Federal finance minister Jim Flaherty has received recommendations from an expert panel appointed last summer to examine ways to help parents save for the long-term financial security of a child with a severe disability.

The report prepared by the panel recommends that parents of severely disabled children should be able to set aside up to $200,000 tax free for their care, in the same manner that parents can now create savings plans for the higher education of their children.

The panel also calls on Ottawa to provide parents of children with severe disabilities with cash grants of at least $1,000 annually over 20 years, and to double those payments to low-income families.

“On behalf of Canada’s New Government, I wish to thank the panel for taking the time away from family and work to assist us on addressing this important issue,” said Flaherty. “Government must better enable parents to set aside funds today to financially support a child with a severe disability, when they are no longer able to provide support. I look forward to reviewing the panel’s advice on how this objective could be achieved.”

The government has yet to respond formally to the report.