WINNIPEG — The Manitoba government has agreed to pay $530 million to settle class-action lawsuits over child welfare benefit payments.

The proposed settlement, which still requires court approval, follows a 2022 court ruling that found the province was wrong to claw back hundreds of millions of dollars in federal benefit payments to children  in care.

Lawyers for the lead plaintiffs say the settlement is a significant step forward in rectifying discrimination endured by vulnerable children.

The province’s former NDP government started to claw back the federal benefit, called the Children’s Special Allowance, in 2006. 

The money goes to agencies that care for children and mirrors the Canada Child Benefit.

Manitoba’s Progressive Conservative government ended the claw back in 2019 but also tried to prevent any legal action in a move that was struck down by the courts.

More coming.

The Canadian Press