Relief, help available to those asked to repay COVID-19 income benefits
Relief, help available to those asked to repay COVID-19 income benefits
By Veronica Silva Cusi
The Philippine Reporter
Kababayans who fear penalties for mistakenly availing of COVID-19 economic benefits in good faith may heave a sigh of relief. Not only has the federal government recently halted repayment of income relief benefits. There are also groups in civil society who are fighting for their rights and the rights of other marginalized, racialized and low-income Canadians.
It might have been a very stressful Christmas for some Canadians when they received letters from the government last December advising them to repay either their Canada Emergency Response Benefit (CERB) or Employment Insurance (EI) as a result of job losses or reduction in work hours due to COVID-19.
The Canada Revenue Agency (CRA) reportedly sent out thousands of so-called “educational” letters with a deadline for repayment set for December 31, 2020. Shortly before Christmas, however, Prime Minister Justin Trudeau assured these Canadians not to let these letters dampen the Christmas spirits.
Some civil society groups have been calling for an amnesty on repayment and to go easy on those who may have applied for some benefits without understanding the rules.
Early in February, the CRA announced that some self-employed Canadians do not have to repay the CERB benefits they claimed and that those who have repaid these benefits will be refunded. There is also interest relief up to April 2022 for those who have to repay the benefits, and this applies to individuals who have a “total taxable income of $75,000 or less in 2020.”
A bone of contention was the eligibility criteria, particularly on the minimum annual income of $5,000. While the CRA maintains that the threshold was $5,000 net income, some who availed are claiming they were misled into believing that the threshold was based on gross income.
Regini David, outreach and law reform coordinator of the West Scarborough Community Legal Services, told The Philippine Reporter that her organization is reaching out to racialized and marginalized communities to educate them on different options if they received the CRA letters. This campaign is prompted by feedback from the ground.
“What we’re hearing from the community (is) they are afraid. People are losing jobs and relying on these benefits,” said David. “These benefits have created so many changes, and it’s tough for community members — especially those who have language barriers — to follow and understand. What we’ve been hearing is people have been applying to the benefits without understanding,” said David.
David noted that the communities they serve are some of the most vulnerable. “Unemployment really hit the most vulnerable – women, the marginalized,” she added.
Government data indicate that the most vulnerable, including visible minorities or those in the racialized groups, have been most disproportionately affected by the pandemic.
A Statistics Canada survey of self-reported impact of COVID-19 shows that 42% of Filipinos and 47% of West Asians have reported having lost their jobs or reduced work hours compared to 34% of Whites. Over 40% of Arabs, West Asians, and Filipinos also said they are not able to meet their financial obligations or essential needs compared to 23% among Whites.
Unemployment in January 2021, which fell to its lowest since August 2020, hit low income and racialized groups more.
To address community concerns, WSCLS has released education materials, such as posters, and is reaching out to ethnic media, and community and church groups to send messages out to those affected.
Aside from educating Canadians on eligibility requirements, David’s organization is advising those affected of repayment options and how to repay the benefits if they can afford to repay.
Amnesty Campaign
However, some civil society groups have been calling for an amnesty from repayment as the pandemic continues unabated, almost a year after the World Health Organization declared COVID-19 a pandemic on March 11, 2020.
As early as July, Campaign 2000, a Canada-wide network of organizations fighting to alleviate poverty, has been calling for amnesty from CERB/EI repayments for low-income Canadians. In a submission to the Standing Committee on Industry, Science and Technology, the network suggested amnesty for families within the annual income of $30,000 to $50,000, depending on the number of people in a household.
The network also suggested “fair” reduced repayment options. When the letters were sent out in December, it reiterated this call “for anyone living in low income who received the benefit but who were found to be ineligible after the fact,” said Leila Sarangi, national coordinator for Campaign 2000, in a statement.
David and Sarangi, in separate interviews with The Philippine Reporter, said repayment may not be a simple solution for the low-income.
“The intention of the CERB was for people to safely isolate at home, pay rent, buy groceries, buy protective equipment, sanitize. The CERB money for low-income families were used for what they were intended for. Those families don’t have money to pay back,” said Sarangi.
David said “it is good they have one year to pay … but some people may not be able to pay even if they are given one year.” But she added that even with $10 or $20 monthly repayment, as suggested by some people, the low-income cannot afford to repay.
Sarangi added that the repayment forgiveness should include all the working poor, even those who may not be included in the tax system.
She also noted that that the COVID-19 economic response program was done quickly and was easily accessible, leading to confusion.
Sarangi and David said that instead of the government spending funds for postage to send out letters and for legal recourse, the money could have been spent on programs to help alleviate poverty.
For example, in its 2021 pre-budget consultation submission, Campaign 2000 asked the federal government to top up to Canada child benefits, find ways to ensure that more Canadians are included in the tax system, and to strengthen Canada’s Poverty Reduction Strategy with investments. These are but a few recommendations aside from repayment amnesty.
Meanwhile, the Ontario Community Legal Clinic EI Working Group, of which David is co-chair, submitted 2021 pre-budget recommendations, including enhanced COVID-19 income supports to include migrant workers and extend debt forgiveness for low-income, fair and transparent appeals process for Federal COVID- related benefits, and make EI “permanently decent and accessible.”
On February 19, Trudeau announced the extension of COVID-19 economic relief benefits by up to 12 more weeks, in the case of the Canada Recovery Benefits (CRB), which replaced the CERB. Extensions were also announced for Canada Recovery Caregiving Benefit (CRCB), Canada Recovery Sickness Benefit (CRSB) and EI.
However, the adding more weeks of relief benefits may still be not enough.
“While an extension of an additional 12 weeks to the CRB is good and provides a bit of comfort to workers who have lost income due to COVID, it is not enough. The economic, health and social fallouts from the pandemic will not be resolved in 12 weeks,” said Sarangi.
David said: “It is good to see that the benefit has been extended … but we need to monitor to see how government can continue to support our community during this time.”
Sarangi and David added that the economy may not fully reopen yet, indicating that income and jobs losses may not yet be recouped soon.
Sarangi noted that the economic shutdown hit racialized low-income women “particularly hard,” and these women may not be able to return to work soon without accessible services such as universal public accessible childcare in place.
“It’s not only the individuals and families that these benefits are supporting. The benefits are also supporting to keep the economy going during COVID-19 and stabilize consumer spending in our community. Therefore, these benefits are important,” David added.
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