Canada’s COVID-19 Economic Response Plan
SUPPORT FOR INDIVIDUALS
updated May 1, 2020
Individuals and Families
Temporary salary top-up for low-income essential workers
We will work with provinces and territories through a new transfer to cost-share a temporary top up to the salaries of low-income workers (those who earn less than $2,500 per month on a full time basis), that the provinces and territories have deemed essential in the fight against COVID-19.
This will provide a much needed boost to those on the front-line in hospitals, those caring for seniors in long-term care facilities, those working so hard to make sure that there that is food on our shelves and tables, and others.
Increasing the Canada Child Benefit
We are providing up to an extra $300 per child through the Canada Child Benefit (CCB) for 2019-20. This will mean approximately $550 more for the average family.
This benefit will be delivered as part of the scheduled CCB payment in May.
Those who already receive the CCB do not need to re-apply.
Special Goods and Services Tax credit payment
We are providing a one-time special payment starting April 9 through the Goods and Services Tax credit for low- and modest-income families.
The average additional benefit will be close to $400 for single individuals and close to $600 for couples.
There is no need to apply for this payment. If you are eligible, you will get it automatically.
Extra time to file income tax returns
The filing due date for 2019 income tax returns for individuals has been deferred until June 1, 2020. Any new income tax balances due, or instalments, are also being deferred until after August 31, 2020 without incurring interest or penalties.
Note: If you expect to receive benefits under the Goods and Services Tax credit or the Canada Child Benefit, we encourage you not to delay filing your 2019 income tax return to ensure that your entitlements are properly determined.
Mortgage support
Homeowners facing financial hardship may be eligible for a mortgage payment deferral of up to six months.
The deferral is an agreement between you and your lender. Typically, the agreement indicates that you and your lender have agreed to pause or suspend your mortgage payments for a certain amount of time. After the agreement ends, your mortgage payments return to normal and the deferred payments — including principal and accumulated interest – are added to the outstanding principal balance and subsequently repaid throughout the life of the mortgage.
To know if you are eligible for a mortgage payment deferral or to learn what options are available, contact your lender — your bank or your mortgage professional.
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People facing loss of income
Canada Emergency Response Benefit (CERB)
We will provide a taxable benefit of $2,000 every 4 weeks for up to 16 weeks to eligible workers who have lost their income due to COVID-19.
The CERB is available to workers who meet all of the following conditions:
- live in Canada and are at least 15 years old
- stopped working because of COVID-19 or are eligible for EI regular or sickness benefits
- have not voluntarily quit their job
- had income of at least $5,000 in 2019 or in the 12 months prior to the date of their application.
On April 15, we announced changes to the eligibility rules to:
- Allow people to earn up to $1,000 per month while collecting the CERB.
- Extend the CERB to seasonal workers who have exhausted their EI regular benefits and are unable to undertake their regular seasonal work because of COVID-19.
- Extend the CERB to workers who have recently exhausted their EI regular benefits and are unable to find a job because of COVID-19.
An online questionnaire will help us direct you to the service option that best fits your situation (i.e. eligibility for Employment Insurance benefits or not).
Do not apply for the CERB if you have already applied for EI.
You can also apply over the phone: 1‑800‑959‑2019 or 1‑800‑959‑2041
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Indigenous peoples
Addressing immediate needs in Indigenous communities
We are providing $305 million for a new distinctions-based Indigenous Community Support Fund to address immediate needs in First Nations, Inuit, and Métis Nation communities.
These funds could be used for measures including, but not limited to:
- support for Elders and vulnerable community members,
- measures to address food insecurity,
- educational and other support for children,
- mental health assistance and emergency response services,
- preparedness measures to prevent the spread of COVID-19.
Supporting preparedness in First Nations and Inuit communities
We are providing $100 million to support a range of federal health measures, including support for preparedness in First Nation and Inuit communities. These funds will:
- respond to identified needs to update and activate pandemic plans
- support an effective allocation of public health and primary health care capacity to respond to the COIVD-19 outbreak
- align response efforts with scientific evidence as determined by a medical officer of health
- address immediate needs in the short term
Making personal hygiene products and nutritious food more affordable
We are providing an additional $25 million to Nutrition North Canada to increase subsidies so families can afford much-needed personal hygiene products and nutritious food.
Providing support to Indigenous post-secondary students
In addition to the measures above, Indigenous peoples can also access benefits listed under Support for individuals and Support for businesses.
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In addition to the measures above, Indigenous peoples can also access benefits listed under Support for individuals and Support for businesses.
People who need it most
Improving access to essential food support
We are providing $100 million to national, regional, and local organizations across Canada to:
- Purchase, transport and distribute food and other basic necessities
- hire temporary help to fill volunteer shortages
- implement safety measures, such as the purchase of personal protective equipment, to reduce the spread of COVID-19 among volunteers and clients.
These organizations – including but not limited to Food Banks Canada, Salvation Army, Second Harvest, Community Food Centres Canada, and Breakfast Club of Canada – will work with partners to meet the urgent food needs of Canadians.
Enhancing the Reaching Home initiative
We continue to support people experiencing homelessness during the COVID-19 outbreak by providing $157.5 million to the Reaching Home initiative.
The funding could be used for a range of needs such as purchasing beds and physical barriers for social distancing and securing accommodation to reduce overcrowding in shelters.
Supporting women and children fleeing violence
We are supporting women and children fleeing violence, by providing up to $50 million to women’s shelters and sexual assault centres, including facilities in Indigenous communities, to help with their capacity to manage or prevent an outbreak in their facilities.
Delivering essential services to those in need
We invested $350 million to support vulnerable Canadians through charities and non-profit organizations that deliver essential services to those in need.
The investment will flow through national organizations that have the ability to get funds quickly to local organizations that serve vulnerable populations. It will support a variety of activities, such as:
- Increasing volunteer-based home deliveries of groceries and medications
- Providing transportation services, like accompanying or driving seniors or persons with disabilities to appointments
- Scaling up help lines that provide information and support
- Helping vulnerable Canadians access government benefits
- Providing training, supplies, and other required supports to volunteers so they can continue to make their invaluable contributions to the COVID-19 response
- Replacing in-person, one-on-one contact and social gatherings with virtual contact through phone calls, texts, teleconferences, or the Internet
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Seniors
Reduced minimum withdrawals for Registered Retirement Income Funds
We reduced the required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25 per cent for 2020.
Supporting the delivery of items and personal outreach
We are contributing $9 million through United Way Canada for local organizations to support practical services to Canadian seniors. These services could include the delivery of groceries, medications, or other needed items, or personal outreach to assess individuals’ needs and connect them to community supports.
Providing immediate and essential services to seniors
We announced that organizations who received funding under the 2019-2020 New Horizons for Seniors Program community-based stream will be able to use their funding to provide immediate and essential services to seniors impacted by COVID-19.
Activities can start immediately and can include:
- supporting seniors in staying connected with their community and family by providing electronic devices, virtual activities and remote tutorials;
- supporting the delivery of food and medication to self-isolated seniors at home;
- assisting seniors to undertake essential activities, such as visits to the doctor;
- hiring staff to replace a loss of a senior volunteer due to the outbreak;
- providing information to seniors regarding how to care for themselves during the pandemic.
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Youth, post-secondary students and recent graduates
Canada Emergency Student Benefit (CESB)
We are proposing the Canada Emergency Student Benefit (CESB) that would provide support to students and new graduates who are not eligible for the Canada Emergency Response Benefit or Employment Insurance or unable to work due to COVID-19.
This benefit would provide $1,250 per month for eligible students or $1,750 per month for eligible students with dependents or disabilities.
This benefit would be available from May to August 2020.
This benefit is pending the passage of legislation. More details will be made available soon.
Creating new jobs and opportunities
We are expanding existing federal employment, skills development, and youth programming to create up to 116,000 jobs, placements, and other training opportunities to help students find employment and develop valuable skills this summer and over the coming months.
Launching a new national service initiative
We are launching the Canada Student Service Grant (CSSG), which will help students gain valuable work experience and skills while they help their communities during the COVID‑19 pandemic.
For students who choose to do national service and serve their communities, the new CSSG will provide up to $5,000 for their education in the fall.
More details will be made available on the “I Want to Help” platform soon.
Helping students continue their studies in the fall
Changes to the Canada Student Loans Program
We are proposing changes to the Canada Student Loans Program (CSLP) to allow more students to qualify for support and be eligible for greater amounts.
The changes would include:
- doubling the Canada Student Grants for all eligible full-time students to up to $6,000 and up to $3,600 for part-time students in 2020-21. The Canada Student Grants for Students with Permanent Disabilities and Students with Dependents would also be doubled.
- broadening eligibility for student financial assistance by removing the expected student’s and spouse’s contributions in 2020-21.
- raising the maximum weekly amount that can be provided to a student in 2020-21 from $210 to $350.
Support for student researchers and post-doctoral fellows
We are providing $291.6 million to support student researchers and post-doctoral fellows through the federal granting councils.
Funding would support a one-semester extension for eligible students whose research scholarships or fellowships end between March and August 2020 and who intend to continue their studies. It would also provide a 3-month extension in funding for holders of federal research grants to support eligible trainees and staff paid out of these awards.
Supporting international students working in an essential service
We will remove the restriction that allows international students to work only a maximum of 20 hours per week while classes are in session, provided they are working in an essential service or function, such as health care, critical infrastructure, or the supply of food or other critical goods.
This temporary rule change will be in place until August 31, 2020.
Suspend repayment and interest on Canada Student Loans and Canada Apprentice Loans
All student loan borrowers will automatically have their loan repayments and interest suspended until September 30, 2020.
Students do not need to apply for the repayment pause.
This moratorium applies to the federal portion of student loans. Borrowers should check with their provincial or territorial student loan provider to see if payment is required on the provincial or territorial portion.
Providing youth with mental health support
We are giving $7.5 million in funding to Kids Help Phone to provide young people with the mental health support they need during this difficult time.