Two major new programs were announced by the Province today to assist lower income Island families with the costs of child care and prescription drugs.
The programs are part of Prince Edward Island's new Investing In Children and Families Initiative, a longer term strategy to reduce child poverty and assist parents of children in lower income families to better meet their childrens' needs.
The initiative was announced today by Health and Social Services Minister Mildred Dover and Education Minister Chester Gillan.
Minister Dover advised that the investments are part of Prince Edward Island's role in the new National Child Benefit which will provide the province with an additional $1.8 million annually to invest in programs for children and families.
Through the new PEI Child Care Benefit, the Province will invest an additional $600,000 per year in child care subsidies for all lower income working families.
The new funding will be used to enhance child care assistance in three ways:
The present qualifying income scales will be expanded to increase the number of families eligible for child care subsidies. This is expected to benefit at least 100 additional families.
Families currently paying a portion of the fees will no longer be required to do so.
And, finally, the present child care per diem subsidy will be increased for the first time since 1990.
"We have taken this comprehensive approach in response to the recommendations of early childhood workers on how to make child care more affordable for lower income families, and thereby help them to enter and stay in the workforce," said Minister Dover.
Through the PEI Family Health Benefit, the Province will invest $800,000 per year to provide basic coverage for prescription drugs for all Island families with children and annual incomes below $20,000.
Minister Dover indicated that supplementary coverage for prescription drugs will help to ensure that lower income working families do not fall onto social assistance because of the health needs of their children, and to help families on social assistance enter the workforce without losing child health benefits.
Coverage will be provided to all family members through a combination of deductibles and co-pays. The new benefit will provide assistance to many low-income Island families who do not presently have coverage. The program is expected to be implemented early in the new year.
PEI's National Child Benefit reinvestment strategy will also include several community partnership initiatives which will be announced as the initiatives are further developed.
"The programs we are announcing today represent an important first step in Government's longer term commitment to children and families," said Minister Gillan.
"There is overwhelming evidence available on the importance of healthy child development in achieving long-term health outcomes. By investing in children and families, we are investing in our future," he said.
Provincial Attorney General Mitch Murphy advised that initiatives are targeted primarily to lower income working families and children.
"Children are at a greater risk of suffering from poor nutrition, mental and physical health problems, poor school achievement, and of encountering difficulties with the law without the proper support systems. Changes to the Canada Child Tax Benefit will result in about $4 million in additional benefits for PEI families in future years, enabling government sectors to work together to address the many factors that influence child poverty, knowing that work is the best way for low income families with children to leave poverty," he said.