Question Period Note: CERB OVERPAYMENTS AND NOTICES OF DEBT

What is Service Canada doing with regard to Canada Emergency Response Benefit (CERB) notifications and overpayments?

• The Government of Canada’s intention was to act as quickly as possible to get money into the pockets of Canadians facing financial adversity.
• The Government is aware that some Canadians have received payments for which they are not entitled to as a result of the CERB advance payments.
• For this reason, Notices of Debt were sent to Canadians who have outstanding balances.
• In order to prevent undue hardship for recipients, flexible repayment options are available and can be discussed with the Canada Revenue Agency

Many clients who applied for the CERB through Service Canada before June 14, 2020 received a $2,000 advance payment of four weeks, which was issued 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.

The maximum amount of CERB that clients should have received is $500 per week during the period for which they were eligible. To confirm eligibility with Service Canada, clients should have completed reports every two weeks.
To reconcile this advance payment for Canadians who remained eligible for CERB, in the summer of 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 receive CERB payments 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.
Both ESDC and the CRA are working together to ensure that repayments received by each department are properly directed and applied.
As of September 2, 2022 1.8 million clients who have an outstanding overpayment as a result of the advance CERB payment, have received a Notice of Debt containing the outstanding balance with repayment instructions and an outline of their appeal rights.

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