The Child Benefit: Its Usage and Improvement Options

Abstract

Implemented in September 2018 pursuant to the Child Benefits Act, the Child Benefit was initially paid to families in the bottom 90 percent of the countable-income distribution for children under 6 years of age. The Child Benefit was made universal in January 2019 and extended further in January 2022 to cover children up to 7 years old. Survey findings suggest that families primarily allocate the child benefits they receive toward expenses such as food and snacks, followed by purchases of baby-and-child items, savings, insurance, investment, and stocks for the child, as well as fees for private early education. Recipients gave the Child Benefit an overall satisfaction score of 5.7 on a 10-point scale, slightly above the midpoint. In addition, over 50 percent of respondents reported that the Child Benefit had a positive influence on their decision to have children. For the Child Benefit to better serve as a means of promoting the fundamental rights of children and as an effective response to low fertility situations, it should be made available to children over a wider age range and paid in increased amounts.