Utoo Radio - March 26, 2024 - The Manitoba government has reached an agreement in principle to provide $530 million in compensation to children in care. This compensation is related to the province's actions and policies regarding the administration of Children's Special Allowances from Child and Family Services agencies between 2005 and 2019.

Three class action lawsuits were filed to seek damages for Manitoba's violation of the Charter rights of vulnerable children. The settlement is intended to provide compensation to the children impacted, handle legal expenses, and manage funds for the members of the class.

Subject to court approval, this groundbreaking settlement represents a major milestone in addressing the injustice faced by vulnerable children in care. Every child impacted by the CSA policy will receive compensation, including interest and additional funds for damages and costs, through the establishment of a resolution fund.

As per federal legislation, CSA payments are provided to CFS Agencies as a substitute for the Canada Child Benefit that parents in Manitoba receive. The CSA benefits should only be utilized for the care, education, training, and advancement of children in care.

Throughout a span of 14 years, Manitoba mandated CFS agencies to contribute more than $335 million of the federal CSA payments to Manitoba's general revenue fund.

In light of legal challenges, the Manitoba government enacted legislation in 2020 to absolve the province of any legal obligations. In 2022, the Court of the King's Bench made a decision regarding a constitutional legal challenge prompted by legislation. The court found that Manitoba's CSA policy and related legislation worsened the existing disadvantages faced by children in care and violated their Charter rights to be free from discrimination.