Helping hand to elderly receives mixed reviews
COVID-19 aid package for seniors gives too much to people who don’t need it, experts say
OTTAWA — Targeting COVID-19 aid at low-income seniors makes sense, public policy experts say, but the federal government’s $2.5-billion package announced on Tuesday hands out too much money to people who don’t need it.
Some also argue that the political expediency of giving broad-based grants to an important voting bloc is likely the reason why.
Prime Minister Justin Trudeau said the pandemic “has been taking its toll on seniors, both emotionally and financially,” and the money will help alleviate some of that stress. “But there’s a lot more work to be done, not only to find short-term fixes, but long-term solutions,” he said.
Nursing homes in Ontario and Quebec have been particularly hard hit, accounting for 80 per cent of Canada’s COVID-19 death toll of 5,000.
The bulk of the aid package announced Tuesday is a $300 one-time payment to seniors who receive Old Age Security and an extra $200 to those receiving the Guaranteed Income Supplement. It also included $20 million for programs that help reduce isolation and improve qualify of life for seniors.
Old Age payments go to seniors with individual taxable income up to $128,137. The income supplement is for seniors living on individual income of $18,600 or less.
Seniors Minister Deb Schulte said COVID-19 “has made life more expensive and more difficult for seniors because of the risks of more severe outcomes.
“Many are facing higher costs for food and services due to imposed restrictions,” she said at a news conference. “They’re paying more in dispensing fees to get the same medication. They are paying a premium for deliveries. All the while, their life savings have taken a beating.”
Tammy Schirle, a Wilfrid Laurier University professor who specializes in economic policy for the elderly, said about a third of seniors receive GIS support.
“I expect that the lowest income seniors — particularly those who rely almost exclusively on OAS and GIS for income — have struggled with the COVID-19 restrictions,” she said. “I think public health information would support a concern that many lowincome seniors are at greater risk than other demographic groups and perhaps have thus had to incur more costs than others.”
But it’s the blanket distribution to OAS recipients that leaves her scratching her head.
“Some of this group continues to work, and I expect some will receive CERB,” she said, referring to the $2,000 a month emergency grant for those who’ve lost their job. “Moreover, this will include many seniors with savings available to manage any extra costs associated with COVID19.”
Jack Mintz, a president’s fellow with the University of Calgary’s School of Public Policy, was more blunt in his assessment. “This was a waste,” he said, arguing that most seniors are already well protected due to their regular government payments.
“Some may have lost on the financial markets, but $300-$500 is unnecessary and far too small in that case anyway,” he said. “Yes prescription drugs have gone up for the general population, but many seniors are on provincial drug plans and get covered.”