Budget office predicts slide in child benefits


OTTAWA – Parliament’s budget watchdog says families will see their benefits erode over time under the Liberals’ new child benefit program.

The parliamentary budget officer also says fewer families will receive benefits in the long run because the new system is income-tested, but the income thresholds are not indexed to inflation.

The PBO forecasts that by 2025, the Liberals’ new Canada Child Benefit will cost less than the three benefits it replaced, including the universal child care benefit.

The PBO makes the forecasts in a report today on the fiscal impacts of the new Canada Child Benefit that kicked in on July 1 and was a key Liberal election promise.

The government says the new benefit provides the average family with $2,300 a year, with a maximum of $6,400 per child under six going to families with net incomes of less than $30,000.