Fewer children are living in poverty, says National Child Benefit Progress Report: 2000

OTTAWA, ONTARIO, April 23, 2001 - Fewer children are living in poverty and more low-income families are earning money from employment and leaving welfare, according to The National Child Benefit Progress Report: 2000 released today by federal/provincial/territorial Ministers responsible for Social Services.

The percentage of families with children living in low income dropped from 20.5 per cent in 1996 to 18 per cent in 1998. This decline was particularly significant with 180,000 children in families leaving low-income situations. While Canada’s strong economic performance has been a key factor in this decline, the National Child Benefit (NCB) has also supported this positive trend by increasing child benefits and services for low-income families and improving work incentives.

The National Child Benefit, which includes a First Nations component, was launched jointly by federal/provincial/territorial governments. It was created to help prevent and reduce child poverty and to support low-income families who choose to enter and stay in the labour force.

“We believe the National Child Benefit is making a positive difference and is contributing to the overall improved situation for low-income working families,” says Jane Stewart, Minister of Human Resources Development Canada and federal co-chair of Social Services Ministers.

“As part of our commitment to the National Child Benefit, we will continue to enhance our investments in Canadian families and children,” says Harry Van Mulligen, Saskatchewan Minister of Social Services and provincial co-chair of Social Services Ministers.

Through the NCB, the Government of Canada is providing income support directly to low-income families. At the same time, provinces, territories and First Nations communities are building on the programs, services and supports that they provide to these families.

In 1999-2000, the year covered by this Progress Report, the Government of Canada invested $1.5 billion as its contribution to the NCB, as part of a total investment of $6 billion in the Canada Child Tax Benefit for families with children. In the same year, provincial and territorial governments as well as First Nations invested and reinvested a total of $484 million in child/day care, early childhood services, children-at-risk services, employment income supplements and supplementary health benefits. NCB initiatives will be enhanced and expanded in 2000-2001, and are expected to reach over $600 million.

The NCB is also helping First Nations communities across the country to improve the services and supports for their children. The First Nations National Child Benefit Progress Report 2000, released today by Indian and Northern Affairs Canada, provides information on the First Nations component of the NCB. To date, approximately 600 First Nations across Canada are participating in the First Nations reinvestment component of the NCB. First Nations NCB initiatives, estimated at over $51 million in 1999-2000, focus on child/day care, child nutrition, early childhood development, employment and training opportunities and other areas such as cultural/traditional teachings, recreation and youth development.

Federal, provincial, territorial governments and First Nations will continue to report on NCB initiatives annually. Future evaluation will assess federal child benefits as well as provincial and territorial NCB investments and reinvestments.

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For more information, please refer to the attached backgrounder or contact:

Shannon Thrussell
Press Secretary
Minister Stewart’s Office
(819) 953-2353

Bill Carney
Communications Officer
Saskatchewan Ministry of Social Services
(306) 787-0916