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In the Parliament The "Pandemic Aid Bill"The government put a bill before the House of Commons on September 28 -- Bill C-4, An Act relating to certain measures in response to COVID-19 -- which includes three new benefits to replace the Canada Emergency Response Benefit (CERB). News reports indicate that "millions of CERB recipients will transition automatically to Employment Insurance (EI). Expanded eligibility rules will mean more people can qualify." In a deal brokered with the NDP to secure its support in a confidence motion on the Throne Speech, EI will provide a taxable benefit of at least $500 a week, or $300 a week for extended parental benefits. Those eligible for EI will be entitled to a minimum of 26 weeks of regular benefits. The new language the NDP negotiated is said to expand eligibility to include people who "have underlying conditions, are undergoing treatments or have contracted other sicknesses that, in the opinion of a medical practitioner, nurse practitioner, person in authority, government or public health authority, would make them more susceptible to COVID-19."
The rules allow claimants to keep all their work earnings while still receiving part of their EI benefits. Recipients forego 50 cents of the benefit for every dollar earned above $38,000. Recipients must make "reasonable and ongoing job search efforts" while receiving EI. Those efforts can include reaching out to employers, preparing a resume or cover letter, registering for and searching job banks and submitting job applications. The government created three new benefits for Canadians who don't qualify for EI, providing a payment of $500 a week: -
the Canada Recovery Benefit (CRB) is for the self-employed or gig
workers who don't qualify for EI; The package is projected to cost $34 billion. CERB paid out about $80 billion in benefits to nearly nine million people. The bill also includes another $17 billion for other measures. On September 28, the Liberals proposed a motion, supported by the NDP and Green Party, that allowed the government to pass the bill through all stages of the House of Commons in a single day. After being introduced in the House on September 29, it was passed unanimously at about 3:00 am on September 30. The bill received Senate approval and Royal Assent on October 2. On September 29, the Parliamentary Budget Officer (PBO) released a report updating its projections for the federal deficit based on spending announcements made up to September 1. These projections do not include any of the new spending commitments made in the Throne Speech. According to the PBO, already under policies in place prior to September 1 the federal deficit is projected to be $328.5 billion in 2020-21, including an estimated $226 billion in COVID-19 response measures. The office of the PBO reports that relative to the size of the economy, the deficit amounts to 15 per cent of GDP -- the largest budgetary deficit since 1966-67. (CBC News, CP, PBO, ESDC)
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While many CERB
recipients will be transferred automatically onto EI, those who are
self-employed or have a 900-series social insurance number (which have
expiry dates) have to reapply. We are informed that Canada Revenue
Agency officials have started to get in contact with roughly 400,000
people in the category of people with 900-series social insurance
numbers. The category applies to those who are not Canadian citizens or
permanent residents, including temporary foreign workers and
international students as well as refugee claimants and certain others.
Canadians who received CERB through the Canada Revenue Agency but have
120 insurable hours and meet other eligibility criteria may also
qualify for EI. According to a government press release, they can
expect their first payment as of October 14.