Question Period Note: Repayment of Emergency Benefits

As post-payment verification is getting underway, some Canadians are beginning to be notified of their emergency benefit overpayments.

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

• While I cannot comment on individual cases, the Government understands there may be situations in which workers received a CERB payment to which they were not eligible.

• In order to prevent causing undue hardship on benefit recipients, flexible payment arrangements based on the individual’s ability to pay can be arranged. Clients can contact the CRA to discuss.

As post-payment verification is getting underway, some Canadians are beginning to be notified of their emergency benefit overpayments.

CERB

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. This attestation-based approach was designed to verify eligibility for emergency benefits through robust post-payment compliance and integrity measures. Although it was understood that this risk created the potential for mis-payments (in error or deliberately through fraud), this approach was taken to ensure that income support went to vulnerable Canadians and residents as quickly as possible.

Now that post-payment verification is taking place, some Canadians are beginning to be notified of their emergency benefit overpayments.

While there will not be any penalty or interest for workers if they received a payment in error, they may be required to repay the benefits for which they were determined to be ineligible. Under the Financial Administration Act, the CRA and ESDC have an obligation to collect amounts owed to the Government, including debts resulting from COVID-19 income support payments.

Once debts are established, clients can contact the CRA to establish payment schedules, considering their ability to pay. This approach will take into account the financial circumstances of the person, including deferral of debt for those who cannot repay at that time. Canadians will also have access to formal hardship assessments where repayment is not financially possible.

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