The National Child Benefit, Child Poverty

1
The National Child Benefit, Child Poverty Food
Insecurity

• Presentation to Second National CDPAC Conference
• November 7, 2006

2
Outline

• Social Policy Context
• National Childrens Benefit - Genesis and
  Objectives
• The New Brunswick Decision
• Impacts of Decision

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Changes in NB Society
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The Success and The Challenge
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Addressing the Challenge

• In 1996, First Ministers signaled need for
  collective action on child poverty
• Recognized barriers to low income working
  families also needed to be addressed
• In 1998, the Canadian Child Tax Benefit (CCTB)
  replaced the Child Tax Benefit and the NCB
  Supplement replaced the Working Income Supplement

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NCB Objectives

• Help prevent and reduce depth of child poverty
• Promote attachment to labour market
• Reduce overlap and duplication in government
  programming

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Structure - CCTB
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Planned Implementation

• Monthly payments to low-income families
• Provinces to adjust social assistance or child
  benefits by an equivalent amount to the NCB
  supplement
• Claw-backed funds to be reinvested in programs
  that support labour market attachment, reduce
  child poverty and harmonization of benefits and
  services

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The New Brunswick Decision

• Pass-through the NCB Supplement
• Policy environment supported this decision
• Previously reformed social assistance
• Introduced Early Childhood Initiatives
• Introduced NB Child Tax Benefit and Working
  Income Supplement

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NB Caseload Overview
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Was it the Right Decision?- Measures of Success

• Social assistance case load reductions
• Child poverty rates
• Food insecurity

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Social Assistance Caseload
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SA Trends Recipients with Children

• Analysis of NCB eligible SA recipients from 1997
  to 2000, showed Alberta at 22 reduction,
  Saskatchewan 15 and Newfoundland 7
• The researcher concluded pass-through of a
  portion of the NCB supplement to SA recipients
  blunts the power of the adjustment to serve as a
  work incentive

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SA Trends NB Recipients with Children

• Over the same 1997 to 2000 period NB had a 23
  reduction in the number of NCB eligible social
  assistance recipients
• This is a strong performance on the chosen labour
  market attachment indicator

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Child Poverty Measuring Progress

• Percent of Children Living in Poverty

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Child Poverty Rates Since 1980
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Food Insecurity - Atlantic

• The risk of household food insecurity was
  one-third less in NB versus NS
• The risk of individual food insecurity was
  one-fifth less in NB versus NS
• The main policy difference was the pass-through
  of the NCB in NB

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Food Insecurity - National
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Conclusions

• On measures of SA case load reduction, child
  poverty and food insecurity New Brunswicks
  decision has not compromised objectives related
  to child poverty and labour market attachment
• The pass-through has produced positive outcomes
  for low-income New Brunswickers