The COVID-19 pandemic has tested Canadians in many ways. However, as Canadians work together in the fight against COVID-19, they must continue to plan for the future. For some, this includes saving for their child's education after high school. Supporting families and at-risk communities, and making it easier for them to prepare for life's important milestones, is a core part of the Government's plan to build a stronger and more resilient country.
That is why the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough, today announced up to $6.7 million in funding for Phase II of the Canada Learning Bond Pilot Project, supported by a public call for proposals to choose partner organizations. Through this investment, the Government of Canada will fund projects to help increase awareness of the Bond and reduce barriers to access so that children who need it most can benefit from this education savings incentive.
This second phase builds on the success of Phase I, which provided funding to 12 community-based projects across Canada. Phase I projects are testing innovative approaches to reach vulnerable Canadians where they live and in ways that support their needs. Workshops, one-on-one sessions, animated videos and other creative methods have been used to raise awareness and support enrolment in the Bond in communities across Canada.
For Phase II, eligible organizations may receive up to $1 million in funding over two years for projects that test ways to help people access Registered Education Savings Plans and the Canada Learning Bond. Projects will focus on children from families with low incomes, children of single parents, children in care, children and families living in rural or remote regions of Canada, and youth transitioning to post-secondary education. They will also need to take into account barriers related to the COVID-19 pandemic. Charities and not-for-profit organizations, organizations from the education, social services and employment services sectors, municipalities and Indigenous organizations are encouraged to review the applicant guide and apply by March 17, 2021.
Quotes
"We all want what is best for our children. But some Canadians face challenges, and saving money may not be as easy as it once was. That is why the Canada Learning Bond is such a valuable tool in helping prepare a child for success. And yet, our most vulnerable communities are the ones that face the greatest barriers to accessing this beneficial support. With the funding I am announcing today, we can help reach and support more Canadian families so they can build a better tomorrow."
- Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough
Quick facts
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The Canada Learning Bond is available for eligible children from low-income families born in 2004 or later and provides an initial payment of $500 plus $100 for each year of eligibility, up to age 15, for a maximum of $2,000.
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As part of Budget 2017, the Government of Canada committed $12 million in grants and contributions to launch the Canada Learning Bond Pilot Project. The Pilot Project provides funding to community-based initiatives offering supports that help families plan for their child's post-secondary education.
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The Government of Canada also offers the Canada Education Savings Grant to help save for a child's future. The Grant consists of a basic amount of 20% on the first $2,500 in annual personal contributions to a Registered Education Savings Plan (which is available to all eligible children regardless of family income), as well as the additional amount of the Grant, which is:
- 10% on the first $500 of annual personal contributions for children from families with an adjusted income greater than $49,020 and up to $98,040; or
- 20% on the first $500 of annual personal contributions for children from families with an adjusted income of $49,020 or less.
