Canada extends pandemic benefits through to Oct. 23
The federal government is tapping the brakes on its plans to phase out pandemic aid programs this summer, deciding instead to freeze benefits at current levels and extend help by an extra month beyond the previously planned end date.
The decision means that wage and rent subsidies for businesses, and income support for workers out of a job or who need to take time off to care for family or stay home sick, will last until Oct. 23.
Rates for the wage and rent subsidies will hold at current levels until September, holding off on the previously planned decline.
Similarly, the three "recovery" benefits for workers will keep paying out at $300 per week, and four more weeks of eligibility will be added to a maximum of 54 weeks.
The same extra weeks will be available to workers who have exhausted their employment insurance benefits.
The government estimates the revamped aid package will cost an additional $3.3 billion, with two-thirds of that for the recovery benefits, and one-third for the business supports.
As of July 18, the government had paid out $87.1 billion through the wage subsidies and $5.24 billion more in rent relief since the programs launched. As of July 25, the three "recovery" benefits had combined to pay out $26.9 billion.
The Liberals had planned to phase out the pandemic aid, foreseeing enough of a recovery by the fall that many of the measures would no longer be needed.
Finance Minister Chrystia Freeland said Friday that there were still too many businesses and workers who are not fully back on their feet yet, noting that it took the country a little longer to stamp out the third wave of the pandemic than the government expected.
"And I know all of us are watching carefully the Delta variant and are concerned about that," she said at an event in Hamilton, Ont.
"From the government's perspective, it is essential to do everything we can to be sure the country's economic recovery is fast and robust, and that no one is left behind."
Statistics Canada said Friday its preliminary estimate was that the economy grew by 0.7 per cent in June following two months of declines, and that real gross domestic product grew at an annualized rate of 2.5 per cent in the second quarter.
Total economic activity at the end of June was still about one per cent below pre-pandemic levels, and the labour market was about 340,000 jobs, or almost two per cent, below the levels seen in February 2020.
The Canadian Federation of Independent Business said the government's announcement provides some additional runway for many small businesses still trying to get back to normal sales levels.
The group, which represents 95,000 small businesses nationwide, is also asking for the government to extend the aid until the recovery is more advanced.
"Small firms are keen to replace subsidies with sales, but many firms continue to face a significant lack of demand due to capacity restrictions, border closures and customers hesitant to return to normal activities," president Dan Kelly said in a statement.
By extending the benefits now until October, and holding the wage and rent subsidies at current rates until September, the Liberals have locked in changes before an expected election call next month that would largely put a pause on policy-making.
They could yet be extended further: Budget measures approved by Parliament in June give the government the ability to extend the aid by one more month, if necessary, to the end of November.
NDP Leader Jagmeet Singh said an extra month of aid, while welcome in the face of the threat of a fourth wave, isn't enough for people in hard-hit sectors like tourism that may not see a rebound until next year.
"The Liberals are more focused on plunging the country into an election in a pandemic," he said in a statement. "Canadian families and small businesses don't need an election now. They need help for as long as we are in a pandemic."
On Friday, Freeland also made a plea for people to get vaccinated if they are eligible and have not already done so.
"The single most important economic policy in Canada today is for everyone who can get vaccinated to go out and get vaccinated," she said. "We have done tremendously well, but there's still that last mile to go."
This report by The Canadian Press was first published July 30, 2021.
IN DEPTH
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
'Democracy requires constant vigilance' Trudeau testifies at inquiry into foreign election interference in Canada
Prime Minister Justin Trudeau testified Wednesday before the national public inquiry into foreign interference in Canada's electoral processes, following a day of testimony from top cabinet ministers about allegations of meddling in the 2019 and 2021 federal elections. Recap all the prime minister had to say.
As Poilievre sides with Smith on trans restrictions, former Conservative candidate says he's 'playing with fire'
Siding with Alberta Premier Danielle Smith on her proposed restrictions on transgender youth, Conservative Leader Pierre Poilievre confirmed Wednesday that he is against trans and non-binary minors using puberty blockers.
Supports for passengers, farmers, artists: 7 bills from MPs and Senators to watch in 2024
When parliamentarians return to Ottawa in a few weeks to kick off the 2024 sitting, there are a few bills from MPs and senators that will be worth keeping an eye on, from a 'gutted' proposal to offer a carbon tax break to farmers, to an initiative aimed at improving Canada's DNA data bank.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government’s three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party’s popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn’t be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
'Most of the city is evacuating': Gridlock on Alberta highway after evacuation order in Fort McMurray
Four Fort McMurray neighbourhoods were ordered to evacuate on Tuesday as a wildfire gets closer to the city.
Sask. police seize 1.5M pieces of evidence, lay 60 more charges in child exploitation case
Saskatchewan RCMP have revealed that a historic sexual assault investigation has led to the discovery of alleged crimes against children dating back to 2005.
'Inappropriate' behaviour shuts down Dublin to New York City portal
Less than a week after two public sculptures featuring a livestream between Dublin, Ireland, and New York City debuted, 'inappropriate behaviour' in real-time interactions between people in the two cities has prompted a temporary shutdown.
Bouchard scores late to lift Oilers over Canucks, tie series
After a final frame that saw the visiting Vancouver Canucks claw their way back and tie the game late, a slap shot from the point by Oilers defenceman Evan Bouchard with 38 seconds left (until what seemed like certain overtime) iced the 3-2 victory for Edmonton to knot the series.
Chiefs kicker Harrison Butker rails against Pride month, working women in commencement speech
Kansas City Chiefs kicker Harrison Butker railed against Pride month, working women, President Biden's leadership during the COVID-19 pandemic and abortion during a commencement address at Benedictine College last weekend.
King Charles III unveils his first official portrait since his coronation
King Charles III has unveiled the first portrait of the monarch completed since he assumed the throne, a vivid image that depicts him in the bright red uniform of the Welsh Guards against a background of similar hues.
Full List Are these Canada's best restaurants? Annual top 100 list revealed
The annual list of Canada's top restaurants in the country was just released and here are the places that made the 2024 cut.
Alberta announces the 4 health agencies that will replace AHS later this year
The province has released more information on its plan to break up Alberta Health Services and replace it with four sector-based health agencies.
Biden administration moving ahead on US$1 billion arms package for Israel, AP sources say
The Biden administration has told key lawmakers it is sending a new package of more than US$1 billion in arms and ammunition to Israel, two congressional aides said Tuesday.
Local Spotlight
'We're on standby': Team ready to help entangled right whale in Gulf of St. Lawrence
A team is ready to help an entangled North Atlantic right whale in the Gulf of St. Lawrence.
Thieves caught on camera stealing pet chicken from North Vancouver backyard
A $200 reward is being offered by a North Vancouver family for the safe return of their beloved chicken, Snowflake.
Adopted daughter in the Netherlands reunited with sister in Montreal and mother in Colombia, 40 years later
Two daughters and a mother were reunited online 40 years later thanks to a DNA kit and a Zoom connection despite living on three separate continents and speaking different languages.
'Reimagining Mother's Day': Toronto woman creates Motherless Day event after losing mom
Mother's Day can be a difficult occasion for those who have lost or are estranged from their mom.
Chris Hadfield inspires youth musical in Sudbury
YES Theatre Young Company opened its acclaimed kids’ show, One Small Step, at Sudbury Theatre Centre on Saturday.
Ottawa pizzeria places among top 20 deep-dish pizzas in the world at international competition
An Ottawa pizzeria is being recognized as one of the top 20 deep-dish pizzas in the world.
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Wilfrid Laurier football player drafted despite only playing 27 games in his entire life
A Listowel, Ont. man, drafted by the Hamilton Tigercats last week, is also getting looks from the NFL, despite only playing 27 games of football in his life.
Federal government bans watercraft from Manitoba lake popular with tourists
The threat of zebra mussels has prompted the federal government to temporarily ban watercraft from a Manitoba lake popular with tourists.