By Canadian Press

Extended relief for jobless Canadians to cost Ottawa an extra $5 billion: PBO report

Mar 18, 2021 | 7:20 AM

OTTAWA — Parliament’s budget watchdog says Ottawa’s extension of income support for unemployed workers during the COVID-19 pandemic will tack on more than $5 billion in government spending costs.

The government announced last month it would add 12 weeks of eligibility to the $500-a-week Canada Recovery Benefit in an attempt to get ahead of a looming panic around pandemic relief.

Parliamentary budget officer Yves Giroux says the move will cost an additional $5.2 billion, nudging the total price of the program to $50 billion.

He also says the government’s three-month extension of aid for parents who must stay home with children because of the virus will add an extra $470 million in spending in the coming fiscal year, boosting total expenditures on the caregiver benefit to $3.3 billion.

Giroux projects a further $235 million will be spent on the $500-per-week sickness benefit after it was expanded to four weeks from two so workers can stay home if they’re feeling ill or have to isolate due to COVID-19.

new mayor

Spring Mayoral by-election called in Ladysmith

7h ago

holiday check stops

Nanaimo motorists shine during province-wide crackdown

10h ago

targeted job action

Striking Nanaimo postal workers disrupt Purolator operations

14h ago

Labour groups have asked the Liberals to extend benefits until the end of the year, which is how long they believe it might take before the workers in hardest-hit industries get back on the job.

This report by The Canadian Press was first published March 18, 2021.

The Canadian Press