Aid running smoothly for out-of-work Canadians

Government received 966,000 new CERB applications on Monday with more expected

Out-of-work Canadians and government officials say the new emergency response benefit for workers who have lost income due to COVID-19 is running smoothly, unlike the massive backlog of employment insurance claims received in March.

According to Employment and Social Development Canada, the government received 966,000 applications on Monday for the Canada Emergency Response Benefit.

These, plus the employment insurance claims that are automatically being transferred to CERB for those who became eligible for EI on March 15 or later, equal 3.67 million claims, a spokesperson said.

Three million of those claims have already been processed.

For Toronto musician Alex McMaster, the application was “so easy.” She was nervous it would be difficult after hearing about the backlog of EI claims, but said it took about two minutes.

“I logged in and clicked a couple of boxes and there you have it.” Hundreds of thousands more are expected to apply for the benefit on Wednesday and Thursday; to streamline the demand and avoid a backlog, the government is asking people to apply based on their month of

Conservative finance critic Pierre Poilievre said there are “serious design and delivery flaws” in the CERB program that leave some people out completely

birth — for example, on Monday, only those born in January, February or March were encouraged to apply.

CERB pays $2,000 every four weeks for up to 16 weeks, and is open to Canadians who aren’t eligible for employment insurance, such as contract workers and the self-employed.

To qualify, you must not have received any income for at least 14 consecutive days in the initial four-week period beginning March 15, and earned at least $5,000 in income in the last 12 months or in 2019.

Those who are eligible for EI but have not yet applied are being asked to apply for CERB through the Canada Revenue Agency, not the agency that distributes EI.

It will take three to five days once an application is completed to get the money for those who have direct deposit, or 10 days to get a cheque in the mail, according to the government.

Finance Minister Bill Morneau anticipates the wage benefit will cost the government $24 billion.

However, Conservative finance critic Pierre Poilievre said there are “serious design and delivery flaws” in the CERB program that leave some people out completely.

For example, he said smallbusiness owners who pay themselves with dividends don’t qualify because they won’t have $5,000 of employment income in 2019.

Also, any contract or freelance worker who has lost most but not all of their income as of March 15 — even a modest amount — would not be eligible.

Poilievre called for patches to these holes, such as an adjustment to the benefit for those earning even a limited income. NDP MPs Peter Julian and Gord Johns wrote to Morneau on Sunday urging similar changes, saying these holes may provide an incentive not to work at all.

On Monday, Prime Minister Justin Trudeau suggested the program would be expanded to offer help for people whose incomes have been reduced but not eliminated.

McMaster said while she’s grateful the government has rolled out the emergency benefit, she does wish there was more flexibility for people like her.

For example, she can’t offer online music lessons because any income would make her ineligible for CERB.

“I think it’s something that could be looked at,” she said, even if that income was deducted from CERB. Gatineau resident Mike Rogoff, whose contract work with the government has temporarily ended, has been trying to get clarity on the EI application he submitted March 16, but hasn’t been able to get anyone on the phone, despite being told he needed to contact them to finalize it.

So he decided to give CERB a shot, and was told he would receive a payment soon.

“It honestly seemed almost too easy,” Rogoff said via email. While he’s grateful he will finally get some income support, he said the messaging around CERB and EI is “very muddled,” and his experience highlights this confusion.