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Decentralized Democracy

House Hansard - 216

44th Parl. 1st Sess.
June 19, 2023 11:00AM
  • Jun/19/23 8:45:17 p.m.
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Mr. Speaker, in the pandemic there were folks who were in quite desperate financial situations. One group was foster kids graduating out of care in the spring of 2020. There were no jobs available. They were told by the provincial government that they could not access social assistance unless they applied for CERB. The provincial government knew very well that it was a no-fail application. That is how those kids, at the time, got money to support themselves, as they were striking out on their own at the age of 18. Now, the government is calling in all of those debts, and many of those Canadians are still in a desperate financial situation. The government said it was going to take a compassionate approach, but recent media coverage has said it just cancelled the $5- and $10-a-month payments, so people cannot access that anymore. The government is clawing back benefits. If the government is really committed to a compassionate approach, at the very least it should know how many CERB debtors fall below the low income cut-off. Has it done the analysis, and if so, what is the number?
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  • Jun/19/23 8:46:20 p.m.
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Mr. Speaker, I thank the member for Elmwood—Transcona for his question and his ongoing advocacy on behalf of his constituents. When the COVID-19 pandemic hit, we quickly introduced the Canada emergency response benefit, or CERB, and ended up helping more than eight million Canadians. When it came to delivering the benefit, we knew that speed was of the essence. We knew that we needed to get money into the hands of Canadians quickly so that they could feed their families and pay their bills. We were clear from the onset that eligibility would be verified at the back end, once tax data became available. This approach kept workers attached to their jobs and positioned our economy to come roaring back. Since day one, we have treated all cases individually and fairly to ensure that Canadians were not placed in financial hardship. We have also been committed to responsible financial stewardship. That is why we developed a comprehensive four-year plan to support post-payment verification activities on the CERB. By late 2021, we estimated that about 1.8 million people had an outstanding amount, owing between $500 and $2,000 as a result of CERB advanced payments. That is when we began to notify people who had an obligation to repay. When we started the post-payment verification process in January of last year, we asked people who had received the benefit to assess their own eligibility and voluntarily repay what they owed, and many people did just that. To date, ESDC has sent out 1.8 million overpayment notices of CERB advance payment reconciliation for an amount of $3.1 billion as of June 16, 2023, and $2.17 billion has already been repaid. While we recover overpayments, we are doing everything we can to avoid causing undue hardship to Canadians. We are continuing to take an empathetic, people-first approach. When a person facing repayment tells the CRA that they are struggling financially, the agency will assess the person's ability to pay, based on their entire situation, and that includes family size, current income and assets. In addition, we are not imposing penalties or interest on overpayments. We treated Canadians with compassion and understanding when we created these benefits and we are continuing to do that now. Once again, I thank the member for Elmwood—Transcona for his ongoing advocacy on behalf of his constituents.
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