Close X
Tuesday, November 26, 2024
ADVT 
National

Eight more weeks of CERB to cost $17.9 billion, budget officer says

Darpan News Desk The Canadian Press, 23 Jun, 2020 09:00 PM
  • Eight more weeks of CERB to cost $17.9 billion, budget officer says

The parliamentary budget officer estimates in a new report that it will cost the federal government $17.9 billion to provide eight extra weeks of payments through the Canada Emergency Response Benefit.

The report this morning from budget officer Yves Giroux says that would bring the total cost of the benefit program for people who've lost all or nearly all their work to the COVID-19 pandemic to $71.3 billion.

The CERB, now budgeted at $60 billion, has paid out $43.51 billion to 8.41 million people as of June 4 as demand surges past federal expectations.

With the first cohort of CERB applicants set to hit the 16-week limit on the payments early next month, the Liberals have promised to increase the limit to 24 weeks to provide help through the summer for those who need it.

Giroux's report says the additional cost to the program depends heavily on the outlook for the economy and jobs, as well as the course of the pandemic.

The report says further uncertainty over the final cost of the program rests on the actual takeup of the separate federal wage-subsidy program, which the Liberals plan to retool.

A report this morning from a group of experts convened by the C.D. Howe Institute is urging the Liberals to take the extra time bought by extending the CERB to retool the program itself and put in a program to help recipients retrain for other or better jobs.

Employment Minister Carla Qualtrough and Tiff Macklem, the governor of the Bank of Canada, separately on Monday warned that not everyone will have a job to go back to as restrictions ease and businesses reopen. Some companies may not survive the recession the pandemic has caused, Macklem said.

It's why the C.D. Howe paper also calls for an update to the employment insurance system to handle a possible surge in applicants come September, and for clearer language around a newly imposed requirement on CERB recipients to look or take work when it is "reasonable to do so."

When the Liberals unveiled the wage subsidy and CERB, it was the subsidy program that carried the heftier price tag of over $70 billion. The government styled it the largest social support program in the country's history.

But fewer companies than envisioned have used the subsidy, which now is budgeted to cost $45 billion. As of June 15, the government had approved $13.28 billion in payroll help to 223,918 companies.

Finance Minister Bill Morneau has been working on changes to the program's eligibility rules to improve takeup.

The Liberals' latest estimated cost of the total package of pandemic-related aid was about $153.7 billion, but Giroux's running tally now estimates the cost at $169.2 billion.

Fuelling demand for the CERB has been a steep drop in employment, with three million job losses in March and April as non-essential businesses were ordered closed to slow the spread of the novel coronavirus.

With the possibility of more temporary layoffs becoming permanent, the Liberals on Monday extended the recall period for furloughed workers. In a statement, Labour Minister Filomena Tassi said the decision was due to "a great deal of uncertainty" companies have about when they can bring back employees.

MORE National ARTICLES

Military reports 'shocking' conditions in Ontario nursing homes

Military reports 'shocking' conditions in Ontario nursing homes
A new report from the military helping battle COVID-19 in five long-term care facilities in Ontario has exposed the extent of the ugly conditions facing residents, Premier Doug Ford said on Tuesday, as he raised the prospect of criminal charges.

Military reports 'shocking' conditions in Ontario nursing homes

Canada pledges $27M to Venezuelan refugee crisis amid COVID-19 fight

Canada pledges $27M to Venezuelan refugee crisis amid COVID-19 fight
Canada is increasing its support to South American countries coping with the Venezuelan refugee crisis by $27 million.

Canada pledges $27M to Venezuelan refugee crisis amid COVID-19 fight

Half of Canadians say governments are hiding something about COVID-19: poll

Half of Canadians say governments are hiding something about COVID-19: poll
Half of Canadians believe they're not getting the whole truth from their governments about COVID-19, a new poll suggests, and some also believe conspiracy theories about where the novel coronavirus began.

Half of Canadians say governments are hiding something about COVID-19: poll

Canada takes global role in countering electoral interference in cyberspace

Canada takes global role in countering electoral interference in cyberspace
Canada is taking on a leadership role against electoral interference as part of an international cybersecurity effort.

Canada takes global role in countering electoral interference in cyberspace

Alberta government stands by energy minister's pipeline and COVID comments

Alberta government stands by energy minister's pipeline and COVID comments
The Alberta government isn't backing away from a cabinet minister's comments that public heath rules and economic fears caused by COVID-19 favour pipeline construction.

Alberta government stands by energy minister's pipeline and COVID comments

Justin Trudeau says he'll take COVID-19 antibody test once available

Justin Trudeau says he'll take COVID-19 antibody test once available
Prime Minister Justin Trudeau said Tuesday that once there's a test widely available to see who has had COVID-19, he'll take it. Trudeau was exposed to the novel coronavirus earlier this year via his wife, Sophie Gregoire Trudeau, who likely contracted it during a trip to England. The prime minister never showed any symptoms.

Justin Trudeau says he'll take COVID-19 antibody test once available