Article Summary
More Than a Name Change: The Universal Child Care Benefit
Public Policy Paper by Ken Battle, Sherri Torjman and Michael MendelsonThe Universal Child Care Benefit (UCCB) is the Harper government’s first major social policy initiative since taking office. As the authors point out, UCCB has improved since its was first proposed as the Choice in Child Care Allowance. In their view, however, two serious flaws remain.
According to Ken Battle, Sherri Torjman and Michael Mendelson, one flaw is that the UCCB will be taxable for the lower-earner parent in a couple and the lone parent in single-parent families. As a result, families with the same income but of a different type will receive different after-tax benefits. In the new program, single-parent families will end up with the smallest after-tax benefits.
The other problem with the UCCB, the authors posit, is the abolishment of the $249 annual young child-care supplement that was part of the Canada Child Tax Benefit. Mainly low- and modest-income families used this supplement; in the authors view, its loss, along with the increase in taxable income, will make the distribution of net benefits unfair.
Despite the federal government’s claim that the Child Care Allowance will give each family $1,200 per child under six, Battle, Torjman and Mendelson point out that no family will end up with that amount. According to their calculations, the largest net benefit, $971, will go to upper-income one-earner couples. Working poor families will get less than those on welfare. The authors conclude that the Universal Child Care Benefit should be delivered through the Canada Child Tax Benefit.
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Policy Publication Details
| Author(s): | Ken Battle; Sherri Torjman and Michael Mendelson; | ||
| Publisher: | Caledon Institute of Social Policy [ Visit Website ] | ||
| Year Published: | 2006; | Publisher Type: | Research Institute |
| Publicly Available: | Yes | Research Focus: | Municipal; |
| Registration Required: | No | Language: | English |
| Payment Required: | No | Publication Format: | Adobe PDF |
Subjects / Categories:
Policy Articles / Children & Family / Daycare & Childcare
Policy Articles / Fiscal & Budgetary / Tax Policy
Policy Articles / Children & Family
Policy Articles / Fiscal & Budgetary
Policy Articles / Children & Family / Daycare & Childcare / 2006
Policy Articles / Fiscal & Budgetary / Tax Policy / 2006
Keywords / Tags:
one-earner couple; Stephen Harper; federal government; Conservative government; social policy initiative; low-earner parent; single-parent families; after-tax benefits; young child-care supplement; Canada Child Tax Benefit; taxable income;