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

Three more N.W.T. schools show enhanced levels of lead in water

Three more schools show high levels of lead in drinking water, testing so far confirms that 35 of 45 schools sites in the N.W.T. have elevated levels of lead, about 78 per cent. Two more schools in the territory showed elevated levels of copper in drinking water.

Alison McCreesh’s “bite-sized” comic treasury celebrates long and sweet of “short years”

Alison McCreesh’s “bite-sized” comic treasury celebrates the long and sweet whirlwind, those “short years” of raising small children. The Yellowknife artist, cartoonist and illustrator says her new book about parenting three small children is about all the moments of humour and love as well as heartbreak over the years.

Tsiigehtchic and Arctic Red River / Mackenzie River Crossing close for season

The Northwest Territories department of Infrastructure has closed the Tsiigehtchic Main Ice Crossing and the Arctic Red River / Mackenzie River (Hwy 8) Crossing for the season.

Construction continues on Fort Simpson modular duplexes

Construction is underway on two new duplexes in Fort Simpson, an important milestone in the delivery of the territory’s modular housing project.

Ont. and Alta suspects facing drug trafficking charges in Inuvik

A 21-year-old from Ont. and a 24-year-old from Alta. are facing drug trafficking charges after police executed a search at an Inuvik apartment Tuesday.