Question Period Note: CERB REPAYMENTS

Some Canadians who have reimbursed their CERB are still receiving letters indicating that they still owe money to the Government. When will this situation be rectified?

The Government acted as quickly as possible to get money into the pockets of Canadians. Many of those who applied for the CERB from Service Canada received an advance payment. Individuals who returned to work prior to the advance payment being reconciled may be required to make a repayment.

ESDC has received a large number of CERB repayments, some of which have not yet been reflected in individuals’ monthly statements of account. The Department is working to correct the situation as soon as possible.

The Government recognizes that the need to repay emergency benefits could be challenging for some individuals. The Government is committed to treating all Canadian citizens fairly when dealing with repayment situations as well as upholding responsible stewardship of public funds.

The Canada Emergency Response Benefit (CERB) was put in place on an urgent basis and provided immediate income to more than 8.9 million Canadians when they needed it most. This benefit was administered jointly by the Canada Revenue Agency (CRA) and Service Canada. The CERB was an important and necessary temporary response to support Canadians who have stopped working due to COVID-19.

Many clients who applied for the CERB through Service Canada before June 14, 2020 received a $2,000 advance payment within a few days of applying. This was an advance of four weeks of the CERB, which was issued in order to get money in pockets as quickly as possible. This approach was adopted because Service Canada’s CERB payments leveraged the EI systems, which normally make payments in arrears. Contrary to the Canada Revenue Agency (CRA) model, which is designed to pay in advance, clients would have experienced delays in receiving their first payment. CERB applicants with claims processed on or after June 14, 2020, did not receive an advance payment of $2,000.

To reconcile this advance payment for Canadians who remained eligible for CERB, in summer 2020, the Department applied this advance against other payment periods in June, July and August (for weeks 13 and 14 as well as for weeks 18 and 19 of their claim), where recipients saw an interruption in payments in order to apply the money paid to weeks of eligibility.

If recipients were not entitled to and/or did not claim CERB for at least 20 weeks, some or all of the advance payment remained as an outstanding balance owing. The advance payments to 1 million clients were fully reconciled.

Notices of Debt containing the outstanding balance, repayment instructions, and appeal rights were sent to the 1.8 million clients who have an outstanding overpayment as a result of the advance CERB payment.

The Government of Canada will work with Canadians who may be required to make a repayment to establish flexible repayment schedules with an eye to their ability to pay. In addition, no penalties or interest will be charged on the emergency benefit overpayment. Canadians will not be put into financial hardship by having to repay emergency benefits they received to which they were not entitled.

To discuss payment arrangements, clients should contact the Canada Revenue Agency at 1-866-864-5823.

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