Canada stops paying public benefits

Canada stops paying public benefits

The Government of Canada has decided to stop broad population funding and replace it with more targeted programs.

On October 23, most pandemic support programs for non-working people and businesses will cease operations.

According to Deputy Prime Minister and Finance Minister Chrystia Freeland, programs such as

  • benefits to populations out of work because of the pandemic;
  • benefits for caring for a family member or child in isolation who is ill with coronavirus;
  • sickness benefit during a pandemic.

From 20 November, the minimum rate unemployment benefit will revert to a pre-pandemic payment system.

Of the programs to support businesses, two will be stopped: a subsidy to compensate rent and employee salaries.

The Government of Canada will now deliver aid in a more targeted way. The purpose of this decision is to reduce costs.

Nevertheless, since the coronavirus situation has not yet been fully resolved, the government has announced 2 new funding programmes.

Assistance to the tourism industry

This program will help hotels, restaurants, and travel agencies as they are still affected by coronavirus restrictions. The benefit covers the cost of salaries and rent.

Assistance to those most affected

This program will help employers who can prove that they suffered serious losses from the pandemic. Their rent and wage costs will be partially reimbursed.

It is known that $7.4 billion will be allocated for new programs. The last benefits package cost $289 billion. The new programs will be in effect until May 7, 2022.

In case of new lockdowns, the government has set up another support program. Those who will be out of work because of quarantine measures can apply for an allowance of $300 CAD per week. However, the program does not apply to those who lose their income because they refuse to follow the vaccination rules.

We already know that unions have reacted negatively to the news of the end of pandemic support programmes. They said that the new programmes would protect businesses but not employees.


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