Question Period Note: Introduction of a new Canada Recovery Benefit

About

Reference number:
QualJan2021-003
Date received:
Oct 19, 2020
Organization:
Employment and Social Development Canada
Name of Minister:
Qualtrough, Carla (Hon.)
Title of Minister:
Minister of Employment, Workforce Development and Disability Inclusion

Issue/Question:

With the CERB coming to an end, how is the Government helping Canadians who still can’t resume work, and who are not eligible for EI?

Suggested Response:

• In the context of the pandemic, we are making changes to better support workers and encourage people to return to work when it is reasonable to do so.
• First, we have made the EI program more flexible to support more workers affected by COVID-19.
• Second, we have proposed the Canada Recovery Benefit to support workers who are not eligible for EI.
• To be eligible, workers must be unable to work or have a reduction of at least 50% in income due to COVID-19.
• Under this benefit, a worker could receive $500 per week for up to 26 weeks as long as they are available and looking for work.
• This will help support Canadians and promote economic recovery.

Background:

On September 24, legislation was tabled to introduce three temporary recovery benefits to support Canadians who are unable to work due to COVID-19.

Upon this legislation receiving Royal Assent, the new benefits would provide income support to Canadians while promoting economic recovery by introducing measures that encourage people to return to work.

The new Canada Recovery Benefit (CRB) is proposed as part of the legislation to support Canadians who are unable to work due to COVID-19. This Benefit would support Canadians who have not returned due to COVID-19 or whose income has dropped by at least 50%, and who are not eligible for Employment Insurance.

The Canada Recovery Benefit would be available to residents in Canada who:
• Are at least 15 years old and have a valid Social Insurance Number (SIN);
• Have stopped working due to the COVID-19 pandemic and are available and looking for work; or are working and have had a reduction of at least 50 per cent in their employment/self-employment income for reasons related to COVID-19;
• Are not eligible for Employment Insurance;
• Had employment and/or self-employment income of at least $5,000 in 2019 or in 2020, or in the 12-month period prior to their first application for the Canada Recovery Benefit;
• Have not quit their job voluntarily; and
• Have not rejected a reasonable job offer, rejected a request to resume work or failed to resume work if self-employed where reasonable to do so.

Workers must apply after every 2-week period for which they are seeking income support and attest that they continue to meet the requirements.

Applicants would be required to seek and accept work, when it is reasonable for them to do so.

Applicants who receive the Canada Recovery Benefit and have an annual net income greater than $38,000 would be required to repay some or all of the benefit through the tax filing process.

The new CRB is to be delivered by the Canada Revenue Agency (CRA), and the administration of the new benefits would incorporate more robust verification and program integrity measures than the Canada Emergency Recovery Benefit (CERB).

Additional Information:

None