June 29, 2015 – Gatineau, Quebec – Employment and Social Development Canada
The Honourable Pierre Poilievre, Minister of Employment and Social Development, today marked the end of the school year by highlighting the Harper Government’s continued commitment to enhancing access to post-secondary education by removing financial barriers for families.
Minister Poilievre outlined the details of federal education savings incentives available to families under the Canada Education Savings Program, including the Canada Education Savings Grant (CESG) and the Canada Learning Bond.
The CESG is money offered by the Government of Canada to encourage families to start saving early for their children’s post-secondary education. To further kick-start education savings for low-income families, the Harper Government provides the Canada Learning Bond to children who are eligible to receive the National Child Benefit Supplement when a Registered Education Savings Plan (RESP) is opened on their behalf. To receive the CESG, annual contributions must be made to an RESP, however no contributions are required to receive the Canada Learning Bond.
Minister Poilievre also reiterated the importance of measures that the Harper Government is introducing to help families prosper. These measures include enhancements to the Canada Student Loans Program, increases to the Universal Child Care Benefit (UCCB), the introduction of the Family Tax Cut and improvements to the Child Care Expenses Deduction and the Children’s Fitness Tax Credit.
The Government of Canada invests significantly in helping all Canadians save for, finance and repay their post secondary education. These measures include the Registered Education Savings Plan, the Canada Learning Bond, the Canada Education Savings Grant, Canada Student Loans and Grants and the Repayment Assistance Plan.
Canada Education Savings Program
The Canada Education Savings Program provides education savings incentives to encourage and reinforce the importance of early and sustained saving for a child’s post-secondary education, specifically using Registered Education Savings Plans (RESPs).
An RESP is a special savings plan, like a savings account, that helps save money for a child’s education after high school. RESPs allow your savings to grow tax-free. RESPs also make it possible to receive extra money through the Government of Canada’s education savings incentives—the Canada Learning Bond and the Canada Education Savings Grant (CESG).
The CESG is money that the Government of Canada will add to a child’s RESP to help their savings grow. A child could receive up to a lifetime maximum of $7,200.
There are two types of Grants:
- Basic Grant: The Government will add 20 cents on every dollar on the first $2,500 contributed each year to an RESP. A child can receive up to $500 a year and up to a lifetime maximum of $7,200.
- Additional Grant: Depending on the net family income, a child could also receive an extra 10 percent or 20 percent on every dollar of the first $500 contributed each year.
The Canada Learning Bond is $500 offered by the Government of Canada to help parents start saving for their child’s education. Plus, a child could get an additional $100 every year until he or she turns 15 years old, to a maximum of $2,000. Parents, or primary caregivers, do not have to contribute any of their own money, but an RESP must be opened.
To receive the Bond, a child must have been born in 2004 or later. The primary caregiver must also receive (or have received) the National Child Benefit Supplement under the Canada Child Tax Benefit (sometimes known as the “family allowance” or “baby bonus”).
Since the introduction of the Canada Learning Bond in 2005, the Government of Canada has paid out $605 million to over 716,000 beneficiaries.
For more information on federal savings incentives, visit CanLearn.ca.