If CCB was so successful and child poverty is supposedly down, why is Food Bank usage skyrocketing and why do we need a school lunch program?
They should get rid of CCB and simply make a fully universal school lunch program, universal daycare and universal before and after school care. Even with co-pays, that would be better than CCB.
CCB did show a material difference immediately after its introduction.
However, the cost of living for low-income earners (particularly housing + food) has risen much faster than CCB benefits.
When introduced, the maximum CCB was $6,400 per year, per child for children 5 and under, and $5,400 for children 6-17 years of age.
The current maximum is $7,437 per child under 6. or an increase of ~$1,000 over 7 years.
Straight-line CPI would have the number at $7,800 per year (Bank of Canada Inflation Calculator); but we all know CPI underweights housing significantly. (its weighted at 28% of CPI)
Housing inflation in Canada in the same period exceeded 60% (vs CPI at 22%); its difficult to extrapolate what 'real' inflation to the average person is like, but for Toronto, we know many low income earners spend 45% or more of their income on housing.
Using that weight, and adding the difference in housing inflation (or 38 extra basis points) and adding that back to CCB (very crude, I admit) would give you a CCB rate of
$8,894 maximum payment.
I think that's not a 1/2 bad explanation for the rise in child poverty.
We've also had minimum wages and social assistance fall further behind as well.
And market income growth.
Minimum wage under the Ford gov't in Ontario has risen in line with CPI, not actual cost-of-living growth.
If we did the latter, using my math, we add an extra 17% to the current number which would boost it to $19.36 per hour from $16.55
Ontario Works (welfare) rates were frozen last year by Ford (no inflationary increase at all) and none has been announced for this year either.