Question Period Note: EMPLOYMENT INSURANCE – EMERGENCY RECOVERY BENEFIT ADVANCE PAYMENT

Why are some CERB recipients receiving Notices of Debt for up to $2,000?

• From the beginning of the COVID pandemic, the Government of Canada has been committed to supporting Canadians with benefits like the Canada Emergency Response Benefit (CERB).

• When Canadians first applied for the CERB with Service Canada, they received an advance payment of $2,000. This was an advance of four weeks of the CERB, which was issued in order to get money into the pockets of Canadians as quickly as possible.

• 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. This approach allowed the Department to fully reconcile the advance payment for more than one million clients.

• Clients who did not have an active claim during this time, did not have the advance payment applied against the subsequent weeks. Anyone who received more weeks of benefits than the number of weeks for which they were eligible, will have to repay the excess amount.

• To avoid causing undue hardship, the Government is establishing flexible repayment plans, if needed. Canadians can discuss their payment options, including making a payment arrangement, with the Canada Revenue Agency.

Since the beginning of the COVID-19 pandemic, the Government of Canada has delivered emergency benefits rapidly to millions of Canadians in need, including the Canada Emergency Response Benefit (CERB). The CERB was delivered jointly by Service Canada and the Canada Revenue Agency.
As part of its response to the COVID-19 pandemic, the Government of Canada implemented an attestation-based approach to enable fast delivery of emergency benefits to millions of Canadians.

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.

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 full 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 19 and 20 of their claim), where recipients saw an interruption in payments in order to apply the money paid to weeks of eligibility. Through this approach more than one million advance payments were fully reconciled. 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.
As of March 2022, 327 000 clients who have an overpayment as a result of the advance CERB payment, have received a Notice of Debt containing the outstanding balance they need to repay, as well as outlining their appeal rights and how they can proceed with repayment.

The latest COVID-19 wave (Omicron) began in early December 2021 with the ensuing lockdown measures, and in turn, EI claim intakes began to rise. As a result, Notices of Debt to affected clients were paused. The Department re-commenced sending Notices of Debt for the remaining clients at the beginning of March 2022. Clients with an outstanding balance will be notified in the coming months.

Appeal rights

Any client who disagrees with a decision of the Commission may request a reconsideration of that decision. A request for reconsideration should be submitted within 30 days after the decision was communicated.

If the request for reconsideration is submitted after 30 days, the client must provide a reason for the delay. Service Canada can still accept the request, if it is determined that there is a reasonable explanation for the delay.

If the client disagrees with the decision made on their request for reconsideration, they can further appeal this decision to the Social Security Tribunal General Division.

Repayment

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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