The Universal Child Care Plan provides support…

Universal Child Care Benefit

Part of Canada's Universal Child Care Plan, the Universal Child Care Benefit helps Canadians balance work and family by supporting their child care choices through financial assistance. This benefit of $100 a month — up to $1,200 a year per child — is paid to parents for all children under six years of age.

The Universal Child Care Benefit came into effect in July 2006. Payments are made directly to parents so that they can choose the child care that is best for their children and their family's needs.

For some parents, this might mean using the benefit to pay for some of their child care fees. A parent who stays at home may want to use it on a preschool program or for occasional care by a friend or neighbour. The benefit may also be used to purchase learning materials that parents might not be able to buy for their children otherwise. Parents may even wish to deposit all or part of the benefit in a Registered Education Savings Plan.

The Universal Child Care Benefit is in addition to existing federal programs to support families with children, such as the Canada Child Tax Benefit, the National Child Benefit Supplement and the Child Care Expense Deduction. It is also in addition to the new Child Tax Credit announced in Budget 2007, that provides families with maximum tax savings of over $300 per year, for each child under the age of 18. The Universal Child Care Benefit does not affect the benefits families receive under these programs. The only exception is that the Canada Child Tax Benefit supplement, a small monthly amount previously received by some families, has been rolled into the new Universal Child Care Benefit.

All Canadian families with children under six benefit, regardless of income or the type of child care they choose. This benefit is taxable in the hands of the lower-income spouse.