NWT changes rules to make room for federal child care benefit

The Government of the Northwest Territories is changing its rules on income support to accommodate the improved federal Universal Child Care Benefit.

The new child care benefit would, under the NWT’s usual rules, have counted as unearned income. That would see many families eligible for income assistance hit the territory’s $1,200 annual cap on unearned income and, subsequently, lose some of their income assistance payments.

Retroactive payments of new and increased child care benefits are set to begin in the coming weeks. Families are eligible to receive a new $160 monthly payment for each child aged under six, and an improved $60 monthly benefit for each child aged six to 17 – backdated to January 2015.

While all families with eligible children receive the payments, they would trigger a drop in income support for some low-income NWT families.

“The increase to the Universal Child Care Benefit is welcome. However, there are implications for Northwest Territories residents currently on income assistance,” said Premier Bob McLeod in a territorial government statement on Friday.

“Without a change in approach, these retroactive payments would reduce the amount income assistance clients will receive from the Income Assistance program, as the child care benefit is considered income.”

The territorial government now says the federal government’s retroactive payment will be exempt from its unearned income policy.

“We must be prepared to be innovative and flexible with our programs and services,” added McLeod.

Federal employment minister Pierre Poilievre has termed the retroactive payment “Christmas in July” for Canadian families. The payments received in the coming weeks will total up to $520 for children aged under six, and up to $420 for every child six to 17.

But the benefit is taxable, so any family paying income tax will see some of it returned to the federal government in April.

Ollie Williams
Ollie Williams
Hello! I'm the one with the British accent. Thanks for supporting CJCD. To contact me, you can email me, find me on Twitter or call (867) 920-4663.

Continue Reading

You may also like



cjcd Now playing play

- Advertisement -

Related Articles

- Advertisement -

Latest News

Trump threatens new tariffs, attacks Carney and Ford as trade war escalates

U.S. President Donald Trump threatened Monday to impose 50-per-cent tariffs on Canadian vehicles and auto parts, then attacked Prime Minister Mark Carney and Ontario Premier Doug Ford as the Conservative opposition demanded details of failed trade negotiations.

Two charged in Fort Smith shooting, all three victims reported as stable

Two people have been charged in relation to the shooting incident which took place in Fort Smith on August 22.

Telecom outage planned for Sachs Harbour, Sambaa K’e, and Wekweètì

The Government of the Northwest Territories is alerting residents of Sachs Harbour, Sambaa K’e and Wekweètì of a planned telecommunications service disruption.

Premier RJ Simpson speaks on new tariffs from the United States

Northwest Territories Premier R.J. Simpson has issued a statement following the new tariffs imposed by the United States on approximately $28 billion in Canadian goods.

Two new fires located over the weekend

Two new fires have been spotted over the weekend, according to the latest report by NWT Fire.