Thursday, April 18, 2024

Federal government to replace CERB with new benefit, make changes to EI

First Published:

The federal Liberals are rolling out a $37 billion income support plan for Canadians whose earnings crashed during the COVID-19 pandemic.

The Canadian Emergency Response Benefit will be extended for another four weeks.

After that, CERB will be replaced by a new benefit that pays $400 a week for up to 26 weeks for those ineligible for employment insurance.

Anyone eligible for EI will get the same minimum for at least 26 weeks and will need to have worked 120 hours to qualify, well below current EI requirements.

Government officials estimate about one million people will need the new workers’ benefit that replaces the CERB.

Three million will go onto the simplified EI program.

They estimate 400,000 people will receive benefits who otherwise wouldn’t have qualified for EI.

There will be another $500-a-week sickness and caregiving benefit for anyone that needs to stay home because they’re sick or because school or daycare closed.

Changes are also coming to allow workers to keep more of their benefits even when working.

The three new benefits are expected to cost $22 billion and will be brought in through legislation once the House of Commons returns after being prorogued this week.

CERB has paid more than $69 billion in benefits to 8.61 million Canadians since mid-March.

Since then, 4.1 million have returned to work.

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