Municipality of Chatham-Kent

Health and Family Services

Employment and Social Services

Information Report

To: Mayor and Members of Council

From: Mary Alice Searles, Supervisor, Employment and Social Services

Date: November 19, 2015

Subject: Canada Learning Bond Promotions

This report is for the information of Council.

Background

Employment and Social Services is involved in an initiative to bring awareness to the Canada Learning Bond, a no-fee, no-contribution government grant into a Registered Education Savings Plan (RESP). Involvement initiated through the Canada Learning Bond Champions’ Network, an engaged group of organizations across Canada who are passionate about bringing awareness to this program, and leadership coming from the federal government through Employment and Social Development Canada who oversees the RESP program. The Canada Learning Bond Champions’ Network hosted their first Education Savings Week in November 2014, coinciding with Financial Literacy Month and National Child Day. It is anticipated that this will become an annual event. This year, Education Savings Week was November 16-20, with activities held across Canada to bring awareness to the Canada Learning Bond and the importance of saving for post-secondary education. Some Chatham-Kent activities include:

Municipal Drawing Contest Library book displays, bookmarks and reading lists Email to staff and Council from the Chief Administrative Officer encouraging

promotion and enrollment in RESP’s Contact with financial institutions in Chatham-Kent Free Movie Night at the Capitol Theatre Toolkit and website promotions Ontario Works draw for participants who enroll in November 2015 RESP Sign Up Event at Chatham Employment Resource Centre Social media promotion

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The 2004 Canadian federal budget introduced the Canada Learning Bond (CLB) as a way to encourage lower and modest income families to start RESP’s and save for post- secondary education. The Canada Learning Bond is for families in receipt of the National Child Benefit Supplement, a part of the Child Tax Credit that is given to families below a certain income threshold. For 2015/2016, this income threshold for families with one to three children is just under $45,000 net (line 236 of Income Tax Return).

The Canada Education Savings Grant (CESG) is the second type of government grant into an RESP. In this program, the government adds 20 cents for every dollar contributed up to a maximum of $500 per year on a $2,500 contribution. With the Additional Canada Education Savings Grant (A-CESG), an additional 10-20 cents on every dollar can be made on the first $500 contributed annually. Qualifying for the A-CESG is based on income.

Comments

Only 23% of eligible families are receiving the Canada Learning Bond in Chatham-Kent. The current Ontario average is 33% and the 2014 Canadian average 31%. Chatham-Kent is presently below the provincial and federal participation rates. Currently in Chatham-Kent, 9,341 children qualify for the Canada Learning Bond and 2,135 children are receiving it. This is a significant gap to close as there are still 7,206 children to reach.

Chatham-Kent has a lower than provincial average of post-secondary education attainment. The last census data we have for educational attainment (2006) shows that just over 50% of the population at that time had either Grade 12 or lower as their highest level of education. According to Employment and Social Development Canada, having an RESP significantly increases the chances that a child continues their education after high school. Ensuring all children have access to RESP’s, and especially the no-fee, no-contribution Canada Learning Bond, can help more children stay in school and continue education after high school. The long-term goal is to increase the level of education in Chatham-Kent and have more citizens with degrees, diplomas and certificates.

Employment and Social Services is promoting the Canada Learning Bond as part of a poverty reduction strategy. The 2014 CK Counts report noted that 11% of people living in Chatham-Kent receive social assistance compared to the provincial average of 7%. In order to reduce the Ontario Works caseload, it is important to ensure people are qualified for the jobs that are in the community and will be attracted here in the future. It is important to support development of a skilled labour force to reduce the number of people who rely on social assistance, to strengthen earning power and to ensure Chatham-Kent has a skilled, trained workforce to assist employer attraction efforts by Economic Development. Participants who have a diploma, degree or post-secondary certification are more likely to exit Ontario Works after brief support from Employment and Social Services, while those who have Grade 12 or less as their highest level of education, remain on assistance longer, and in some instances, for generations. 79% of

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Ontario Works participants have either not completed Grade 12 (46%) or have Grade 12 (33%) as their highest level of education. According to Employment and Social Development Canada, 71% of jobs in the future are going to require post-secondary education. In order to meet the goal of a reduction in the Ontario Works caseload, and to have a strong skilled labour force, it is important to support Chatham-Kent citizens to be able to continue education after high school and to help them begin planning early for their children’s post-secondary education.

As an Ontario Works office, the Employment and Social Services Case Managers are in a prime position to talk to those in receipt of Social Assistance about the benefits of the Canada Learning Bond and to encourage them to sign up. Case Managers can ensure clients know the CLB is a no-fee, no-contribution required RESP, and they can discuss barriers and provide supports, such as helping to obtain birth certificates, Social Insurance Numbers (SIN) numbers and photo identification. All families in receipt of Ontario Works who have children born in 2004 and later would benefit from this bond due to the income thresholds necessary to qualify for Ontario Works. The CLB does not affect eligibility for social programs, which is one barrier connected with enrollment; while many types of assets do affect eligibility for programs, RESP’s do not. Employment and Social Services has been promoting the CLB since 2012, distributing federal brochures with every Intake that has qualifying children and talking to clients about the benefit of this program.

Employment and Social Services has engaged a number of community partners, and agencies including the Prosperity Roundtable, who are joining in promotions and helping to share the importance of enrolling in RESP’s and more specifically, the Canada Learning Bond.

Employment and Social Services approached the Chatham-Kent Community Leaders’ Cabinet, who has endorsed the campaign and committed to achieving a target of 70% of eligible families receiving this benefit in five years. In addition, a partnership between the Chatham-Kent Community Leaders’ Cabinet, Employment and Social Services and the Chief Administrative Officer’s office has resulted in a toolkit to help organizations promote. The toolkit is both in printed form as well as a digital online toolkit. The digital toolkit, found at www.learnck.ca, includes a web banner, brochures, posters, newsletter samples, social media support and sample emails. The web pages are in partnership with the Prosperity Roundtable and are located on their website. The Education Working Group of the Prosperity Roundtable has incorporated the Canada Learning Bond into its portfolio.

Best Start has provided brochures to every child attending a child care centre. The elementary, high school and post-secondary schools in Chatham-Kent participated in a Canada Learning Bond video in partnership with the Chatham-Kent Community Leaders’ Cabinet and the Municipality.

The Mayor has sent a letter to the financial institutions in Chatham-Kent, providing them the new toolkit, advising of Education Savings Week and informing them that there will

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be a 2016 meeting to bring them together in order to discuss promotions of the CLB from their perspective.

Employment and Social Services has connected with other Municipal divisions who are also in a position to connect with citizens and staff: Children’s Services; Housing Services; Public Health; Riverview Gardens; Library Services; Community Services; and the Chief Administrative Office.

Why does the Canada Learning Bond campaign matter?

There are families in our community who could never imagine their child obtaining a post-secondary education. We can help shift the mindset.

In 2015, only 23% of eligible Chatham-Kent families took advantage of the Canada Learning Bond. We need to ensure 100% of families know about it and reach our goal of 70% participation in five years.

As a community, by helping promote the Canada Learning Bond, we are saying education is valuable for employment, health and quality of life.

Education is expensive and families will benefit from planning early. According to Employment and Social Development’s Canada Education Savings Plan 2014 Reporti, 80% of families who obtain the Canada Learning Bond contribute their own money, benefiting from further government grant money in the form of the Canada Education Savings Grant (CESG) and Additional Education Savings Grant (A-CESG). Benefiting from both grants will increase the saving potential for RESP’s.

Education is a key factor in a child’s chance to avoid poverty. The Canada Learning Bond will help to make post-secondary education a vision and then a reality.

Participation rates in the Canada Learning Bond can be tracked, allowing staff to monitor whether the promotions are having an impact on families and resulting in increased enrollment in the Canada Learning Bond. The true success will be in the longer term, as more children use their RESP’s, continuing their education after high school, resulting in more citizens with certificates, degrees and diplomas, thus providing a skilled workforce and reduced reliance on Social Assistance programs.

Financial Implications

There are no financial implications.

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Prepared by: Reviewed by:

Mary Alice Searles, HBComm, BA Valerie Colasanti, B.A. CMM lll Supervisor, Employment and Social Services Director, Employment and Social Services

Reviewed by:

April Rietdyk, RN, BScN, MHS, PhD PUBH General Manager, Health and Family Services

i Link to the 2014 Canada Education Savings Plan Annual Statistical Review at www.esdc.gc.ca/en/reports/cslp_cesp/cesp_2014.page 

P:\RTC\Health & Family Services\2015\Employment and Social Services\Canada Learning Bond Promotions.docx

                                                            

Municipality of Chatham-Kent Employment & Social Services

Division

The Canada Learning Bond

Participation Rates for the CLB

Ontario Participation is 33%

45.6%

33.7%

20.7%

26.2%

30.9%

42.9%

18.7%

26.8%

54.6%

0% 20% 40% 60%

NO CERTIFICATE; DIPLOMA OR DEGREE

HIGH SCHOOL DIPLOMA OR EQUIVALENT

POSTSECONDARY CERTIFICATE; DIPLOMA OR DEGREE

Percentage (%)

Educational Attainment

Ontario Works CK Ontario

• There are families who could never imagine their child obtaining post secondary education. We can help change the mindset.

• When the community promotes, we are saying education is valuable for employment, health and quality of life.

• Education is not getting any cheaper. Saving earlier will help prepare.

Promotional Activities

Canada Learning Bond Promo Video

Questions?