Ottawa has no plans to increase the maximum annual Canada Education Savings Grant despite mounting concerns the program no longer reflects the soaring cost of postsecondary education.A new Department of Social Development report says the federal government will instead focus on encouraging lower-income families to participate in the program rather than updating grant amounts that have remained frozen for nearly two decades.“Current program efforts are focused on better reaching and encouraging families experiencing low income to build education savings,” the department wrote in a report submitted to the Senate national finance committee.Blacklock's Reporter said the Canada Education Savings Grant, introduced in 1998, provides families with a 20% federal subsidy on contributions to Registered Education Savings Plans, up to a maximum annual grant of $500 when families contribute $2,500.That $500 cap has not changed since 2007.The department said it would continue monitoring participation rates and contribution trends but gave no indication grant levels would be adjusted to reflect inflation or rising tuition costs.The issue was raised at a May 5 Senate committee hearing by Quebec Sen. Clément Gignac, who argued the program has failed to keep pace with modern education expenses.“To receive the $500 grant you must contribute $2,500,” Gignac said. “This has been the case for 19 years. Needless to say, education costs are much higher than they were a decade ago.”.Gignac said many parents are struggling financially and grandparents are increasingly stepping in to help fund children’s education.Participation in the program remains relatively limited despite decades of federal promotion.Government figures show only 54% of Canadian families used the grant program last year, roughly matching the record participation rate of 54.6% reached in 2021.Federal research has repeatedly shown the program disproportionately benefits wealthier Canadians who are already more likely to save for university or college.A 2023 departmental evaluation found lower-income families often do not open Registered Education Savings Plans at all because they simply cannot afford to contribute.Among households earning less than $20,000 annually, 60% reported having no savings for postsecondary education.By comparison, 72% of families earning more than $100,000 had RESPs and received government grants.The report found many lower-income parents said they lacked disposable income, planned to help their children later if possible or assumed their children would rely on loans or personal savings.“Almost all parents care about postsecondary education but many for various reasons have not saved for it,” the department concluded.Another federal report published in 2023 similarly found families most likely to benefit from education savings grants were those already in stronger financial positions..Those families generally had higher incomes, owned homes, possessed greater financial resources and had parents with higher levels of education.Families least likely to save for their children’s schooling tended to be younger, have larger households and still carry student debt themselves.The report also identified child care costs as a major obstacle preventing working families from setting aside money for education savings.“Working parents who paid for child care saved less,” the report stated.