When Will CERB Finally End? New End Date and Programs

A picture to denote someone getting ready to crunch their finances based on the question will cerb finally end and the programs to come afterwards.

When will CERB finally end? That has been the million dollar question for the summer of 2020. However, now it seems the government has given a definite answer after extending the program one more time and has laid out plans for other programs to start right afterwards. Let’s look at these details.

When Will CERB Finally End? – CERB Extension and End Date

CERB or the Canada Emergency Response Benefit has been extended 4 more weeks for a total of 28 weeks. The rate is still $500.00 per week. However, the end date of CERB has changed. It is now ending as of September 26, 2020. So the window to collect a potential of 28 weeks goes from March 15, 2020 to September 26, 2020. What happens next?

When Will CERB Finally End? – New Programs Announced

The government announced that as of September 27, 2020, there will be four new programs that Canadians can apply for to help them through the financial crisis caused by COVID-19. They are a new EI program, and three new temporary benefits programs. Let’s take a look at each one these.

Restructured Employment Insurance Program

The government announced that people who are currently are on CERB and who qualify for EI benefits will be transitioned into the Employment Insurance program. This means that if you applied for CERB through Service Canada, you will automatically be set up for EI benefits. If you applied for CERB through CRA, then you would have to apply for EI. So what are the details of the EI program?

Here are some of the details from the government of Canada’s website below:

“EI will now be available to more Canadians, including those who would not have qualified for EI in the past, adding more than 400,000 people into the program.Those receiving EI will be eligible for a taxable benefit rate of at least $400 per week, or $240 per week for extended parental benefits, and regular benefits will be accessible for a minimum duration of 26 weeks. “

How Many Insurable Hours Do I Need to Qualify for EI Benefits?

The Government has lowered the required insurable hours of work to qualify for EI benefits to 120 hours in the last 52 weeks or since your last Employment claim. How can they do this?

First as indicated from their website, they are going to give a person a credit of 300 insurable hours if they are applying for Regular Employment insurance benefits. If someone is applying for special benefits such as sickness or maternity benefits they will receive a credit of 480 insurable hours. So the government is giving a credit to help make up the difference so you can qualify for EI.

Second, the government has established a minimum unemployment rate for the EI program of 13.1% across Canada. What does this mean? It basically means that a person cannot collect anything less then 26 weeks of benefits. Normally, the unemployment rate used was based in the city or area you lived and the lower the rate of unemployment, the lower the minimum weeks that someone could collect.

If I Do Not Qualify for EI Benefits, Are There Other Options?

As previously indicated, if someone does not qualify for Employment Insurance benefits, the government announced three addition programs. Here they are one by one below.

Canada Recovery Benefit – This program is for self employed workers who do not qualify for employment insurance benefits and need income support and who are looking and are available for work. They can be provided with $400.00 per week up to 26 weeks.

Canada Recovery Sickness Benefit – The government will provide up to $500.00 per week for up to two weeks for someone who has to self isolate for reasons related to COVID-19.

Canada Recovery Caregiving Benefit – This program will provide up to $500.00 per week for up to 26 weeks per household to eligible persons who have to take care of a child, family member with a disability or a dependent who cannot attend school or be at a care facility or get other care due to COVID-19.

All of these new programs start as of September 27, 2020 and all are temporary with a duration of one year. For more details on the specific eligibility requirements, please look at the government of Canada’s website.

Conclusion

CERB will finally end on September 27, 2020. At this point the government has revamped the Employment Insurance program and set up three temporary programs to help Canadians transition out of the financial crisis caused by the pandemic. The goal is to get as many Canadians back to work as possible in this time as the financial costs of having so many Canadians on CERB was immense. Will it work? Only time will tell. However, no matter how good the plans may be, everything will be dependent on how COVID-19 affects life and the economy in the fall and winter. And that is the ultimate wild card. Please stay safe.

CERB Ending Announced -Merging into EI Program

a picture of woman looking at her finances denoting how will CERB ending announced will affect her moving forward.

CERB ending was announced a few days ago by the Canadian government and that the program will be replaced by a new EI program. There were not many details given on how this transition will unfold. However, they indicated that more details will be provided by the end of August. So what do we know about this change from the announcement?

CERB Ending Announced, When Does CERB end?

From the government’s website, a person can collect a maximum of 24 weeks of CERB within the time frame of March 15, 2020 to October 3, 2020. However, the new EI system will be ready in September according to the Employment Minister below:

“Speaking at a news conference later on Friday, Employment Minister Carla Qualtrough said the EI system is equipped to take in around four million applications at the beginning of September.”

Also, a quote from a recent CBC article indicates that those on CERB who already qualify for Employment Insurance will be moved to that program. So it seems at some point, perhaps in September, ones on CERB that quality will be shifted onto EI benefits.

What About People on CERB Who Do Not Qualify for EI?

It seems that the government will make a transitional benefit benefit for those who do not qualify for Employment Insurance. Here’s a quote from the Employment Minister about this:

“The government is promising a parallel, transitional benefit with EI-like components for those who can’t yet — and I emphasize yet,” said Employment Minister Carla Qualtrough — “get into the EI system. “

This provision seems to be temporary with the incentive to get people to qualify for Employment Insurance or back to work. However, we will have to wait for more details.

Will The Amount Payout Change with EI?

This appears to be the case as rates will be based on the Employment Insurance rate of 55% of a person’s normal weekly earnings up to a maximum of $573.00 per week. Here’s a quote from a recent article about this below:

“Benefit amounts may shrink for lower income recipients: Currently, EI regular and sickness benefits are equal to 55 per cent of one’s income to a maximum of $573 a week.”

As a result, the amount of money a lot of people receive will drop with the transition to EI. Many would have been receiving more with the $2000 per month CERB payment. Also, unlike CERB, ones on EI will have to be actively looking for work. However, it looks like the eligibility requirements will be lessened and training offered as indicated below:

“It will include access to training and the ability to work more hours without having as steep a clawback in benefit payments. 

The government is also promising to relax EI eligibility rules like the number of hours required to receive support payments. “

Conclusion, Why Announce CERB Ending Without Details?

It is a good question as the details are very thin. However, the point is that the government is giving sort of a “shot across the bow” to Canadians in that they want more Canadians back to work. This is because the government feels Canada is now in recovery mode from the virus. Here’s an excerpt from recent CBC article below:

“We believe that the CERB has served its purpose and the reason it was created is no longer the main focus of our efforts as a government to support workers,” Qualtrough said during a mid-afternoon press conference. “We are going to move on to something different.” 

And another quote from same article, “The Liberals are hoping the change prods more Canadians to either go back to work or look for a job as the economy moves into what the Bank of Canada has described as a recuperation period before a long, bumpy recovery.”

So are we in recovery from coronavirus? No one knows, as the virus is unpredictable and there is also fear of a second wave in the fall. However, the government is hoping that we are. Only time will tell.

CERB Extension Details, How long? When Does it End?

A sign saying emergency to denote CERB extension details

The CERB (Canada Emergency Response Benefit) extension has been announced by the Canadian Government after much speculation. Many were wondering when and if this would happen due to the fact that a number Canadians who are on CERB would see their benefits end as early as the first week of July. And many people still don’t have jobs to go back to and the economic situation overall still feels pretty shaky. Here are the CERB extension details that were announced below:

CERB Extension Details

The CERB program has been extended an extra 8 weeks. So the maximum number of weeks a person can collect is now 24 weeks from 16 weeks. The amount remains the same, which means you would still collect $2000.00 for each 4 week period.

The criteria for collecting the additional 8 weeks are listed below from the government’s website:

CERB extended from 16 weeks to 24 weeks for workers who:

  • stopped working due to COVID-19 or
  • are eligible for Employment Insurance regular or sickness benefits or
  • have exhausted their Employment Insurance regular benefits or Employment Insurance fishing benefits between December 29, 2019 and October 3, 2020.

Only apply for the CERB through either Service Canada or the Canada Revenue Agency (CRA) – not both.

CERB Extension Details – End Date of Program

Even though the number of weeks has been been extended, the program still ends on October 3, 2020. This means you would have to collect all 24 weeks before this date to get the maximum CERB benefit amount.

Conclusion

The announcement of the CERB extension is a relief for many Canadians as even though parts of the country are starting to open up, many Canadians are still in a perilous financial situation. Regarding what will happen afterwards, no one knows as the situation is fluid and still unpredictable. The reality is that a lot depends upon how Covid-19 spreads in the next while or if there is a second wave of the pandemic. Also, a lot depends upon how quickly the economy can recover. One thing is for sure: we are living in truly unique times.

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When Will CERB End? Canada Emergency Response Benefit program details

Sign saying the end to emphasis question of when will cerb end

When will CERB end? For the over 8 million Canadians who applied for the program, this is a question of upmost importance. The Canadian economy has been hit hard by the pandemic and millions of Canadians were left without work. However in recent weeks, different areas of the country are starting to open up. And people are starting to return to work. In spite of that though, there are millions who still cannot go back to work, because they don’t have a job to go back to, and they are wondering how long their benefits will last.

When Will CERB End? The Program Structure

According to the Government of Canada’s website, the Canada Emergency Response Benefit (CERB) Program goes from March 15, 2020 to October 3, 2020. This DOES NOT mean you can collect CERB benefits for this whole time period. Instead, it means you can collect CERB benefits within this time period.

You are eligible to collect $500.00 per week for a maximum of 16 weeks within the above time period. For example if you start collecting CERB on March 15, 2020 and you went 16 consecutive weeks then your payments would end July 4, 2020. Also, these 16 weeks do not have to be consecutive as long as they all fall into the above time period for the program.

When Will CERB End? Do I Only Need to Apply Once?

The answer is yes you only need to apply once, but you have to declare your eligibility to receive payments more than once. From the Government of Canada’s website, when you are applying for CERB, you are declaring eligibility for a four week period. For example, if you applied for CERB to start on March 15, 2020, you would collect CERB payments for a 4 week period from March 15, 2020 to April 11, 2020.

If you want to keep collecting CERB beyond this date than you would have to declare your eligibility for the next 4 week period. For example, if you applied for the CERB program through CRA than you can do this either online or by phone (1-833-966-2099). If you applied for the CERB program through Service Canada, you do this by completing your EI Report Card to confirm your eligibility to receive CERB for next period.

Will There Be an Extension of the CERB program?

Ah the billion dollar question, literally. There is increased talk about extending the CERB program as many Canadians will see their CERB payments end in early July, and many within this group will still not have work. Regarding the possible costs of extending the CERB program, the recent PMO report was highlighted below:

Budget officer Yves Giroux’s report says simply extending the maximum number of weeks to 28, and extending the program through to January 2021, would cost about $57.9 billion.

You add that figure to the $43.51 billion dollars already paid out in CERB and you are looking at a figure of at least $100 billion dollars that would need to be spent. That is an enormous financial commitment from the government which would then open up a myriad of questions such as who pays for this and so on. As a result, the debate goes on.

Conclusion

When will CERB end? The current answer depends upon your circumstances. However, simply put, it ends either by you collecting the maximum 16 weeks or when you return to work. Whichever comes first. Also, the program currently ends October 3, 2020 so even if you haven’t collected your full 16 weeks by this dates, your CERB ends also.

However, as we can see from the above, this could all change and the program could be extended. But for the time being, this is the program’s parameters currently. And that is important to know, as all of us have to make big decisions regarding our life during this pandemic and subsequent economic crisis. Plan well and stay safe.

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Canada Emergency Student Benefit, What is it?

A picture of a student at university to denote that students will need the Canada Emergency Student Benefit program.

Wondering what the Canada Emergency Student Benefit is? It is an important question to answer if you are a student. As a student, you’re likely wondering how you can earn money this summer during this pandemic. On April 22, 2020, the government outlined a program to help these students in this situation.

What is the Canada Emergency Student Benefit Program?

It is a relief program proposed by the government of Canada to help post-secondary students who aren’t able to find full-time employment or cannot work due to COVID-19. Also, if they are not eligible to receive either Employment Insurance benefits (EI) or the Canada Emergency Response benefits (CERB). Many post-secondary students are not eligible for either of these programs as they have not worked enough to qualify.

How Much Do You Get and For How Long?

Students who qualify would receive $1250 per month for up to 4 months (May 2020 to August 2020). If the student has a disability or has dependents, they can receive an additional $750 per month.

Canada Emergency Student Benefit Program, Who is Eligible?

Here are the details from the Government of Canada’s website below:

  • Students who are enrolled in a post-secondary education program leading to a degree, diploma, or certificate.
  • Students who ended their studies or graduated no earlier than December 2019.
  • High-school graduates who have applied for and will be joining post-secondary programs in the coming months.
  • Canadian students studying abroad meeting one of the above criteria.

When Can I Apply? Update!

You can apply for the program starting on May 15, 2020 at 6 am Eastern time. For more details on how to apply and inputting an online application please go to the Government of Canada’s website.

When Will I Get Paid?

The most important question of course! The Government of Canada’s website says that if CRA has your direct deposit information, your payment will take 3 business days. If not, then a cheque will take about 10 business days.

Conclusion

The Canada Emergency Student Benefits Program is a way to help the many students who cannot find employment. It helps close the gap of students who don’t qualify for Employment Insurance or the Canada Emergency Response Benefits Program. Hopefully the program will be up and running shortly. When we get more details, we will update this page with further information.