Question Period Note: CANADIANS WAITING TO HAVE THEIR CERB ELIGIBILITY STATUS REVIEWED MAY STILL LOSE MONEY TO CLAWBACKS

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

The Government’s intention was to act 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.

For those who returned to work prior to that advance payment being reconciled, they may be required to make a repayment.

Beginning in late 2021, Service Canada sent Notices of Debt to those who have outstanding balances.

In order to prevent undue hardship, 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.

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 an outline of appeal rights were received by the 1.8 million clients who have an outstanding overpayment as a result of the advance CERB payment.

Les Canadiens ayant présenté une demande de PCU à Service Canada ont reçu un paiement de 2 000 $. Il s’agissait d’un paiement à l’avance correspondant aux quatre dernières semaines de la PCU, qui a été émis afin de mettre de l’argent dans les poches des Canadiens le plus rapidement possible.

Pour rapprocher ce paiement anticipé, qui a été versé pour aider les Canadiens qui sont demeurés admissibles à la PCU, Service Canada a pris les mesures qui s’imposaient pour rapprocher entièrement les paiements versés à plus d’un million de clients.

En novembre 2021, Service Canada a commencé à communiquer directement avec les personnes qui ont cessé de recevoir la PCU après leur retour au travail et avant que ce paiement anticipé ne soit rapproché.

Au 5 mai 2023, 1 108 676 clients avaient entièrement remboursé leur dette pour un total de 1,86 milliard de dollars, et 340 878 clients avaient partiellement remboursé leur dette pour un total de 253.9 millions de dollars. Au total, des remboursements correspondant à 2,11 milliard de dollars ont été effectués. Un solde de 1,0 milliard de dollars demeure impayé.

L’ARC est responsable du recouvrement de ces dettes dues à EDSC, et a conçu des modalités de paiement élargies afin d’offrir aux clients une plus grande souplesse de remboursement et d’éviter les difficultés excessives.