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

GNWT says another school shows elevated lead in some water fixtures

A school in Behchokǫ̀ is the latest to receive test results showing elevated levels of lead in some water fixtures. So far, 28 tested school results have been announced to date, 23 have tested positive for elevated levels of lead in some of their drinking water fixtures. Robin Ferguson, Acting Assistant Deputy Minister at the Department of Infrastructure has said the GNWT plans to test more public buildings once school testing is completed.

Climate plan draws from NWT Traditional Knowledge and meteorological data

Hay River, the Hay River Metis Nation, Kátł'odeeche and West Point First Nation are working on a climate action plan that combines local and Traditional knowledge and statistical data alongside meteorological records and forecasts.

Yellowknife airport could be moving to a new location

At a public briefing today in Yellowknife, Assistant Deputy Infrastructure Minister Sam Shannon said YZF may be moving to a new location soon.

Behchokǫ̀ residents asked to conserve water

The Tłı̨chǫ government is asking Behchokǫ̀ residents to conserve water due to low water levels in the region, effective immediately.

Minister Caroline Wawzonek speaks about Northern infrastructure investments

Caroline Wawzonek, Minister of Finance and Minister of Strategic Infrastructure, Energy and Supply Chains, has released a statement on the infrastructure investments in the North announced earlier this month.