The federal government is again increasing the Canada Child Benefit (CCB) to keep pace with the increased cost of living.
As of July 2026, the maximum annual amounts increase to $8,157 for a child under 6 years of age, and $6,883 for a child aged 6 until 18. These payments (and their provincial equivalents) are income-tested, and as such, may be reduced by the household income earned (reported annually via income-tax return). The reduction could be as much as 31% on each dollar earned, depending on total household income and the number of children.
While many plaintiffs may see a reduction in their household earnings due to their injury, any reduction in the CCB could have a harmful impact on their family and livelihood. For individuals who settle their personal injury claim(s), income earned on your settlement does not have to reduce your ability to provide for your family.
A structured settlement can protect your CCB – and other benefits – from any reduction.
Take the example of an Ontario family with two children aged 8 and 12, who have a taxable income of $60,000.00. The increases for 2026 mean they will receive up to $336 more in Canada and Ontario Child Benefits than they did in 2025.
See the following table (1) where we illustrate this “invisibility”.
Table 1 – Impact of income earned from settlement dollars on entitlement to child and other benefits.
A personal injury settlement that is invested and earning income conventionally could significantly reduce entitlement to various government benefits, potentially losing plaintiffs thousands of dollars per year.
Not only are structured settlement payments tax free, they are also not reported to be income at all. No matter the amount of the structured settlement payment, it will never decrease your entitlement to income tested benefits.
Your settlement dollars are meant to protect your needs, not reduce your ability to care for your family.