LONDON – A Liberal government will help families take time off from work to care for seriously ill or aging loves ones and will help with the cost of caregiving through a new Family Care Plan, Liberal Leader Michael Ignatieff announced today.
“All families will face the challenge of caring for a seriously ill or aging loved one, whether it’s an aging parent, a young child or a spouse and partner,” said Mr. Ignatieff, after a meeting with family caregivers and members of the Victorian Order of Nurses. “We don’t want them to go through it alone. A Liberal government will stand with families and help them manage the financial pressures of caregiving.”
With a $1-billion annual investment, the new Family Care Plan will help reduce the economic pressure on hundreds of thousands of struggling Canadian families. The plan includes:
- A new six-month Family Care Employment Insurance Benefit, similar to the EI parental leave benefit, to allow more Canadians to care for gravely ill family members at home without having to quit their jobs; and
- A new Family Care Tax Benefit, modeled on the Child Tax Benefit, of up to $1,350 annually to help low- and middle-income family caregivers who provide essential care to a family member at home.
“Canadian families want to shoulder the responsibility of caring for their loved ones, but they also deserve a government that stands with them,” said Mr. Ignatieff. “Our Family Care Plan reflects the value of family caregivers – their value to our economy, our health, our families, and our communities.”
These new measures will help an estimated 630,000 family caregivers each year. Giving families the choice of providing care at home allows our loved ones to live in dignity as they face their health challenges with their families. Making family care easier will also help to contain health care costs in the long run.
Stephen Harper’s Human Resources Minister, Diane Finley, said that investing in family care is “reckless” and irresponsible. Instead, she recommended that families use “vacation leave” to care for sick and aging loved ones. The failed Conservative budget proposed a meagre tax credit worth only up to $300 that is non-refundable – which means low-income caregivers would get nothing – and no EI benefit to allow caregivers to take time off work.
“Standing with families who care for loved ones makes economic sense for Canada,” said Mr. Ignatieff. “Stephen Harper has done nothing to help caregivers who are forced to choose between working and caring for loved ones, and offered crumbs for those struggling with the added costs of family care. With an aging population, it will only become more difficult for caregivers to make ends meet.
“We can strengthen families – without raising their taxes – if we stop corporate giveaways, control wasteful spending like $30-billion fighter jets, and focus on what really matters: giving every Canadian the tools to succeed.”
BACKGROUNDER
Liberal Family Care Plan
Today, 2.7 million Canadians are family caregivers for seniors. By 2017, Canada’s 150th birthday, it is estimated the number of seniors with chronic conditions requiring home care services will increase by one-third. Family caregivers are responsible for 80% of Canada’s homecare services, providing over $9 billion in unpaid care each year.
Providing family care leads to unexpected out-of-pocket expenses and often results in lost income from work absences in order to provide care. Consider:
- Over 40% of family caregivers use personal savings to make ends meet;
- One-quarter of family caregivers miss one or more months of work to provide care;
- 65% of family caregivers have household incomes under $45,000; and
- Three-quarters of family caregivers are women, who are more likely to have lower wages, less savings and additional responsibilities for child care.
To enhance care for our seriously ill loved ones of any age, and to recognize the important contribution of family caregivers, a Liberal government will invest $1 billion annually in a new Family Care Plan. This will help reduce the economic pressure on hundreds of thousands of struggling Canadian families.
New Six-Month Family Care Employment Insurance Benefit
Under the current Employment Insurance (EI) program for compassionate care benefits, a family caregiver can only receive EI benefits for six weeks and the eligibility guidelines require a doctor’s confirmation that their family member is “gravely ill with a significant risk of death within 26 weeks.”
A Liberal government will replace the six-week compassionate care provision with a new six-month Family Care Employment Insurance Benefit. Our plan will also be more humane by changing the nature of the required doctor’s certificate.
We will build more flexibility into the program by allowing the six months to be claimed in smaller blocks of time over a year-long period and allowing family members to share the six months to provide care.
The new Family Care Employment Insurance Benefit will cost $250 million per year and will help an estimated 30,000 family caregivers. A Liberal government will not increase EI premiums to fund this measure.
New Family Care Tax Benefit
Many family caregivers do not currently pay into EI and do not qualify for the existing EI compassionate care benefit. These family caregivers include some self-employed workers, retirees, or those who have had to quit their job in order to take care of an ill family member.
Canada’s existing caregiver tax credit is also restricted to those caring for family in the same home and does not benefit many Canadians who do not earn sufficient income.
A Liberal government will introduce a new Family Care Tax Benefit to help lower- and middle-income family caregivers, regardless of employment circumstances. To help Canadians defray the cost of providing care to family members in their homes, the new benefit will provide individuals with a tax-free monthly payment worth up to $1,350 per year.
This new benefit will work just like the Canada Child Tax Benefit, and will be available to all family caregivers with family incomes under $106,000 who produce a medical certificate affirming that their ill family member requires a significant amount of personal care and assistance with daily tasks. Families with children who are seriously ill and meet the criteria will also qualify.
The new Family Care Tax Benefit will help an estimated 600,000 family caregivers each year at an annual cost of $750 million.
Supportive Quotes
“CARP members would welcome the promise of $1 billion in annual financial support for family caregivers announced today by Liberal Leader Michael Ignatieff,” said Susan Eng of the Canadian Association of Retired Persons. “CARP has called on all parties for substantive and targeted financial support for the millions of Canadians who care for older loved ones – providing massive savings to the formal health care system while shouldering an extraordinary financial and emotional burden.”
“The FADOQ network has been fighting for better support of family caregivers for a long time. This commitment by the LPC is a step in the right direction. Like many other organizations of Quebec society, the FADOQ network is in favour of keeping at home those seniors who wish to grow old in their own home. The commitments made by the LPC support this type of policy.” – Jean-Claude Grondin, president, FADOQ network.
“This is wonderful news for the millions of caregivers across the country who are providing care and support for loved ones at home,” said Nadine Henningsen of the Canadian Caregivers Coalition. “These measures minimize the financial burden and are critical components of effective policy for family caregivers.”
Questions & Answers
Q: How many times can you claim the Family Care Employment Insurance Benefit under your new plan?
A: To qualify for the Family Care Employment Insurance Benefit caregivers must have 600 qualified hours of work over the last 52 weeks. Caregivers who claimed the benefit several years ago and have gained the requisite hours can claim the benefit again if another family member becomes ill.
Q: If there are multiple family members providing care can multiple family members receive the Family Care Tax Benefit?
A: Just like the Child Tax Benefit, under our proposed Family Care Tax Benefit there can only be one claimant per care recipient.
Q: Will this Family Care Tax Benefit phase out like the Child Tax Benefit?
A: The Family Care Tax Benefit is targeted at low- and middle-income families struggling with the cost of caring for their parents or grandparents. The proposed new Family Care Tax Benefit will work exactly like the Child Tax Benefit. It will give families $1,350 per year, tax free, but will phase out at higher incomes.
Q: How does the Liberal Family Care Plan compare to what the Conservatives are offering family caregivers?
Stephen Harper’s Human Resources Minister, Diane Finley, said that investing in family care is “reckless” and irresponsible. Instead, she recommended that families use “vacation leave” to care for sick and aging loved ones. The failed Conservative budget proposed a meagre tax credit worth only up to $300 that is non-refundable – which means low-income caregivers would get nothing – and no EI benefit to allow caregivers to take time off work.
