Manitoba government apologizes as part of $530M child welfare lawsuit settlement

The Manitoba government has apologized in the legislature for clawing back federal benefit payments to kids in the child welfare system.

The apology is part of a settlement of a class-action lawsuit, approved by a judge last month, that will see the province pay out $530 million.

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The agreement will compensate roughly 30,000 children who spent time in child welfare, some of whom have since become adults, for money the province took between 2005 and 2019.

The province clawed back a monthly federal benefit called the Children's Special Allowance.

It goes to agencies that care for children and mirrors the monthly Canada Child Benefit cheques given to parents raising children across the country.

Families Minister Nahanni Fontaine says the province is sorry for having withheld the money.

"This was not just a financial mistake. It was a profound injustice leaving some of our most vulnerable children without the supports they needed and rightfully deserved," Fontaine said Tuesday.

"These funds should have nourished your dreams (and) helped you learn, grow and flourish."

The dispute dates back to 2005, when the NDP government of the day started the clawback and said it was warranted.

In 2019, the Progressive Conservative government stopped the practice but also tried to ban any lawsuits over the clawback in a bill that was later struck down.

The plaintiffs said the money was supposed to pay for recreation programs, cultural activities, hockey and a host of other items not covered by basic child welfare funding.

More than 80 per cent of kids in child welfare in Manitoba are Indigenous.

The province and lawyers for the lead plaintiffs later negotiated. They reached the settlement in March, several months after the NDP was back in office.

Kris Saxberg, one of the lawyers for the plaintiffs, has said claim forms are to start being processed in January.

This report by The Canadian Press was first published Oct. 8, 2024.