Income Exemption for Child Support Payments

Year
2014
Number
B12
Sponsor(s)
Maple Ridge

WHEREAS one out of seven children in BC live in poverty and the poverty rate for children headed by lone-parent families is one of the highest poverty rates of any family type; AND WHEREAS the Ministry of Social Development and Social Innovation claws back child support payments dollar for dollar although the financial loss to families far outweighs the gains for the provincial government, and it is recognized that child support payments are the right of the child: THEREFORE BE IT RESOLVED that the provincial government amend the Employment and Assistance Regulation and the Employment and Assistance for People with Disabilities Regulation to add an unearned income exemption for child support payments up to 300 per family unit per month.

Provincial Response

Ministry of Social Development Social Innovation The Government of B.C. recognizes the importance of family maintenance for families receiving disabilities and income assistance. From December 3, 2013, to March 11, 2014, Government consulted with British Columbians to better understand how government, businesses and communities can increase accessibility and decrease barriers for people living with disabilities. Providing an exemption for child support payments for disability assistance clients was one of the ideas raised by members of the public during this consultation. As part of Accessibility 2024, the government made a commitment to consult on family maintenance payments for families receiving disability assistance and income assistance. This consultation is currently underway and will run until February 28, 2015. Any changes or improvements identified will then be considered by government. In addition to their rate, families on income assistance have full access to a range of federal and provincial tax credits and benefits that are delivered through the income tax system. These programs constitute a large part of the financial assistance received by families and include the Canada Child Tax Benefit, the National Child Benefit SupplementBC Family Bonus, the BC Climate Action Credit and others. A single parent with two children under 6 can get almost 900 per month in these benefits. And starting in 2015, the BC Early Childhood Tax Benefit will provide these families with another 55 per month, per child. The Ministry of Social Development and Social Innovation considers child and spousal support family maintenance payments to be unearned income. Unearned income also includes other income sources such as the Canada Pension Plan and Employment Insurance. These payments provide basic financial means and support from sources other than income assistance. Clients must access these sources of unearned income before receiving assistance. Since 1997, individuals have been required to assign their maintenance rights to the Ministry as a condition of eligibility. As a free service to those families, the Ministry will obtain a maintenance order and enroll the family in the Family Maintenance Enforcement Program, which is delivered by the Ministry of Justice and Attorney General. Those families continue to benefit from the order and free enforcement when they leave assistance. The practice of deducting family maintenance income from income assistance and disability assistance has been part of BCs welfare regime since at least 1976. BC family maintenance policy is generally consistent with other provinces, with two exceptions. Currently, Quebec allows a 100 per child monthly exemption on child support payments and Albertas disability program allows a full exemption.

Convention Decision
Endorsed