Feds to spend millions to reverse low take up rates for low-income benefits
OTTAWA — The Liberals are looking beyond the bureaucracy to figure out how to spend more than $1 billion in uncollected benefits meant to help low-income families save for their children’s post-secondary education.
Federal officials have tried for years, with only limited success, to boost take-up of the Canada Learning Bond, which gives up to $2,000 to a registered education savings plan (RESP) for eligible children.
An estimated 1.8 million children don’t receive the benefit — about two-thirds of those eligible — while the government estimates that at least $900 million in available program funds are going unclaimed.
The most recent attempt to cut those numbers was a “nudging” trial that made small changes to the letters family receive about the benefit. The results led to a small bump in uptake: about four per cent for those who received personalized letters, or roughly $1.18 million more in benefits than would have otherwise been paid out over the seven-month test.