BC Training and Education Savings Grant

Summary

Established under the BC Liberals in 2015, the BC Training and Education Savings Grant (“BCTESG”) is marketed as a universal $1,200 grant for families to support post-secondary savings. In practice, the program disproportionately benefits wealthy families — those who are already engaged with financial institutions, already saving, and already likely to send their children to college. Meanwhile, the families who need help most aren’t getting it.

Problem

There are two seemingly minor barriers to entry to access these funds. A parent must:

  1. Establish a SIN for their child and open a RESP account. 

  2. Complete and submit the Employment and Social Development Canada, BCTESG Application Form; Annex D.

As of December 2023, a total of 263,550 children have received the BCTESG. As quoted by the Ministry of Education and Child Care: “The more than $316 million in grants issued, represents approximately 50% of the estimated eligible cohorts.”

The process for applying is a high barrier to entry for low-income, newcomer, and less financially literate families. In other words, the $1,200 "universal" grant is functionally gated.

Solution(s) 

1: Needs-test to save money.

  • Example: Families who have a combined taxable income of $200,000 do not qualify.

2: Expand eligibility timeframe.

  • Currently, the application window is between the ages of 6 to 9. Expanding the application timeframe from 0 to 24 years ensures all eligible children have sufficient time to apply.

Andrew Johns