By PAN Contributor Cody Wolfe
The Canada Child Benefit, introduced a year after the Liberals took power in 2015, has helped nine out of ten families with children under 18 receive more benefits than they did under the previous system, the Universal Canada Child Benefit. After the inception of this program, the percentage of children in poverty decreased substantially over the following five years, from 20.9% in 2015 to 13.5% in 2020. However, in 2021, researchers saw a sudden upward trend in the percentages, and by 2022 the percentage had risen back up to 18.1%. This is attributable to the consequences of the pandemic and the rising cost of living.
18.1% translates to about 1,300,000 people under the age of 18 living in poverty.
Conditions experienced during childhood—such as inadequate access to education, food insecurity, parental financial stress, and lower standard of living—significantly shape an individual’s development and future opportunities. This fact has ramifications not just for those individuals affected but for society as a whole. Children who grow up in poverty are more likely to experience poorer health, lower academic achievement, and reduced employment opportunities later in life. The economic burden of poverty strains public resources, as it increases reliance on social assistance programs funded by taxpayers.
Poverty is cyclical by nature. Without intervention, it often persists across generations.
In 2021, researchers from Statistics Canada analyzed trends in intergenerational income mobility and income inequality by measuring how much children’s income depends on their parent’s income for different generations of Canadians in a study involving five cohorts born in groups between 1963 and 1982. They then compared these findings to the level of income inequality among parents. By plotting these factors on a chart, they demonstrated where Canada fell on something called “the Great Gatsby Curve,” so named because of the classic novel by F. Scott Fitzgerald in which themes of the disparity between poverty and wealth are explored. Over time, Canada has been “moving up” the Great Gatsby Curve, which means that kids’ future financial success is more tied to their parents’ income now than it was before.
This highlights the importance of the CCB, as it serves as a valuable tool in breaking the cycle of poverty by providing direct, tax-free financial assistance to families in need. By reducing financial strain, the CCB helps parents afford essential expenses such as nutritious food, quality childcare, and educational resources.
To increase its impact, policymakers should consider expanding the CCB and investing in complementary social programs such as universal childcare, because addressing childhood poverty is not only a moral obligation but an investment in the future of Canada. Without intervention, the cycle of childhood poverty will continue, and a gradually increasing portion of each passing generation will continue being crippled by their circumstances. Ensuring all children are cared for and receiving their basic necessities and opportunities will lead to a more prosperous society for all Canadians.
More info here:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/canada-child-benefit-overview.html
Sources:
https://en.m.wikipedia.org/wiki/Great_Gatsby_Curve
https://www150.statcan.gc.ca/n1/en/pub/11f0019m/11f0019m2021001-eng.pdf?st=Gimxrd1p
https://campaign2000.ca/wp-content/uploads/2024/11/Ending-Child-Poverty-The-Time-is-Now-2023-Report-Card-on-Child-and-Family-Poverty-in-Canada-Nov-18-2024.pdf
https://www150.statcan.gc.ca/n1/pub/75f0002m/75f0002m2025001-eng.htm
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110001801&pickMembers%5B0%5D=1.1&pickMembers%5B1%5D=3.1&pickMembers%5B2%5D=4.2&cubeTimeFrame.startYear=2000&cubeTimeFrame.endYear=2022&referencePeriods=20000101%2C20220101
https://en.wikipedia.org/wiki/Canada_Child_Benefit
https://www.cbc.ca/news/politics/campaign-2000-national-report-card-child-poverty-1.7387176
https://web.archive.org/web/20180514212214/https://www.fin.gc.ca/n18/data/18-008_4-eng.asp
https://rosentaxlaw.com/the-impact-of-the-canada-child-benefit-ccb-on-family-taxes/
Poverty Advocacy Nanaimo 