal government to meet its poverty reduction commitment if the provinces did clawback, because they would be neutralizing at least part of the effect of the benefit."

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The size of the child benefit for families with less than $30,000 in net annual household income is significant $6,400 for eachchild under six and $5,400 for children aged six through 17. Families with disabled children get even more.

The 2016 federal budget estimated that about 300,000 fewer children would live in poverty in 2016-17 compared with 2014-15, as a result of the increased benefit.

The new money replaces several programs, includingthe federal-provincial national child benefit, which was also income-tested andtargeted atlow-income kids, but not as substantial asthe new program.

AfterCBC News madeinquiries about potential clawbacks, the final few provinces confirmed they won't take away provincial benefits as a result of the new federal money.

'Progressive when they want to be'

Activists were worried about Manitoba and Saskatchewan, in particular, where child poverty among First Nations populations is a growing concern.

"Manitobafamilies receiving employment income assistance (EIA) are able to keep their [Canada]child benefit," a spokeswoman told CBC News Tuesday.

A spokesperson for Saskatchewansaid her province also would have nocorresponding clawback ofsocial assistance.

"[Conservatives]can be progressive when they want to be," said Damon Johnston from the Aboriginal Council of Winnipeg, who was among thoselobbyingManitoba's minister.

The business community supports these kinds of programs, hesaid. "The evidence is there that lower-income families spend money on things they need."

"A very high percentage of mothers, when they get extra money of any kind, it will generally go to their kids," Johnstonsaid."We also know that welfare support to families is not a living support, particularly in today's economic situation."

"Children who grow up in impoverished environments are more likely to do things that [cause them to] end up in jail, or that society doesn't want," he said.

Administration can be a challenge, however, when it comes to providing benefits for First Nations kids.

Documents obtained by CBC News about the former universal child care benefit identified the need to reach out to aboriginal organizations to encourage more families to sign up with the Canada Revenue Agency.

The net income fromfederal tax returnsis used to calculate the benefit. If low-income householdsdon't file tax returnsand register, they won't receive the help.

Indigenous or not, families with complexcustody arrangements also present challenges in targetingthe benefit in the right place.

'Moral suasion' at work

Additional federal benefits may also easethe strain on other social services.

For example, Jane Roy, the co-director of the food bank in London, Ont., told the London Free Pressthat demand at her agency dropped last summer after thelarger, retroactive lump sum universal child benefitpaymentsarrived inJuly. But the needwascreeping back up again a few months later.

Prior to the Canada child benefit,Quebec'ssupplementforlow-income families was based ondifferent child agesand paid differentamountsfrom the national child benefit in other provinces.

Simon Laboissonnire, the press secretary for Quebec Employment and Social Solidarity MinisterFranoisBlais,told CBC News that Quebec won'tclaw back social assistance.

But some thinkQuebec mightroll the CCBinto a basic minimum income scheme. Laboissonnire said it was too early to say what the province might do.

The federal government could have made clawbacks impossible by adding a condition to the Canada social transfer, the money the federal government transfers to provinces to support education and social assistance programs.

It chose not to.

The budget implementation act left a loophole, similar to one in place withthe former Canada child tax benefit, that gaveprovinces leeway.

A spokeswoman forEmployment and Social DevelopmentCanada wrote CBC Newsto say federal and provincial governments were collaborating to avoid any "negative interactions."

"The government wants to ensure that the full amount of the increase inchildbenefits, with the introduction of the CCB, will be passed along to families," she wrote. "No province or territory has indicated that they are planning to deduct the CCB from social assistance."

"They're using a kind of moral suasion here," Campaign 2000'sFrankel said.

"We have a federal government that has been clear to provinces about what it wants to happen, but also has been quite clear that the provinces will make the decision and it will not use the power it has."