Government’s Response to the COVID-19 Pandemic through CESB - April 29, 2020

First steps – the CERB

For over six weeks now, Canadians have been adapting to the COVID-19 pandemic gripping our country and the world.

And to support Canadians during this crisis, the Government implemented its COVID-19 Economic Response Plan. The Plan commits over 100 billion dollars – or over four percent of our national GDP – in relief measures.

Mr. Speaker, a key element of the plan is the Canada Emergency Response Benefit. It was created to support Canadians under these unprecedented circumstances.

For eligible workers, the benefit provides temporary income support of $500 a week for up to 16 weeks. At first, it applied to workers who had lost all of their income for reasons related to COVID-19.

However, after we launched the benefit, we quickly recognized that there were some gaps. We listened to concerns and expanded the eligibility criteria to make the benefit more inclusive.

Now, workers – including the self-employed – can earn up to $1,000 per month while collecting the benefit. The benefit also applies to workers who’ve recently exhausted their EI regular or fishing benefit payments and are unable to start working again because of COVID-19.

To give you a sense of the scope of this effort, Mr. Speaker, public servants have processed 8.9 million applications to date under EI and the Canada Emergency Response Benefit. This figure is simply incredible and is a reflection of the dedication of our public service.

To help families with the cost of caring for their children during this challenging time, the Government of Canada is providing a one-time enhancement to the Canada Child Benefit (CCB). This means that families that are currently eligible for the CCB will receive an extra $300 per child as part of their May 2020 payment. 

Rationale for the CESB

But we know that gaps in support remain.

It is estimated, for example, that over 1 million post-secondary students may not be eligible for the Canada Emergency Response Benefit.

And students face serious challenges during this pandemic. Challenges like expecting a summer job or internship and now suddenly facing a summer of unemployment because that job has now vanished.

Mr. Speaker, I want to be clear. Students are and will be an essential part of our society and workforce.

They provide valuable community services to our most vulnerable. And they are ready with innovative solutions and thinking outside of the box to help our society face its most pressing COVID-19-related problems.

Last week, the Prime Minister mentioned Felix, a recent engineering grad from Carleton University. Felix has experience working on communications satellites, and a few weeks ago, he talked to a local manufacturer about what they could do in the fight against COVID-19.

Now they've started designing and creating reusable face shields for frontline workers. And Felix isn't the only one stepping up. Young people from all over Canada are pitching in and doing their part.

And this proposed legislation before us now, Mr. Speaker, is how we’re supporting them in return.

If approved, this framework would provide immediate financial relief to students during the COVID-19 pandemic through a series of measures representing an investment of approximately $9 billion.

I will focus on the largest piece of the framework, which is the Canada Emergency Student Benefit worth approximately $5.2 billion.

Highlights of the CESB

Last week, the Prime Minister announced a four-month Canada Emergency Student Benefit. Students who are not eligible for the regular CERB will be able to apply to receive $1,250 per month between May and August.

Students could also be working part-time and still receive the benefit, which is good in that it would help keep students connected to the labour force, if possible.

Students with permanent disabilities, and those with dependents would receive an additional $500 per month.

The benefit is not a loan. Students would not have to repay it.

Let me provide some details on who would be eligible to receive it.

The CESB would be available to students who are enrolled in a post-secondary education program or to those students who just recently ended their post-secondary studies. It would also be available to high school graduates who will be joining post-secondary programs in the coming months.

The CESB would also be available for current CEGEP students, as well as those who have recently completed CEGEP and intend to return to school in the fall.

Students can begin applying for the CESB in May via a simple online form on their MyCRA account.

Students with disabilities

Finally, Mr. Speaker, I would like to highlight what the Government of Canada is doing to address the concerns of students with disabilities during this pandemic.

First, as I mentioned previously, students with disabilities, as well as those with dependants would be eligible to receive an extra $500 per month on top of the basic CESB benefit, as we know that they have additional expenses during this crisis.

Students with disabilities have other concerns right now as well.

Catching COVID-19 could mean serious complications if they also have underlying health issues. And they face discrimination and barriers when they try to get information, service or care.

One of the questions I ask my cabinet colleagues is how can we help students with disabilities stay safe and healthy with dignity?

Part of how we’re doing this is through communication between the Government and the disability community through both informal and formal channels.

One of the formal channels is the COVID-19 Disability Advisory Group that was announced on April 10th.

The group is mandated to provide advice to the Government on the real-time experiences of persons with disabilities – including youth – during this crisis. It is helping Canadian policy makers put a disability lens on decisions, including this legislation before us.

Conclusion

I want to be clear. It is key that this legislation detailing the support framework for students be put before Parliament. In fact, it is essential to any functioning democracy that our spending policies are scrutinized by Parliament.

The Government of Canada is grateful for reflections, input and amendments put forward by our honourable colleagues in this place.

But, Mr. Speaker, I would urge everyone to please work with us quickly to make this a reality for students. May is fast approaching, and a jobless summer for many students is a true threat to financial security for so many of them.

This legislation is but one step in a broader strategy to ensure that young people are not forgotten now and when we begin to reopen the economy after this crisis has passed.

Thank you, Mr. Speaker.

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Issue

The Government of Canada is tabling legislation to introduce the Canada Emergency Student Benefit (CESB) Act. This Act will provide authority to the Minister of Employment and Social Development (ESD) to provide financial relief to eligible students. Eligible students would include post-secondary students, and recent post-secondary and high school graduates if, for reasons related to COVID-19, they are unable to find work, are seeking work and unable to find it, or are working but are paid less than the amount determined under the regulations, and who do not qualify for the Canada Emergency Response Benefit.

Talking points

The Government of Canada is committed to providing financial relief to post-secondary students during the COVID-19 pandemic.

The CESB Act will enable the us to provide financial support to post-secondary students and recent post-secondary and high school graduates who depend on summer employment to help pay for their tuition and living costs.

Students will be eligible for CESB if they do not qualify for CERB, and if for reasons related to the COVID-19, are unable to work, are seeking work but unable to find work, or are working but are paid less than the amount determined under the regulations.

More details on the measure will be released in the coming days in regulations, as provided for by the Act.

Over 1 million students and recent graduates are expected to receive over $5 billion in financial support under this Act.