Know This: Edition #5

In this edition

• Mark Carney’s big plans for affordability

• The Canada Child Benefit boost

• Update on $10-a-day daycare

• Diddy’s day in court

• Shortcut strawberry shortcake

A Word from the ParentsCanada Team

So much has happened since our last edition of Know This (we wrapped up our election coverage at the end of April) that it was hard to know where to begin for this month’s coverage. So, we just figured we’d do what we do best: identify and investigate some of the issues that matter most to Canadian families.

We know we’ll never manage to hit every news story (oh, how we wish we had the newsroom for that!) but our goal, as always, is to give you the need-to-knows so you can focus your time and energy on the have-to-dos. (Dinner prep, homework help and bathtime supervision don’t care about the news cycle.)

Jane Bradley
President, ParentsCanada

THE BIG STORY

How Mark Carney is Tackling Affordability

What's Happening

Prime Minister Mark Carney is rolling out a bold strategy to tackle Canada’s affordability crisis. His plan includes building more homes every year to address housing shortages, raising the basic personal tax exemption and delivering a middle-class tax cut that would provide tax relief for two-income families.

What You Need to Know

Housing: The federal government aims to build 500,000 homes annually over the next decade to address housing shortages. This initiative includes the creation of Build Canada Homes, a new entity responsible for constructing affordable housing. Additionally, the government plans to invest in low-cost construction financing programs and streamline regulatory barriers to speed up homebuilding.

Basic Personal Tax Exemption: The basic personal amount (which is the income below which people pay no federal income tax) is set to increase to $16,129 in 2025. This adjustment provides additional tax relief to Canadians by reducing the amount of income that can be taxed.

Middle-Class Tax Cut: Effective July 1, 2025, the federal government will reduce the lowest marginal personal income tax rate from 15% to 14%. This tax cut is expected to benefit nearly 22 million Canadians, with two-income families potentially saving up to $840 annually by 2026.

Why This Matters to Families

Cheaper housing and tax savings mean more money for groceries, childcare or saving for the future (post-secondary educations aren’t cheap!). But the impact goes beyond the monthly budget. Stable housing can ease stress, support kids’ education outcomes and improve family well-being. And when families get to keep more of their income, it creates breathing room—whether that’s for extracurriculars, fun things to do together or building an emergency cushion. In a time when so many Canadians are feeling the squeeze, these changes could make a real difference.

THE EXPLAINER

The 2025-2026 Canada Child Benefit Boost

What’s Happening

In July 2025, the Canada Child Benefit (CCB) will rise by 2.7% to match inflation. This tax-free monthly payment supports families with the costs of raising children under 18. Introduced in 2016 to streamline and modernize child benefits, the CCB is designed to:

• Replace and simplify legacy programs (meaning replaced outdated versions of the program)

• Target support to lower- and middle-income households

• Reduce child poverty by helping cover essentials like food, clothing and school supplies

For the 2025-26 benefit year, eligible families can receive:

• Up to $7,997 annually per child under age 6 (an increase of $210 from 2024)

• Up to $6,748 annually per child aged 6 to 17 (an increase of $178 from 2024)

What You Need to Know

Eligibility: Payments are automatic for families who file a tax return, even with no income. Non-parental caregivers (the government calls them “kinship caregivers”), including grandparents, are also eligible

Scaling Support: A household with two children under 6 could receive nearly $16,000 tax-free annually. This amount is divided up and delivered monthly.

Indexing: This is a fancy word that just means annual inflation adjustments ensure the benefit keeps its true value year over year.

Why It Matters to Families

The CCB has played a significant role in reducing child poverty. It’s credited with lifting more than 435,000 children above the poverty line since its launch. For many families, especially those on fixed or modest incomes, the benefit offsets rising costs without clawing back other entitlements like Old Age Security. As affordability pressures remain (everyone is feeling the pinch!), the CCB remains one of the most direct and reliable supports available to Canadian households with kids.

THE HOT BUTTON

$10-A-Day Daycare Update

What’s Happening

Under the federal $10-a-day childcare plan, daycare fees are dropping significantly for families with children under six in licensed centres. While the rollout isn’t without challenges (it’s currently launching a little unevenly), the goal is universal: Make care more affordable, expand access and support parents—especially mothers—who want to return to full-time work. As of 2025:

• British Columbia leads with 96% of eligible centers already at $10/day

• Alberta introduced $15/day fees in 2025, aiming for $10/day by 2026

• Ontario capped fees at $22/day (down from $50+/day in 2023)

• Saskatchewan and Alberta face delays due to funding disputes

• Quebec retains its existing $8.70/day system

What You Need to Know

Here’s what families should keep in mind:

• Cost Savings: Fees have already dropped dramatically, with further reductions expected by 2026.

• Eligibility: The program applies to licensed childcare for kids aged 0–6; additional subsidies are available for lower-income households.

• Access Issues: Not enough spaces have been created yet, leading to long waitlists in many provinces.

• Workforce Concerns: Recruiting and retaining early childhood educators remains a challenge due to ongoing wage gaps.

Why It Matters to Families

Affordable childcare has the power to reshape work-life balance. For many parents, high fees were an issue for full-time employment. With costs falling and access expanding, more families are gaining the flexibility to return to work, increase household income and better manage expenses. The plan isn’t perfect—but it’s already changing what’s possible for working parents.

THE CHATTER

Diddy’s Day(s) in Court

The Sean Combs trial is ongoing—and if you haven’t been following it day by day, it’s easy to get lost in the details. The music mogul, also known as Diddy, faces federal charges in the US including racketeering, sex trafficking and transporting individuals for prostitution. Prosecutors allege he ran a criminal enterprise for more than two decades, using his fame and business empire to exploit women and conceal crimes like kidnapping, arson and forced labour. He has pleaded not guilty.

The case has become a tipping point for discussions around the abuse of power in entertainment. The trial raises important conversations about consent and accountability—especially for parents raising kids in a celebrity-driven culture. It’s a reminder that fame shouldn’t shield anyone from facing consequences.

Combs’s defence claims the relationships were consensual and the charges are exaggerated, while prosecutors continue building their case. Now in its third week, the trial features testimony from more than a dozen witnesses. Combs remains in custody after being denied bail for alleged witness tampering.

THE TREAT

Sheet Pan Strawberry Shortcake

Because if we make it, summer will (finally) come? Here’s hoping. (ICYMI: We’re currently experiencing one of the coldest springs on record.)

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This month’s newsletter was written by Jane Bradley, edited by Katie Dupuis and designed by Tinker Solution.