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
'Anything to win': Trudeau says as Poilievre defends meeting protesters
Prime Minister Justin Trudeau is accusing Conservative Leader Pierre Poilievre of welcoming 'the support of conspiracy theorists and extremists,' after the Conservative leader was photographed meeting with protesters, which his office has defended.
What is changing about Canada's capital gains tax and how does it impact me?
The federal government's proposed change to capital gains taxation is expected to increase taxes on investments and mainly affect wealthy Canadians and businesses. Here's what you need to know about the move.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Pilot reported fire onboard plane carrying fuel, attempted to return to Fairbanks just before crash
One of the two pilots aboard an airplane carrying fuel reported there was a fire on the airplane shortly before it crashed and burned outside Fairbanks, killing both people on board, a federal aviation official said Wednesday.
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Quebec nurse had to clean up after husband's death in Montreal hospital
On a night she should have been mourning, a nurse from Quebec's Laurentians region says she was forced to clean up her husband after he died at a hospital in Montreal.
7 surveillance videos linked to extortions of South Asian home builders in Edmonton released
The Edmonton Police Service has released a number of surveillance videos related to a series of extortion cases in the city now dubbed 'Project Gaslight.'
Ukraine uses long-range missiles secretly provided by U.S. to hit Russian-held areas, officials say
Ukraine for the first time has begun using long-range ballistic missiles provided secretly by the United States, bombing a Russian military airfield in Crimea last week and Russian forces in another occupied area overnight, American officials said Wednesday.
Local Spotlight
Fergus, Ont. man feels nickel-and-dimed for $0.05 property tax bill
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
'I'm committed': Oilers fan won't cut hair until Stanley Cup comes to Edmonton
A local Oilers fan is hoping to see his team cut through the postseason, so he can cut his hair.
'It's not my father's body!' Wrong man sent home after death on family vacation in Cuba
A family from Laval, Que. is looking for answers... and their father's body. He died on vacation in Cuba and authorities sent someone else's body back to Canada.
'Once is too many times': Education assistants facing rising violence in classrooms
A former educational assistant is calling attention to the rising violence in Alberta's classrooms.
What is capital gains tax? How is it going to affect the economy and the younger generations?
The federal government says its plan to increase taxes on capital gains is aimed at wealthy Canadians to achieve “tax fairness.”
UBC football star turning heads in lead up to NFL draft
At 6'8" and 350 pounds, there is nothing typical about UBC offensive lineman Giovanni Manu, who was born in Tonga and went to high school in Pitt Meadows.
Cat found at Pearson airport 3 days after going missing
Kevin the cat has been reunited with his family after enduring a harrowing three-day ordeal while lost at Toronto Pearson International Airport earlier this week.