How much does the federal government spend on child care and who benefits? / : Dépenses fédérales au titre de la garde d'enfants et leurs bénéficiaires

This report examines federal spending on child care, and estimates the fiscal impact of recent announcements to enhance the Universal Child Care Benefit and the Child Care Expense Deduction. [...] This report also provides a distributional analysis and includes the impact the proposed repeal of the Child Tax Credit will have on the value of families’ federal child care benefits. [...] This represents 5 per cent of Summary Figure 1 Total federal spending on child the average Canadian family’s total household care expenses.2 The federal government has two initiatives explicitly and directly linked to defraying the costs of child care expenses, the Universal Child Care Benefit (UCCB) and the Child Care Expense Deduction (CCED). [...] In addition to the changes of the UCCB and CCED, the federal government also proposed As of 2011, roughly 46 per cent of parents were using that the Child Tax Credit (CTC) – a fixed-value, non- some form of non-parental child care. [...] By 2013-2014, the estimated value of the CCED was approximately $0.8 Compared to total household child care expenses, billion (left axis in Figure 2-4), and represented 14.5 the introduction of the UCCB greatly increased the per cent of total household child care expenses (right federal share (58% in 2006-2007).