News release

Integrated Child Benefit for Low-Income Nova Scotians

Community Services

COMMUNITY SERVICES--CXN--Integrated Child Benefit for Low-Income Nova Scotians


The provincial government today announced the first of several measures designed to help reduce child poverty in Nova Scotia. The province will introduce an Integrated Child Benefit for all children of low-income families effective August 2001. The Integrated Child Benefit will go to about 15,000 families on social assistance and 20,000 low-income working families, for almost 60,000 children.

This program removes children's personal allowances from the welfare system, eliminating future clawbacks to the National Child Benefit (NCB), a promise the government has made. The National Child Benefit is indexed, so increases will help families on social assistance to cope with rising costs.

Establishing a standardized children's allowance outside the social assistance system is one means of reducing barriers to employment and increasing self-sufficiency. Other key aspects of the new program will be announced in the days ahead.

"The introduction of the Integrated Child Benefit for all low-income families clearly demonstrates this government's commitment to breaking the cycle of poverty," said Community Services Minister Peter Christie. "Parents on assistance cannot risk taking an entry-level job, because their wages won't make up for the loss of their children's benefits. That's built up a wall between the welfare client and the workforce we even call it that the 'welfare wall.' By introducing the Integrated Child Benefit, we're lowering that wall. We're providing secure benefits for children whether their parents are on assistance or in the workforce. We're helping Nova Scotians move toward self-sufficiency we're investing in our people."

The allowance will be provided by increasing the Nova Scotia Child Benefit (NSCB) and combining it with the National Child Benefit. Under the Integrated Child Benefit, low-income families will be eligible to receive up to $1,600 each year for each child. This is the average amount of benefits currently provided to children through social assistance programs. In addition to the Integrated Child Benefit, families will continue to receive the base amount of the Canada Child Tax Benefit, of about $1,100 per year per child.

Currently, families on assistance receive personal allowances ranging from $1,300 a year to $2,000 for dependent children, based on age. Children currently receiving more than $1,600 will continue to receive the higher amount until they are no longer eligible.

The Integrated Child Benefit will be provided to all low-income families who meet eligibility criteria, regardless of whether the family receives money through the workforce or through assistance.

The Integrated Child Benefit will not be considered as income to parents receiving assistance. Families will receive the entire amount, without a reduction in their assistance such as now occurs through a clawback. Also, beginning in 2002, annual increases to the National Child Benefit will go directly to the families.

Mr. Christie said for families who rely on assistance, the Integrated Child Benefit will eliminate the clawback from all future increases to the NCB.

Eligibility is determined by family income. Families with incomes under $15,999 will receive the full benefit; families with incomes between $15,999 and $20,921 will receive partial benefits. Eligible families who currently receive less than $1600 for any of their dependent children under the National Child Benefit and Nova Scotia Child Benefit combined will have their current allowances increased to $1,600 per year.

In August 2001 the NSCB will increase from the current annual levels of $403, $319 and $286 to $423, $629 and $706 for the first, second and third child in each family. When combined with the NCB, the Integrated Child Benefit will be provided to every eligible child in Nova Scotia.

A low-income working family with two children currently receives a combined $2,470. That amount will increase by $730 to $3,200.

Families currently receiving social assistance benefits will continue to receive shelter allowances for dependent children. Only personal allowances for children will be removed from the system.

For further information on the Integrated Child Benefit, visit the Community Services website at www.gov.ns.ca/coms or by phone in the Halifax Metro area at 902-424-7227 and elsewhere in Nova Scotia at 1-866-795-3688.


kjd October 23, 2000