Question Period Note: Overview — Tabling of the Supplementary Estimates (C) for Fiscal Year Ending March 31, 2026

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (C) for fiscal year ending March 31, 2026?

ESDC is requesting adjustments for:
Table1: Voted Appropriations (in dollars)
A. Voted Appropriations
Operating
Vote 1
Grants and Contributions
Vote 5
Debt Write-offs
Votes 10 & 15
Total
1. Funding to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans
0
0
184,659,450
184,659,450
2. Funding for retroactive compensation
12,434,649
0
0
12,434,649
3. Funding for collection activities for Canada Emergency Response Benefits overpayments
5,813,735
0
0
5,813,735
4. Funding to authorize the inclusion and adjustment of an
0
0
1
1
1: The one-dollar item is used to add the vote wording for Vote 15 – Debt Write-off – Government Annuities Account
Table 2: Transfers (in dollars)
Table 3: Budgetary Statutory Authorities (in dollars)
C. Budgetary Statutory Authorities
Total
7. - Old Age Security payments - Guaranteed Income Supplement payments - Allowance payments
-1,589,000,000
-773,000,000
-24,000,000
8. - Canada Student Grants - Payments under the Apprentice Loans Act (ALA) - Payments under the Canada Student Financial Assistance Act (CSFAA)
772,298,364
145,682
30,234,696
9 Canada Education Savings Grant payments Canada Learning Bond payments
30,000,000
-3,000,000
10. Canada Disability Savings Bond payments Canada Disability Savings Grant payments
15,290,000
95,600,000
11. Contributions to employee benefit plans
378,208
Sub-total Budgetary Statutory Authorities
-1,445,053,050
authority embedded in a vote wording1
Sub-total Voted Appropriations
18,248,384
0
184,659,451
202,907,835
B. Transfers
Operating
Vote 1
Grants and Contributions
Vote 5
Debt Write-offs
Votes 10 & 15
Total
5. Internal reallocation of resources for the write-off of debts owed to the Crown related to overpayments from the Government Annuities Account
-18,637
0
18,637
0
6. From the department of Employment and Social Development to the department of Crown-Indigenous Relations and Northern Affairs for the Indigenous Early Learning and Child Care Transformation Initiative
0
-6,351,755
0
-6,351,755
Sub-total Transfers
-18,637
-6,351,755
18,637
-6,351,755
Table 4: Summary of Total Budgetary Authorities (in dollars)
Budgetary Authorities
Transfers
Adjustments
Total
Vote 1 – Operating expenditures
-18,637
18,248,384
18,229,747
Vote 5 – Grants and Contributions
-6,351,755
0
-6,351,755
Vote 10 & 15 – Debt Write-off
18,637
184,659,451
184,678,088
Total Voted Appropriations
-6,351,755
202,907,835
196,556,080
Statutory
0
-1,445,053,050
-1,445,053,050
Total Budgetary Authorities
-6,351,755
-1,242,145,215
-1,248,496,970
Table 5: Statutory Non-Budgetary Authorities (in dollars)
D. Statutory Non-Budgetary Authorities
Total
12. - Loans disbursed under the Canada Student Financial Assistance Act - Loans disbursed under the Apprentice Loans Act
1,728,361,055 4,083,874
Total Statutory Non-Budgetary Authorities
1,732,444,929

A. Voted Appropriations
1. Funding to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans - $184.7 million
ESDC is requesting an amount of $184.7 million to write-off 19,217 debts related to Canada Student Direct Loans (CSL) and 18 debts related to Canada Apprentice Loans (CAL) in these Supplementary Estimates.
The CSL and CAL write-off is related to student loan debts for which all reasonable collection efforts have been exhausted.
The write-off of unrecoverable Canada Student Loans and Canada Apprentice Loans is an annual accounting exercise, approved by the National Write-Off and Remissions Review Committee.
Removing these student loan debts from Canada Student Financial Assistance Program accounts reduces the total portfolio size, providing room within the portfolio’s regulatory limit, allowing for more student loans to be available to Canadians.
This year's write-off of $184.7 million (compared to a final write-off amount of $197.2 million in the fiscal year 2024 to 2025) represents less than 1% percent of the Canada Student Loan Program and Canada Apprentice Loans portfolio value, which is consistent with the proportion of loans written off in previous years, and the trend is expected to continue.
ESDC is requesting authority to include $184,659,450 in Vote 10 (Debt write-off) to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans as part of the 2025–26 Supplementary Estimates (C).
2. Funding for retroactive compensation - $12.4 million
ESDC is requesting a reprofile of $14.6 million over two years, from the consolidated revenue fund (CRF), for Results of Reclassification in Pensions and Integrity Operations to address a longstanding, high-risk policy grievance concerning the reclassification of Program and Services Delivery Clerk (PSDC) positions, some of which were found to be performing higher-level duties. $12.4 million is the CRF portion of the reprofile to the fiscal year 2025 to 2026.
The funding will be used to implement a comprehensive settlement for two groups: 150 employees who filed grievances in 2019 and a larger cohort of former incumbents who were excluded from the original 2019 retroactive payments. Following the implementation of a comprehensive outreach strategy, the department projects a potential volume of up to 1,000 additional claimants, thereby resolving all outstanding claims and preventing future litigation on this matter.
ESDC is requesting authority to include $12,434,649 in Vote 1 (Operating expenditures) for Results of Reclassification in Pensions and Integrity Operations as part of the 2025-26 Supplementary Estimates (C).
3. Funding for collection activities for Canada Emergency Response Benefits overpayments - $5.8 million
Budget 2025 committed additional resources for the continued collection of Emergency Benefits overpayments. This investment will provide the department of ESDC with the necessary resources to meet its legal obligation to create an overpayment and stewardship obligations to collect debts owed, demonstrating the Governments continued commitment to the financial stewardship of its social benefits programs.
To support Canadians through the pandemic, the Canada Revenue Agency (CRA) issued the Canada Emergency Response Benefit (CERB) and the Canada Employment Student Benefit (CESB) on behalf of the department of Employment and Social Development Canada (ESDC) starting in March 2020. ESDC administered the Employment Insurance Emergency Response Benefit (EI ERB).
The limitation period to proceed with collection activities is six years from the date of establishment. As of March 2025, there is more than $1 billion in EI ERB overpayment outstanding that the CRA is pursuing for collection on behalf of ESDC. In addition, ESDC must pursue reconciliation activities.
ESDC is requesting authority to include $5,813,735 in Vote 1 (Operating expenditures, excluding EBP costs of $378,208) for the Collection Activities for Canada Emergency Response Benefits Overpayments as part of the 2025-26 Supplementary Estimates (C).
4. Funding to authorize the inclusion and adjustment of an authority embedded in a vote wording
This item concerns the creation and approval of a new Vote 15 for ESDC to record the write-off of debts owed to the Crown related to overpayments from the Government Annuities Account. A nominal amount of one dollar is presented, as no additional funding is required, however, an amount must be shown for parliamentary approval of the item. The new vote is necessary, along with an internal transfer from Vote 1 to Vote 15, to enable the write-off of debts owed to the Crown related to the overpayments from the Government Annuities Account (see item #5)
B. Transfers
5. Internal reallocation of resources for the write-off of debts owed to the Crown related to overpayments from the Government Annuities Account – $18,637
The department is requesting a transfer of $18,637 from Vote 1 (Operating Expenditures) to Vote 15 (Debt write-off – Government Annuities Account) to allow the write-off of debts due to the Crown related to 377 overpayments from the Government Annuities Account.
After all collection efforts have been exhausted, and the overpayments cannot be recovered, the debts are then considered for write off.
The Government Annuities Account write offs pertain to debts from 2020 to 2025, the majority of overpayments resulting from late notification of death.
ESDC is requesting authority to transfer $18,637 from Employment and Social Development Vote 1 (Operating expenditures) to Vote 15 (Debt write-off - Government Annuities Account) as part of the 2025-26 Supplementary Estimates (C).
6. From the Department of Employment and Social Development to the Department of Crown-Indigenous Relations and Northern Affairs for the Indigenous Early Learning and Child Care Transformation Initiative – Decrease of $6.3 million
Budget 2021 committed $2.5 billion over 5 years and $542 million annually ongoing, to support Indigenous Early Learning and Child Care.
Under the Indigenous Early Learning and Child Care Transformation Initiative (Indigenous ELCC Initiative), Indigenous partners have the flexibility to request that some or all of their funding be advanced through existing funding agreements with federal departments that deliver Indigenous ELCC programs. These departments include Employment and Social Development Canada, Indigenous Services Canada, the Public Health Agency of Canada and Crown-Indigenous Relations and Northern Affairs Canada.
First Nations partners in the Yukon region, Quebec region and the Northwest Territories have requested adjustments to the delivery arrangements for the fiscal year 2025 to 2026 Indigenous ELCC funding. To implement these leadership requests a transfer of $6.3 million to the department of Crown-Indigenous Relations and Northern Affairs is sought.
ESDC is requesting authority to include $6,351,755 in Vote 5 (Grants and Contributions) for CIRNAC under the IELCC as part of the 2025-26 Supplementary Estimates (C).
C. Statutory Budgetary Authorities
7. Old Age Security Program – decrease of $2.4 billion
It is estimated that approximately $83.1 billion in Old Age Security program benefits will be paid to eligible beneficiaries in the fiscal year 2025 to 2026.
The decrease in estimated expenditure for the Old Age Security program benefits is mainly due to:
• A lower estimate number of beneficiaries for all the programs under the Old Age Security program
• A lower estimated average monthly benefit for all the benefits under the Old Age Security program; and
• An increase in the estimated amount recovered from higher income seniors through the Old age Security Recovery Tax
Old Age Security Payments – Decrease of $1,589.0 million
• a decrease in the estimated number of OAS pension beneficiaries from 7.68 million to 7.60 million, accounting for a decrease of $744.6 million;
• a decrease in the estimated average monthly benefit for the OAS pension from $738.26 to $733.44, accounting for a decrease of $442.4 million; and
• an increase in the estimated amount of benefit repayment for the OAS pension under the OAS Recovery Tax from $3,375 million to $3,777 million, accounting for a decreased expenditure of $402 million.
Guaranteed Income Supplement Payments – Decrease of $773.0 million
• a decrease in the estimated number of GIS recipients from 2.67 million to 2.60 million, accounting for a decrease of $522.4 million; and
• a decrease in the estimated average monthly GIS benefit from $628.60 to $620.71, accounting for a decrease of $250.6 million.
Allowance Payments – Decrease of $24.0 million
• a decrease in the estimated number of beneficiaries from 70,871 to 70,000, accounting for a decrease of $7.8 million; and
• a decrease in the estimated average monthly Allowance benefits from $747.84 to $728.57, accounting for a decrease of $16.2 million.
8. Canada Student Financial Assistance Program - Increase of $802.7 million
Canada Student Grants – Increase of $772.3 million
This increase is mostly a result of extending for an additional year, the measure to increase grant amounts by 40% above pre pandemic levels, as announced in the Canada Gazette, Part II.
Direct Financing Arrangements under the CSFAA – Increase of $30.2 million
This increase is primarily driven by higher alternative payments to non-participating jurisdictions, as more grants were disbursed in academic year 2024 to 2025 following the extension to the measure increasing grant amounts by 40% above pre-pandemic levels, as announced in Budget 2024. This cost increase is partially offset by lower than anticipated loan forgiveness expenditures due to a revised implementation timeline for the Budget 2024 initiative expanding eligibility to additional health care and social services professionals in rural and remote communities.
9. Canada Education Savings Program– Increase of $27.0 million
Canada Education Savings Grant – Increase of $30.0 million
The increase is mainly driven by strong financial market performance and an easing of inflation which is freeing some money for families to save in reregistered Education Savings Plans (RESP).
Canada Learning Bond (CLB) – Decrease of $3.0 million
The decrease can be attributed to two factors; a projected decrease in the population of children 0-15 years old and the persistent high cost of living that is likely prompting low-income families to focus on immediate needs rather than planning for their child’s future post-secondary education. As a result, they are less likely to open RESP for their children and request the CLB.
10. Canada Disability Savings Program – Increase of $110.9 million
Increases of $15.3 million in Canada Disability Savings Bond and $95.6 million in Canada Disability Savings Grants are due to a higher than forecasted number of Registered Disability Savings plans (RDSP) being opened in the last 12 months.
Based on the first 6 months, 2025 to 2026 is expected to set a new record for the number of RSDP open in a year if the pace is maintained.
The number of beneficiaries receiving grants and/or bonds has increased by 38% in the last 5 years (from 141,000 on December 31, 2019, to 194,000 on December 31, 2024) as new RDSPs are opened by eligible Canadians.
11. Contributions to employee benefit plans – Increase of $378.2 thousand
Contributions to employee benefit plans include costs to the government for the employer’s matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.
The increase of $378,208 is directly attributable to the Vote 1 – Operating expenditures funding being requested through these Supplementary Estimates (C) for the voted appropriations item Funding for collection activities for Canada Emergency Response Benefits overpayments presented in Section A (Item 3).
D. STATUTORY NON-BUDGETARY AUTHORITIES
12. Adjustment to Loans – Increase of $1,732.4 million
Loans disbursed under the Canada Student Financial Assistance Act (CSFAA) – Increase of $1,728.4 million
• Estimated loan disbursements under the CSFAA have increased by $1.9 billion reflecting higher disbursement trends, driven by greater enrollment of eligible students and the one-year extension of the enhanced Canada Student Loan limit from $210 to $300 per week of study as announced in the Canada Gazette, Part II.
• This increase is slightly offset by a decrease in other adjustments of $126.6 million under the CSFAA mainly due to the write-offs from fiscal year 2024 to 2025 that were reprofiled to the fiscal year 2025 to 2026.
Loans disbursed under the Apprentice Loans Act – Increase of $4.1 million
• Estimated loan disbursements under the ALA has increased by $4.2 million to reflect higher loan disbursement trends driven by a higher demand for apprenticeship programs.
• The increase is slightly offset by a decrease in other adjustments of $0.1 million under the ALA, which reflects the adjustment to projected loans forgiven.

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.
ESDC is requesting a total of $483.9 million in additional authorities through the Supplementary Estimates (C):
An increase of $18.2 million in Vote 1 Operating expenditure
A decrease of $6.3 million in Vote 5 Grants and Contributions
An increase of $184.7 million in Vote 10 and Vote 15 Debt write-off – Canada Student Loans / Canada Apprenticeship Loans (CSL/CAL) and Government Annuity Account (GAA)
A decrease of $1,445.1 million in Statutory items
An increase of $1,732.4 million in non-budgetary Statutory items