Article Summary
The Choice in Child Care Allowance: What You See Is Not What You Get
Community Story by Ken BattleIn this short paper, Ken Battle analyzes the Conservative Party’s plan for a Choice in Child Care Allowance. Despite its importance to Canadian working families, the author contends child care is one of the most underdeveloped aspects of Canadian social and economic policy. He argues there are deficiencies with regard to supply, affordability and quality, as well as noticeable disparities between the provinces and territories. He points out that no national system exists; parents rely largely on unregulated child-care providers and relatives.
A prescription for Canada’s child-care dilemma is controversial, the author contends. The Liberal and NDP parties favour a “supply-side” approach to creating affordable spaces funded by taxpayers and spaces created through bilateral agreements. In contrast, the Conservatives’ Choice in Child Care Allowance espouses a “demand-side” model, which distributes money to parents to spend as they choose. While the allocation is $1,200 per child under age six, in reality, the author points out, the value is less because it increases the taxable income of families, thereby giving them much less. Battle says the biggest losers would be modest-income families earning between $30,000 and -$40,000 annually, while middle- and upper-income families benefit.
Battle further suggests that the Choice in Child Care Allowance would not distribute benefits according to need as determined by income level. According to the author, this proposal would do little to ease the burden of child-care costs for low- and middle-income families who are not subsidized and have problems finding quality child care services. Battle advocates boosting the existing Child Tax Benefit because, in his view, it avoids the pitfalls of the Conservative Party’s proposal and offers a superior way to help families pay the costs of raising Canada’s children.
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Policy Publication Details
| Author(s): | Ken Battle; | ||
| Publisher: | Caledon Institute of Social Policy [ Visit Website ] | ||
| Year Published: | 2006; | Publisher Type: | Research Institute |
| Publicly Available: | Yes | Research Focus: | National; |
| 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:
Conservative Party; Choice in Child Care Allowance; working families; economic policy; social policy; unregulated child care; supply-side approach; demand-side approach; modest-income families; upper-income families; child-care costs; Child Tax Benefits;