The Prince Edward Island Child Benefit is launching in January 2025 as part of the province’s response to rising living costs for families.
Across Prince Edward Island, households are struggling with higher prices for essentials such as groceries, housing, and childcare. As a result, this new provincial benefit, delivered with the support of the Canada Revenue Agency, aims to provide consistent and predictable monthly assistance alongside federal programs.
What is the Prince Edward Island Child Benefit?
The Prince Edward Island Child Benefit (PEICB) is a provincial program that gives monthly, tax-free payments to eligible families with children under 18. The benefit is meant to help families afford daily essentials like groceries, clothing, and school supplies.
The Canada Revenue Agency manages the PEICB, which is issued together with the federal Canada Child Benefit as one monthly payment.
Who qualifies for the PEICB eligibility requirements?
To qualify for the Prince Edward Island Child Benefit (PEICB), you must meet the following five criteria:
- PEI resident: You must be a current Prince Edward Island resident. Temporary absences don’t affect eligibility if PEI remains your primary residence. New residents become eligible once they establish residency.
- Parental Responsibility: You must be the parent or primary caregiver of children under 18. These children must live with you. Shared custody arrangements follow CCB rules for primary caregiver designation.
- Income Limits: Your family’s net income cannot exceed $80,000 annually. This includes combined income for couples. Single-parent households use individual income only.
- Tax Filing Compliance: Annual tax return filing remains essential for benefit continuation. Both parents must file returns yearly. Missing tax filings result in benefit suspension until returns are current.
- Canada Child Benefit Enrollment: Active CCB registration is mandatory for PEICB eligibility. You cannot receive PEICB without first qualifying for CCB. This ensures consistent federal-provincial benefit coordination.
How much money will I receive from the PEI Child Benefit?
The PEI Child Benefit provides financial support to families with children under 18. The amount you receive is based on your adjusted family net income as reported to the Canada Revenue Agency (CRA).
There are two payment tiers:
- $30 per month, per child ($360 annually) for families with an adjusted net income under $45,000.
- $20 per month, per child ($240 annually) for families with an adjusted net income between $45,000 and $80,000.
If your family’s adjusted net income is $80,000 or more, you are not eligible for the benefit. The benefit is not reduced gradually; it stops completely once your income hits this threshold. (Source)
How do I apply for the Prince Edward Island Child Benefit?
If you already receive the CCB, there’s no need to apply separately for the PEICB; you’ll get it automatically if you qualify based on your income tax information and residency.
The system checks your eligibility for the provincial benefit using your existing tax and benefit information. If you are not yet receiving the CCB, you’ll need to apply for that first. Here’s a summary of what to do:
- Register your child’s birth with Vital Statistics.
- Apply for the CCB. You can do this quickly and easily through your CRA My Account or by filling out Form RC66.
- File your taxes every year. This is crucial for both you and your spouse or common-law partner.
- Make sure your personal information is up to date with the CRA, including your correct PEI address and direct deposit details.
The CRA usually takes about eight weeks to process new applications for the CCB. Once your application is approved and the system confirms that you live in PEI and meet the income requirements, your PEI Child Benefit payments will begin.
To avoid any delays, please ensure that your address and tax information are kept current with the CRA.
What documents prove my eligibility for the PEI Child Benefit?
Your yearly tax return is the main document you need to qualify for PEICB. By provincial rules, both spouses have to submit a tax return each year, even if they didn’t earn any money. The Canada Revenue Agency uses this tax information to check if you live in the province, how much income you have, and who is part of your family.
In addition to your tax return, you may need to provide:
- Proof of birth for each child (birth certificate or registration)
- Residency confirmation (driver’s license, lease agreement, utility bills)
- Banking information for direct deposit setup
- Custody agreements for separated parents
Remember to keep these documents accessible for potential CRA reviews because there may be random audits to verify continued eligibility for provincial benefits. At that time, you must provide the requested information promptly to prevent payment interruptions.
When does the PEI Child Benefit start?
The first PEICB payment arrives January 20, 2025, according to provincial announcements. Payments continue monthly on the same date as your CCB deposits.
The benefit period runs from July to June each year. The initial period covers January to June 2025. July 2025 begins the first full benefit year through June 2026.
Payment dates follow the federal CCB schedule exactly. Most families receive deposits on the 20th of each month. Some may receive payments on different dates based on their CCB arrangement.
Missing payments should prompt immediate review of tax filing status. Delayed tax returns often cause payment interruptions. Contact CRA directly for payment status inquiries.
Can I receive PEICB with shared custody arrangements?
Shared custody affects benefit amounts based on the percentage of time each parent has the child. According to CRA rules, parents sharing custody equally each receive 50% of the benefit amount. The system calculates this automatically when both parents are CCB recipients.
Primary custody situations award full benefits to the parent with whom the child primarily resides. Court orders or separation agreements help establish custody percentages. Both parents must maintain PEI residency for their portion of benefits.
Custody changes require immediate notification to avoid overpayments. Use Form RC65 to update custody arrangements with the CRA. Delayed reporting may result in repayment requirements.
If you live outside PEI, your province may offer similar programs to help with the cost of raising children, such as:
- Alberta Child and Family Benefit
- Newfoundland and Labrador Child Benefit
- New Brunswick Child Tax Benefit
- Ontario Child Benefit
- Nova Scotia Child Benefit
The bottom line
The Prince Edward Island Child Benefit marks a meaningful step toward making life more affordable for Island families. Starting January 2025, this program puts money directly into parents’ pockets without red tape or complicated applications.
For many families, this benefit won’t solve every financial challenge. But it will ease some pressure. It means saying yes to that school field trip, buying fresh fruit without checking the price first, or having a small cushion for emergencies.
The real success of PEICB will be measured in reduced family stress and improved opportunities for children. When parents worry less about making ends meet, children grow up in more stable environments with better access to experiences that shape their futures.
FAQs related to Prince Edward Island Child Benefit
Is there a limit to how many children can receive the PEI Child Benefit?
No, there's no limit to the number of children who can receive the benefit. Each child under 18 in your care who meets the eligibility criteria will receive the appropriate monthly payment based on your family income.
Do foster parents qualify for the PEI Child Benefit?
Yes, foster parents can receive the PEICB if they're receiving the Canada Child Benefit for the foster children in their care. They must meet all other eligibility requirements, including PEI residency and income thresholds.
Can I receive the PEI Child Benefit if I'm on maternity or parental leave?
Yes, you can receive the PEICB while on maternity or parental leave. Your eligibility is based on your family's net income from the previous tax year, not your current employment status.
Can grandparents receive the PEI Child Benefit?
Yes, grandparents can receive the PEICB if they are the primary caregivers of their grandchildren and receive the Canada Child Benefit for them. They must meet all eligibility requirements, including income and residency criteria.
Will receiving the PEI Child Benefit affect other government benefits?
No, the PEICB won't affect your eligibility for other government benefits. Since it's tax-free and not considered income, it won't impact benefits like the GST/HST credit, employment insurance, or social assistance.
Can I receive the PEI Child Benefit if my child attends school outside PEI?
Yes, as long as you maintain PEI residency and your child under 18 primarily lives with you, temporary absences for education don't affect eligibility. The key requirement is that you and the child maintain PEI as your primary residence.
Is there an asset or savings limit for the PEI Child Benefit?
No, there's no asset or savings limit for the PEICB. Eligibility is based solely on your family's net income, not on assets like savings accounts, property, or investments.
Can I opt out of receiving the PEI Child Benefit?
While there's no formal opt-out process mentioned in the program documents, you can contact the CRA if you don't wish to receive the benefit. However, since it's tax-free and doesn't affect other benefits, there's typically no advantage to refusing it.
