The Conservative Party of Canada is promising to boost Registered Education Savings Plan grants and to raise the maximum lifetime grant limit should it form the next federal government.
“Andrew Scheer will make it is easier for Canadian parents to save money to send their kids to college, university, or trade school,” the Conservatives indicated in a backgrounder outlining the promise.
A Conservative government would raise the Canada Education Savings Grant (CESG) amount to 30% from the current 20% on annual contributions of up to $2,500 in a year. This change would raise the maximum annual CESG to $750 from $500.
The parliamentary budget office’s costing of the program says the new amount would take effect beginning in 2022.
The Conservatives would also raise maximum lifetime CESG to $12,000 from the current $7,200.
In a background document outlining the promise, the Tories point out that existing additional CESG amounts provide low-income earners with an additional 20% on the first $500 they deposit each year, and middle-income earners an additional 10% over and above the 20% basic CESG rate.
With the Tories’ boost to 30%, low-income earners would now receive a total of 50%, or $250, on the first $500 of contributions, while middle-income earners would receive 40%, or $200.