The P.E.I. government needs to stop clawing back the National Child Benefit from families on social assistance, the National Council of Welfare says.

'We do feel we reach a great many families through our programs.'— Bob Creed, provincial director of social programs

The council, an arms-length advisory group for the federal minister of human resources, notes P.E.I. is now in a minority among the provinces in clawing back the federal benefit. On the Island the money counts as income and is deducted from what a family receives from the province.

"That just traps people further into poverty," council chair John Rook told CBC News this week.

"By doing clawbacks on child benefits and things, you're actually hurting the ones that are going to be the leaders in your province someday."

The National Council of Welfare was joined in its call by the P.E.I. Advisory Council on the Status of Women. In June, the Advisory Council produced a report card looking at the provincial government's progress on certain issues, including the clawback of the National Child Benefit.

"I would like to see them consider leaving it there for families to help them meet their basic needs," advisory council chair Isabelle Christian said.

While the province does claw back the benefit, some of that goes directly back to low-income families through the provincial Healthy Child Allowance, said Bob Creed, director of social programs for the province. That program provides funding to help kids participate in cultural and recreational activities.

The rest goes into other programs, including child-care subsidies, adult literacy programs and dental care for children.

"We do feel we reach a great many families through our programs and services that are offered in the province," he said.

Creed said he can't say how much the province claws back from the National Child Benefit.

The National Council of Welfare calculates the province held back about $800 per family in 2007. A little more than half of that gets returned through the Healthy Child Allowance.