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Prime Minister Justin Trudeau says the federal government is looking at extending the Canada Emergency Response Benefit, and is promising an update by the end of the week.
“For now, all I can say is that we will continue to be there to support Canadians,” Trudeau said.
By the first week of July and through the summer, millions of Canadians will come to the end of their 16-week eligibility period to claim CERB, which has prompted questions about what will happen to those who have been on the program since it first launched and have already accessed the full 8,000 available, but are still out of a job and without income due to COVID-19.
The prime minister announced on Monday that because so many are still struggling, the government is “working on a solution to extend the benefit for people who can’t return to work yet.”
“If you’re having trouble finding a job, you shouldn’t also be worrying about whether you’ll hit the limit of your CERB benefits,” Trudeau said.
The first application period opened in early April, and Canadians are able to claim the benefit for a maximum of 16 weeks between March 15 and October 3, meaning there will still be Canadians receiving funding for weeks to come, but others are soon going to run out. There are also Canadians who could be coming up to the end of their benefit payments earlier if they were rolled onto the program from the Employment Insurance program at the very outset.
Close to 1.2 million Canadians have dropped off the program before maxing out their 16-week eligibility, meaning they have either gone back to work or have been moved onto the wage subsidy program through their employer.
As of June 4, the federal government has spent a total of 43.5 billion sending more than 8.4 million Canadians the 2,000 monthly payments. An extension—as the NDP have called for— would amount to approximately 17 billion each month the program remains in place under the current parameters.
“Whether it’s to cover the bills, to keep people on the payroll, or to make rent on a storefront, many Canadians need a hand right now,” Trudeau said.
The government’s initial intention was to gradually wean people off CERB and onto the federal wage subsidy program, which was rolled out with the promise of seeing millions of out-of-work Canadians be put back on their employer’s payroll, though the number of companies applying to receive the 75 per cent subsidy has been less than anticipated.
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