Universal child care benefit is taxable but Poilievre says families won’t receive less

FREDERICTON – The Federal Employment and Social Development minister says every family receiving the Universal Child Care Benefit will get more money than they did before changes came into effect in January.

Pierre Poilievre is responding to comments and online posts from analysts in recent days who say the elimination of the Child Tax Credit announced last October and the fact the UCCB is taxable will leave very little extra money in the hands of families.

READ MORE: Who benefits from Canada’s Universal Child Care benefit?

Speaking in Fredericton, Poilievre says the increase in the benefit is so large that it compensates for the other changes.

For each child under the age of six, parents are getting an extra $60 per month, and they’ll now get $60 per month for children between six and 17 years old.

READ MORE: How lack of affordable, accessible child care hurts the economy

Fred O’Riordan, a tax expert with Ernst and Young LLP says after taxes and the elimination of the tax credit, parents in the middle to high tax brackets will be able to keep about $15 of that increase per month.

He says people should be prepared to have to pay the taxes on the UCCB come tax time in April.