Some parents with young kids in Nunavut say the federal government's handout of increased child benefits does little to help them meet their daycare needs and that the money would be better spent on a national childcare program.

"I'd like my kids to go into daycare but it's so expensive that this money wouldn't even make a difference," says Allison Ford who has four children. "I have a cousin with two children and they pay $1,400 a month for two children and that's with a subsidy."

Two of Allison's kids are under the age of five, she says she has been on the waiting list for daycare for years. Meanwhile, she is a stay at home mom, taking care of her children as well as lending a hand to friends and neighbours when they need childcare.

"There's a lot of it that goes on here because there's so many people on the daycare list that you need to find people that could open their homes and have children come in there," says Ford.

Ford says she's grateful for the extra cash from the enhanced child benefits because there are many things that she needs for her children, such as clothes and school supplies, but she is also making sure not to spend all the money since it's taxable.

Martha Ejesiak says enriched child benefits will help with her four kids, but would be better used on schools. (Sima Sahar Zerehi/CBC)

Benefit is taxable

Overall, Canadian parents should expect to keep about one-third of the amount they receive, in many cases that amount is less than a quarter.

"It's like someone inviting you for dinner and you go to the bathroom and they take the money out of your wallet," says Paul White, a father of a five-month old baby girl.

'The childcare benefits to me, especially the raising of it to $160, seems to be an election ploy,' says Paul White, the father of a 5-month-old baby girl. (Sima Sahar Zerehi) White says he hopes that when his wife is ready to return to work a daycare space will be available. They've been on the waiting list even before their daughter was born.

The boosted benefit was created by the Conservative government out of the old child-benefit system. The Tories cancelled daycare agreements with the provinces in 2006. White is skeptical about the motivations behind the benefits in an election year.

"The childcare benefits to me, specially the raising of it to $160, seems to be an election ploy."

Nunavut has one of the highest rates of childbirth per capita in the country with more than 5,000 children under the age of six.

Earlier this week parents with daycare-aged children received a one time payment of $520 per child. Their regular monthly benefits also increased from $100 to $160. The benefits were also expanded to include children ages 6 to 17 years of age; their parents will received $60 per month.

Nunavut parents don't just want to see that money go towards daycare.

Martha Ejesiak told the CBC the money would be better used in schools.