Research summary: Canada Child Benefit for single mothers living in low income

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Why this study

As part of the Poverty Reduction Strategy, the federal 2016 Budget introduced the Canada Child Benefit (CCB). The CCB replaced three previous child benefits. This new benefit is targeted, based on income, and tax-free. At introduction, about 65% of families receiving the largest CCB amount were single parent families. Of these, 90% were single-mother families.

The goal of this study was to understand how the CCB supports low-income, lone women-led families. Specifically, the study focused on:

• understanding how much the CCB has helped low-income families led by single women
• understanding whether the benefit improved labour market participation and standards of living, and
• understanding how the CCB is being used by these families

What we did

We used a qualitative research methodology to assess the socio-economic impacts of the CCB. We used a combination of methods including:

• semi-structured interviews
• financial diaries, and
• PhotoVoice, a participatory research method used to illustrate and express a topic of concern through imagery

Data collection took place between January 2020 and December 2020^{Footnote 1}. We talked to 146 participants as part of the study. All lived in one of the three major metropolitan areas in Canada:

• Montreal
• Toronto, or
• Vancouver

The study group was selected according to socio-demographic characteristics including:

• having at least one child under the age of 6, and
• having a low income

What we found

Participants in this study reported that the CCB was making a significant and positive difference in their personal and economic well-being. They depended on the benefit as a reliable source of income for basic expenses such as rent and groceries.

Participants also noted that if they received a higher CCB amount, the extra money would primarily be spent on groceries. This finding suggests that food spending for these low-income families could increase with any rise in the CCB.

Despite the Benefit, single mothers lived in low-income situations without some of their basic needs. Some mothers reported not being able to afford things such as:

• enough or high-quality food
• adequate housing
• full health care
• weather-appropriate clothing
• extracurricular activities for themselves or their children, and
• unexpected expenses

Further, some single mothers from this study reported using credit cards, other loans, and not paying bills on time to make ends meet. In the long run, these actions could prolong their situation of poverty.

What it means

The study shows that the CCB plays an important role in the household finances of low-income single mothers. Low-income single mothers and their children were better off than they would have been under the previous child benefit system. However, for participants, the benefit alone was not enough to lift them out of poverty.

Other factors contribute to the fact that single mothers have low incomes. These include:

• the absence of other reliable sources of income, including:
  • parental child support, and
  • employment
• barriers to employment and income variation due to childcare responsibilities
• the widespread presence of non-standard and insecure jobs
• out-of-pocket medical expenditures
• the high cost of suitable good quality housing, and
• childcare options that did not meet their needs in terms of:
  • hours
  • location, and
  • cost

Even with the CCB, most participants remained in poverty. Many relied on social assistance and amounts were generally too low to account for the high cost of living. Study participants suggested eliminating the CCB reduction at age 6 and continuing the CCB past the age of 18 years. This change would especially help support children during post-secondary studies and in the transition to adulthood.

Contact us

Strategic and Service Policy Branch, Social Policy Directorate, Social Research Division

Email: esdc.nc.sspb.research-recherche.dgpss.cn.edsc@hrsdc-rhdcc.gc.ca