Extending CERB for months could double $60-billion budget, PBO report suggests

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Extending CERB for months could double $60-billion budget, PBO report suggests
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Yves Giroux said the longer the program is extended, the more pressure will build to make the CERB, or parts of it, permanent

OTTAWA — Parliament’s spending watchdog has put a price tag around talks to extend the Canada Emergency Response Benefit, estimating it could potentially double the current $60-billion budget.

The most recent federal figures show 8.41 million people have applied for the CERB, with $43.51 billion in payments made as of June 4. It is a similar dilemma facing other federal aid programs aimed at supporting people and businesses through the COVID-19 pandemic shutdown, such as the wage subsidy program that is being reviewed for changes to boost take-up so fewer people need the CERB.

The Canadian Federation of Independent Business said Wednesday that many small business owners support cutting off CERB payments to workers who are offered their jobs back, barring health-related issues. Giroux’s report estimates that $3.2 billion in benefits would likely be paid out to people who don’t want to work and stay on an extended CERB. The estimated cost rises to $3.7 billion if people could earn beyond the $1,000-income cutoff.

Although May’s labour force report from Statistics Canada showed a bump in job numbers, the results disproportionately favoured men. For women, parents with children six and up gained back jobs at a faster rate than those with younger children.

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