Policy Options for Retargeting the Canada Child Benefit

Abstract

The Canada Child Benefit (CCB) is the nation’s second largest cash transfer program, and it contributes significantly to reducing child poverty. The program could be further targeted to poverty reduction either through federal program changes or by giving each province the discretion to vary its parameters on a cost-neutral basis. This article describes the CCB, documents the eight provincial child benefit programs, and investigates various scenarios for federal reform of or provincial variation in the CCB. The article presents simulated impacts of the cost-neutral policy scenarios on distribution and incentives for various groups, with a special focus on sole-parent families, and it assesses major related policy considerations.