A Conservative cabinet minister calls it Christmas in July, but opposition parties say cheques deposited and mailed to parents are a pre-election give-away — one that will have implications at tax time next year.
The federal government handed out almost $3 billion this week in the form of a new universal child-care benefit that pays parents of kids under six $160 a month and those ages seven to 17 $60 each month. It replaces the previous universal child-care payment of $100 a month for parents with children six or under.
The program started in January, but the Conservative government chose to hold back payments for six months and give them out in a lump sum.
“They save them up and roll them out a few months before election time,” said local Liberal candidate Steve Powrie.
While Powrie said parents will welcome the money, he said the government didn’t advertise the fact the payments are fully taxable as income and that another child credit has been eliminated.
The Canadian Press has calculated about $500 million of the $3 billion handout will be clawed back by Ottawa and the provinces.
“The way they’ve been rolled out is reflective of what’s wrong with government in the first place,” Powrie said.
Local Conservative MP Cathy McLeod, who will again represent the party in the Oct. 19 federal election, said the childcare benefit is part of the Conservative government’s pledge to families, one that should help stimulate the Canadian economy as it flirts with recession.
“I call it an important benefit for families with children,” McLeod said.
She said her office is getting calls from constituents wondering if they are signed up for the benefits.
Ottawa estimates about 200,000 eligible families have not registered.
New Democrat candidate Bill Sundhu said while the payments are supposed to assist with child care, they represent a fraction of the real cost and much of the money will go to families whose children are old enough to no longer need it.
“That [$160 a month] on average pays about three days’ worth of child care. Someone told me, ‘Wait a minute, that’s not even three days for me.’”
Each of the three major parties has its own plan to assist families. The NDP plans to bring in a $15 a day universal child-care program, available to parents at the same price regardless of income.
The Liberals plan to give families about $500 a month for each child, depending on age, and declining as annual income of parents increases from $30,000 up to $200,000.
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