Universal Child Care Benefit (UCCB) Increase
Posted 26 Jun 2015 by Rick Irwin, CFP, CLU
There is no doubt that raising a family today is an expensive endeavor. Since 2006, the Universal Child Care Benefit (UCCB) has provided modest financial support to Canadian families by providing $100 per month for each child under six years of age. As of 2015, the government will replace the Child Tax Credit (CTC) with an expanded and enhanced UCCB. The UCCB will increase to $1,920 per year ($160 per month) for each child under the age of six. The benefit also will be expanded by providing $720 a year ($60/month) for each child aged six through 17.
The first enhanced payment will be issued in July 2015 and will include any retroactive payments for the period of January 2015 to June 2015. This will result in families receiving $420 for each child under the age of 18.
Families will automatically receive the payment if they have previously applied for or received the CCTB or UCCB. If you have not previously applied for the CCTB or UCCB for some of your children, you will need to apply. You can apply online by using “Apply for child benefits” through Canada Revenue Agency’s (CRA) My Account online service, or you can fill out Form RC66, Canada Child Benefits Application, and send it to your tax centre with the supporting documents. If your personal information has changed since you received the CCTB or UCCB, you should contact the CRA to update your records to ensure you receive the correct UCCB payment.
Many parents regularly contribute the UCCB they receive to their children’s registered education savings plan (RESP), to receive a further 20 per cent in government grants. If you choose to put this lump sum benefit into an RESP it would result in an additional $500 in savings for university. If you are interested in doing so, or in increasing your RESP contributions to reflect the new enhanced UCCB, please contact our office anytime.
The information provided is accurate to the best of our knowledge as of the date of publication, but rules and interpretations may change. This information is general in nature, and is intended for informational purposes only. For specific situations you should consult the appropriate legal, accounting or tax advisor.