Appeal Number 2022-0215 Part C Decision Under Appeal The decision under appeal is the Ministry of Education and Child Care (the ministry) Reconsideration Decision dated September 1, 2022, in which the ministry denied request for Affordable Child Care Benefit. The ministry determined the appellant is not eligible for the Affordable Child Care Benefit beginning September 1, 2022, due to the annual income being too high.
Part D Relevant Legislation Child Care Subsidy Act (CCS Act), Section 4. Child Care Subsidy Regulation (CCS Regulation), Sections 7, and 9.
Employment and Assistance Act (EAA), Section 22(4). The relevant legislation is provided in the Appendix.
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Appeal Number 2022-0215 family. Without childcare, I cannot go back to work to support my family and this will make me seek further social assistance. With Request for Reconsideration, she submitted the following documents: o Bank statements from February 2022 to July 2022 o Supplier Gas bill o Tenancy agreement o Carrier mobility bill
In the Affordable Child Care Benefit application dated 15 July 2022 the appellant stated she has been on Maternity Leave for this past year 2021-2022 and will be returning to work September 2022. Her normal consistent income from her job has changed and decreased since being on Maternity Leave. It has been very difficult for her family.
Additional Information Submitted after Reconsideration In the Notice of Appeal, the appellant states that the family income is $136,102.00 on paper
expenses. The list is the same letter that was provided to the ministry and is shown above in the information available at reconsideration with an additional sentence that states that their monthly spending is increased from $6090 to $6590 and that unfortunately on top of these expenses the family is unable to afford childcare.
On October 12, 2022, the Appellant provided a 22-page submission (the Appellant Submission) comprising:
Daycare Receipts for September/October - Shows how much daycare costs are monthly between the appellant and her spouse. Royal Bank Investment Transaction - Her spouse had to pull $2400 from his RRSP to pay for September's daycare for the children. Western Union Receipt - brother-in-law from overseas has sent the family $1162.00 to help family pay for October's daycare fees for the children. Renewal of increased home rental agreement - landlords have raised the cost of the family monthly rent. From $2250.00 now to $2300.00.
Hearing The hearing was held as a videoconference. Appellant
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Appeal Number 2022-0215 At the hearing the appellant was accompanied by her spouse as a support person. The appellant provided verbal authorisation for her spouse to act as her advocate and oral testimony was then provided by both family members during the hearing.
The appellant recounted the information provided to the ministry and contained in both the notice of appeal and the written submission. The advocate stressed that he has had to withdraw monies from his RRSP to pay childcare, which will mean he will also take a tax hit at the end of the year, and also that a family member has sent $1162 from overseas to pay for October childcare.
The spouse stated that the appellant will have to stop work to care for the children if they cannot get support from the ministry.
In answer to questions during the hearing the appellant agreed that they have no dispute with the figure of $136,102 as annual income but stated that the actual monthly bank income is $6000 per month. When asked to reconcile how this figure is arrived at the advocate explained that his employment income (EI) payments of roughly $2000 equals $6000 actual income.
In a series of questions with the appellant and spouse they confirm that the taxable income reported by their tax return preparation company for the year 2021 totals $136,102. This figure for January to June 2021 and maternity employment income payments for September to December 2021.
Ministry The ministry relied upon the reconsideration decision. At the hearing the ministry states that the legislation uses gross income adjusted for family status and does not take into account family
adjusted to $129,102, which is above the maximum legislated amount of $111,000.00 therefore the family is not eligible for childcare.
The ministry stated that as part of the application the appellant and spouse provide consent to the disclosure of information from their income tax records and the ministry has accessed this information for 2021.
The ministry also stated that if the appellant believes there is going to be a variance in the family income, she can request an income review. However, the ministry believes that as the appellant has gone back to work full time the appellant will be making more money and the actual gross
tax returns, but they can look at the changes if requested to see if the income threshold test is met.
In answer to questions from the panel the ministry confirmed that the $111,000.00 threshold test is based on a comparison to the family gross income adjusted for family members, and that there is a sliding scale for eligibility based on the type of childcare required and the total adjusted family income.
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Appeal Number 2022-0215
In further discussion the appellant stated that her annual salary as a teacher is in the range of $61,000 to $62,000 per year.
Admissibility of new information Section 22(4) of the EAA says that a panel may consider evidence that is not part of the record that the panel considers to be reasonably required for a full and fair disclosure of all matters related to the decision under appeal. Once a panel has determined which additional evidence, if any, is admitted under EAA Section 22(4), instead of asking whether the decision under appeal was reasonable at the time it was made, a panel must determine whether the decision under appeal was reasonable based on all admissible evidence.
In this case the appellant provided oral and written testimony providing greater detail on the family finances and childcare expenses.
The panel admits the new information under section 22(4) of the Employment and Assistance a full and fair disclosure of all matters related to the decision under appeal.
Findings of Fact The panel finds the 2021 income for the appellant to be $56,048.00, inclusive of salary and maternity employment income payments, and the income for the spouse of $80,054.00 for a total family income of $136,102.00.
The panel finds the Affordable Child Care Benefit Application, completed by the appellant, requests full time licenced group care for both children.
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Appeal Number 2022-0215 Part F Reasons for Panel Decision The issue on appeal is the reasonableness of , as the family income exceeds the income range used to calculate a maximum benefit and a partial subsidy, the appellant is not eligible for the Affordable Child Care Benefit beginning September 1, 2022.
In particular, was the ministry reasonable in calculating the amount of subsidy that the family may be eligible to receive through consideration of the type of childcare requested and calculation of the adjusted family income.
The relevant legislation is provided in Appendix A.
Appellant Position The appellant argues that her family live in BC, one of the most expensive provinces in Canada. As a mom, she has been on maternity leave since September 2021. Her husband has a fulltime job and works out of province. On paper they are a middleclass family, however, are struggling because of vital bills.
The appellant argues the family has essentials and personal expenses, gas for the family car, or oil changes/car maintenance which varies from $1500 to $2000 per month, and income is about $6000.
Moving forward, the appellant states she will be returning to the classroom as a fulltime teacher this September to help support her family financially. However, they are unable to pay $2400 daycare fee, and is asking for empathy on behalf of her family.
Recently son has been diagnosed with Autism and a Global Developmental Delay and this year has already been challenging enough for her family. Without childcare, she cannot go back to work to support her family, and this will make her seek further social assistance.
Ministry Position The ministry states that income ranges for each type of childcare setting are set in legislation, which means that the ministry does not have any discretion to grant a subsidy if an applicant's income is higher than regulations permit. To calculate the amount of subsidy that a family is eligible to receive the ministry must consider the type of childcare requested and the adjusted family income.
The ministry adjusted family income is $129,102.00, it exceeds the income range for a maximum benefit for licensed group childcare, and the income range for a partial benefit for licensed group childcare, and the appellant is therefore not eligible for the Affordable Child Care Benefit.
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Appeal Number 2022-0215
Panel Decision The relevant legislation is contained in the Child Care Subsidy Regulation (CCS Regulation), Sections 7 and 9. Section 7 states that an applicant is not eligible for a child care subsidy if the family's adjusted annual income equals or exceeds $111,000.00 for a child receiving child care in a licensed child care setting.
Section 9 states that the minister must calculate the family's adjusted annual income by adding the applicant and the applicant's spouse annual income, and deducting from the amount any applicable amounts as follows; (a)$0 for the first dependant in the family who is not a child with special needs; (b)$2 000 for each additional dependant in the family; (c)$3 000 for each child with special needs in the family.
The panel has found the total annual family income for 2021 to be $136,102.00. Based on the circumstances of the appellant the panel finds that amount may be reduced by $4 000 for the two dependent children and by $3 000 for the child with special needs, for a total adjusted annual income of $129,102 which exceeds the income range used to calculate a maximum benefit or a partial subsidy.
The panel notes this adjusted family income exceeds the amount of $111,000 provided in section 7 of the legislation for a child receiving childcare in a licensed childcare setting and the panel therefore finds the ministry was reasonable in finding the appellant is not eligible for a childcare subsidy.
Summary The panel finds that the family adjusted income exceeds the income range used to calculate a maximum benefit and a partial subsidy and therefore the appellant is currently not eligible for the Affordable Child Care Benefit.
Conclusion Based on all available evidence t reconsideration decision is supported by the evidence and is a reasonable interpretation of the legislation in the circumstances of the appellant.
confirmed. The appellant is not successful on appeal.
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Appendix A
Appeal Number 2022-0215 CHILD CARE SUBSIDY ACT
Child care subsidies 4 Subject to the regulations, the minister may pay child care subsidies.
CHILD CARE SUBSIDY REGULATION
Income test
7 (1)An applicant is not eligible for a child care subsidy if the family's adjusted annual income equals or exceeds the following: (a)$111 000 for a child receiving child care in a licensed child care setting;
Calculation of family's adjusted annual income 9 (1) In this section, "previous year" means the year previous to the current calendar year. (2) In relation to a child care subsidy that is to be determined based on a family's adjusted annual income, the minister must calculate the family's adjusted annual income as follows: (a) by adding, for the applicant and the applicant's spouse, if any, the annual income for the person determined under subsection (3) or (4), as applicable; (b) by deducting from the amount calculated under paragraph (a) any applicable amounts under subsection (5). (3) For the purposes of subsection (2), the minister must calculate the annual income of the applicant and the applicant's spouse, if any, by (a) determining the person's income for the previous year, or for the year before the previous year if a notice of assessment is not available for the person for the previous year, as (i) the amount reported on line 150 of the person's notice of assessment if there has been no notice of reassessment for the applicable year, or (ii) if there was a notice of reassessment for the person, the amount reported on line 150 of the notice of reassessment, and
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Appeal Number 2022-0215 (b) deducting from the income determined under paragraph (a) all amounts, if any, reported on line 145 of the applicable notice of assessment or notice of reassessment under paragraph (a). (5) For the purposes of this section, the following deductions may be made, if applicable: (a) $0 for the first dependant in the family who is not a child with special needs; (b) $2 000 for each additional dependant in the family; (c) $3 000 for each child with special needs in the family.
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Part G Order The panel decision is: (Check one)
APPEAL NUMBER 2022-0215
Unanimous
By Majority
The Panel Confirms the Ministry Decision Rescinds the Ministry Decision If the ministry decision is rescinded, is the panel decision referred back to the Minister for a decision as to amount? Yes No
Legislative Authority for the Decision: Employment and Assistance Act Section 24(1)(a) or Section 24(1)(b) Section 24(2)(a) or Section 24(2)(b)
Part H Signatures Print Name Don Stedeford
Signature of Chair
Date (Year/Month/Day) 2022 October 20
Print Name Janet Ward
Signature of Member
Date (Year/Month/Day) 2022 October 20
Print Name Glenn Prior
Signature of Member
EAAT003 (17/08/21)
Date (Year/Month/Day) 2022 October 20
Signature Page