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| Canada overhauls child benefits scheme | Canada overhauls child benefits scheme |
| (about 3 hours later) | |
| Canada has overhauled its child benefits system and significantly increased the amount of money the state will pay out to families. | Canada has overhauled its child benefits system and significantly increased the amount of money the state will pay out to families. |
| In a new scheme, launched on 20 July, nine out of ten families will see their benefits rise. | In a new scheme, launched on 20 July, nine out of ten families will see their benefits rise. |
| The move fulfils a major 2015 election pledge by Prime Minister Justin Trudeau. | The move fulfils a major 2015 election pledge by Prime Minister Justin Trudeau. |
| But it also comes at a time of budget deficit and economic stagnation in the country. | But it also comes at a time of budget deficit and economic stagnation in the country. |
| Child welfare reform has been a pressing issue in Canada since the 1990s, with as many as 14% of the country's children living in poverty, according to national statistics data. | Child welfare reform has been a pressing issue in Canada since the 1990s, with as many as 14% of the country's children living in poverty, according to national statistics data. |
| "The new Canada Child Benefit means more money for healthier groceries, kids' summer programmes, and back-to-school clothes," said Prime Minister Justin Trudeau in a statement. | "The new Canada Child Benefit means more money for healthier groceries, kids' summer programmes, and back-to-school clothes," said Prime Minister Justin Trudeau in a statement. |
| But critics have pointed to the cost - approximately CA$22.8 billion (£13.2 billion) from the federal budget at a difficult moment financially. | But critics have pointed to the cost - approximately CA$22.8 billion (£13.2 billion) from the federal budget at a difficult moment financially. |
| Huge wildfires in Alberta have hurt oil production and Canadian exports performed worse than economists expected during the second quarter of this year. | Huge wildfires in Alberta have hurt oil production and Canadian exports performed worse than economists expected during the second quarter of this year. |
| Payments through the scheme are also fixed rate for the next four years, meaning parents will not see their benefits adjusted according to inflation. | Payments through the scheme are also fixed rate for the next four years, meaning parents will not see their benefits adjusted according to inflation. |
| Top 5 countries for child welfare | Top 5 countries for child welfare |
| Source: UNICEF | Source: UNICEF |
| But optimists hope the pros will outweigh the cons. | But optimists hope the pros will outweigh the cons. |
| The government estimates working-class families will receive an extra CA$2,400 (£1,386) a year on average through the new system. | The government estimates working-class families will receive an extra CA$2,400 (£1,386) a year on average through the new system. |
| Parents with children under the age of six will be eligible to receive CA$6,400 (£3,698) a year, while parents with children between the ages of six and 17 will be eligible for CA$5,400 (£3,120) a year. | |
| The scheme is also more simple than the previous model, which involved Universal Child Benefit and two other benefits installations in tandem. The new scheme involves a single monthly payment and is weighted according to household income. | The scheme is also more simple than the previous model, which involved Universal Child Benefit and two other benefits installations in tandem. The new scheme involves a single monthly payment and is weighted according to household income. |
| "We are punching well below our weight on child poverty," said Iglika Ivanova, Senior Economist for the Canadian Centre for Policy Alternatives, an independent think tank. | "We are punching well below our weight on child poverty," said Iglika Ivanova, Senior Economist for the Canadian Centre for Policy Alternatives, an independent think tank. |
| "I think this is a very positive step. It's incredibly generous. It's even slightly more generous then what many anti-poverty experts have been calling for." | "I think this is a very positive step. It's incredibly generous. It's even slightly more generous then what many anti-poverty experts have been calling for." |
| If successful, Ms Ivanova said the new system could cut child poverty by up to 22% within a year, affecting the lives of 230,000 people. | If successful, Ms Ivanova said the new system could cut child poverty by up to 22% within a year, affecting the lives of 230,000 people. |
| A key test for the reform will be the impact it has on the lives of indigenous Canadians, who suffer greater levels of inequality. | A key test for the reform will be the impact it has on the lives of indigenous Canadians, who suffer greater levels of inequality. |
| As many as 76% of aboriginal residents in Manitoba and 69% in Saskatchewan live below the poverty line. | As many as 76% of aboriginal residents in Manitoba and 69% in Saskatchewan live below the poverty line. |
| The National Post, a conservative Canadian news outlet, has given the new child benefit a lukewarm reception. The biggest change, they argue, will be felt by high-income families. | The National Post, a conservative Canadian news outlet, has given the new child benefit a lukewarm reception. The biggest change, they argue, will be felt by high-income families. |
| Those earning more than CA$180,000 (£104,000) a year will see their child benefits phased out entirely under the new initiative. | Those earning more than CA$180,000 (£104,000) a year will see their child benefits phased out entirely under the new initiative. |
| Economists say the full impact of the reform will not be known for a number of years. | Economists say the full impact of the reform will not be known for a number of years. |
| Find out more | Find out more |
| High poverty among native Canadian children | High poverty among native Canadian children |
| Justin Trudeau: Is the honeymoon over? | Justin Trudeau: Is the honeymoon over? |
| Canada welcomes Syrian refugees | Canada welcomes Syrian refugees |
| Trudeau joins gay pride parade | Trudeau joins gay pride parade |
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