2 Big Changes in Canada’s 2025 Federal Budget: Key Benefits and New Proposals

Canada Child Benefit Extended in 2025 when a Child Dies

The 2024 federal budget introduced several important policy changes aimed at supporting Canadian families and children. Among these proposals are modifications to the Canada Child Benefit (CCB), measures to increase access to the Canada Learning Bond (CLB), and other initiatives that will have a significant impact on both individuals and families across the country. Here’s a breakdown of the most noteworthy updates.

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Canada Child Benefit Extended After a Child’s Death

One of the most heart-wrenching situations a parent can face is the loss of a child. To offer support during such a difficult time, the 2024 federal budget proposes an important change to the Canada Child Benefit (CCB). Currently, if a child dies, the benefit stops being paid the month following the child’s death. However, under the new proposal, the CCB and Child Disability Benefit would continue for six months after the death of a child, starting in January 2025.

This change is designed to provide some financial relief during the grieving process, allowing parents additional time to adjust to their loss. To qualify, the CCB recipient must notify the Canada Revenue Agency (CRA) of the child’s death before the end of the month following the death. This proposed policy change is expected to cost the government $15 million over five years, starting in the 2024–25 fiscal year, with ongoing annual costs of $4 million.

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Increased Access to the Canada Learning Bond

Another key proposal in the 2024 budget focuses on expanding access to the Canada Learning Bond (CLB), which helps families save for their children’s post-secondary education. Starting in the 2028–29 fiscal year, if a child does not have a Registered Education Savings Plan (RESP) by age four, the government will automatically open one for them and enroll them in the Canada Learning Bond (CLB).

The CLB offers $500 in the first year a child is eligible and an additional $100 for each subsequent year, up to age 15, for a total maximum amount of $2,000. This move is intended to ensure that more children, especially those from low-income families, can access funds for higher education.

In addition, the government is proposing an extension of the retroactive eligibility period for the CLB, allowing families to claim the bond for children up to age 30, rather than the current age limit of 20. This extension aims to help individuals who may not have been aware of the CLB when they were younger but still wish to take advantage of the benefit for their educational future.

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A Commitment to Strengthening Family Support

These proposed changes to the Canada Child Benefit and Canada Learning Bond represent a continued effort to support Canadian families in meaningful ways, both during times of personal loss and in planning for a brighter future. The federal budget reflects an ongoing commitment to addressing the challenges that families face, ensuring that financial support is available when it’s needed most.

These changes will come into effect starting 2024–25, and it’s important for eligible families to be aware of the new rules and how they may benefit from them in the years to come.

About Sophie Wilson 756 Articles
Sophie Wilson is a finance professional with a strong academic background, having studied at the University of Toronto. Her expertise in finance is complemented by a solid foundation in analytical and strategic thinking, making her a valuable asset in the financial sector.

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