Archived – The National Child Benefit Progress Report 2007

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Appendix 1

Canada Child Tax Benefit (CCTB): A federal income support program for Canadian families with children that is delivered through the income tax system. The CCTB includes two components: a base benefit for low- and middle-income families with children, and the National Child Benefit (NCB) Supplement, which provides additional support to low-income families with children.

Depth of Low Income: The additional amount of income a low-income family would need to reach a pre-determined line, such as Statistics Canada’s Low-Income Cut-Offs (LICOs), the Low-Income Measure (LIM),or the Market Basket Measure (MBM).

Disposable Income: The income that a family has left after paying personal income taxes and other payroll deductions, such as Canada Pension Plan contributions and Employment Insurance premiums.

Earnings Supplements: Payments by governments to families that top up work-related earnings. Earnings supplement programs are often targeted to low-income working families, and they provide benefits based on the number of children in a family.

Incidence of Low Income: The proportion of families with children with annual income falling below a pre-determined line, such as Statistics Canada’s LICOs, the LIM, or the Market Basket Measure (MBM).

Indicators: In the context of this report, indicators are statistics that assess how well Canadian families are faring.

Societal Level Indicators measure areas such as low income and labour force attachment and do not assume that any changes are necessarily caused by the NCB.

Direct Outcome Indicators, on the other hand, measure only those changes that are directly caused by the NCB.

Market Basket Measure (MBM): An additional research tool for governments and other interested Canadians to use in analyzing low income. The MBM provides a new perspective on low income, as it is based on a specific transparent basket of goods and services. The MBM identifies disposable income levels that are required to purchase this basket of goods and services in various communities across Canada. Compared with Statistics Canada’s Low-Income Cut-Offs (LICOs) and Low Income Measure (LIM), the MBM is a more precise reflection of differing living costs by geographic location.

National Child Benefit (NCB): A joint federal, provincial and territorial government initiative designed to support low-income families with children. It includes increased federal income support plus provincial, territorial and First Nations reinvestments and additional investments in programs and services. The NCB began in July 1998.

NCB Reinvestment Funds: Comprise social assistance/child benefit savings and, in some jurisdictions, Children’s Special Allowance (CSA) recoveries. Provinces and territories have the flexibility to adjust social assistance or child benefit payments by an amount equivalent to the NCB Supplement. These savings can then be reinvested to provide funding for new or enhanced programs, benefits and/or services to meet local needs and priorities (see Appendix 2 for further details).

NCB Investment Funds: Comprise additional funds that some jurisdictions devote to the NCB, over and above the reinvestment funds.

NCB Supplement: The federal contribution to the NCB Initiative—a monthly payment targeted to low-income families to help with the costs of raising children. It is a component of the CCTB.

SLID, or the Survey of Labour and Income Dynamics: A longitudinal labour market and income survey to study changes over time in Canadians’ labour force status and economic well-being.

Social Assistance (SA): A needs-tested, last-resort system of income support administered by provincial and territorial governments. It is commonly known as welfare.

The Welfare Wall: Describes an array of barriers that can make it less financially attractive for people to move from social assistance to the labour market due to the loss of income or services.

Working Income Supplement (WIS): A federal program that preceded the NCB. It provided income support to supplement the earnings of low-income working families with children. The WIS was replaced in July 1998 by the NCB Supplement. Some provinces and territories have reinvested NCB funds in their own versions of an earned income supplement.

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