Automatic enrolment for Canada Learning Bond

Summary#

This Order brings certain parts of the Budget Implementation Act, 2024, No. 1 into force the day after the order is made. It lets Employment and Social Development Canada start setting up automatic enrolment for the Canada Learning Bond, so eligible children who are not already RESP beneficiaries can be placed into a government-opened RESP.

What it does#

• Brings into effect changes in the Budget Implementation Act, 2024, No. 1 that let the federal minister begin an automatic enrolment system for the Canada Learning Bond.
• Changes the definition of a primary caregiver in the Canada Education Savings Act so it covers people responsible for children who are not yet RESP beneficiaries.
• Requires the minister to notify caregivers when a child is eligible for the Canada Learning Bond and, in many cases, to open a Registered Education Savings Plan (RESP) for that child if one hasn’t been opened.
• Allows caregivers to still apply for the Bond themselves or to opt out of automatic enrolment.
• Authorizes the minister to:
  • enter into an agreement with a service provider to administer RESPs opened by the government, and pay that provider from public funds;
  • collect Social Insurance Numbers (SINs) of eligible children and, for children under 18, the SIN of the child’s primary caregiver and that caregiver’s cohabiting spouse or common-law partner.
• Brings in consequential changes to the Income Tax Act to adjust definitions of an education savings plan and its subscriber so the minister can be an RESP subscriber.
• Gives authority to make regulations that will set details such as the maximum age for automatic enrolment, how Bond payments are handled in government-opened RESPs, and how those RESPs are administered.

Who's affected#

• Children eligible for the Canada Learning Bond who are not yet named RESP beneficiaries — the government will focus first on children born in 2024 and after.
• Caregivers and families with low incomes, including groups that have had lower uptake of the Bond (the source mentions Indigenous families, single-parent families, and families with very low incomes).
• RESP industry participants such as banks, scholarship plan dealers, and potential service providers (one RESP provider will be chosen through a competitive process).
• Federal departments involved in delivery, including Canada Revenue Agency and Service Canada, which were consulted in design.
• It is unclear from the order whether and how other groups (for example, provinces or existing RESP account holders) will be directly affected beyond the items listed.

Why it matters#

• The Canada Learning Bond can add up to $2,000 to an eligible child’s RESP, but uptake has been low — about 43.1% of eligible children had received it as of 2023. Automatic enrolment aims to increase access for families who face barriers.
• Caregivers will start getting notifications: some already received letters beginning in November 2024, and more information on how to opt out was scheduled for fall 2025. The first RESPs opened by the minister are intended to begin in 2028 after consultations and a provider selection.
• Practically, this could mean more children from low-income families automatically receive the Bond unless a caregiver opts out, and it creates a new government role in opening and managing some RESPs.
• The changes also involve collecting SINs for children and caregivers, which is relevant for privacy and administrative processing.