Emergency Cash Support for Students

Summary#

This bill creates the Canada Emergency Student Benefit (CESB) for 2020. It authorizes cash payments to eligible students and 2020 high-school graduates who lost work or income opportunities because of COVID-19. The Act sets eligibility rules, application deadlines, and enforcement tools, while leaving dollar amounts, income thresholds, and weeks of coverage to regulations.

• Direct cash benefit for eligible students for set four-week periods in 2020 (Application (1); Eligibility (1); Amount of benefit (1)-(3)).
• Not available to anyone receiving EI, CERB, or certain provincial parental benefits for the same period (Eligibility (1)(b)).
• Applications had to be filed by September 30, 2020; applicants had to attest they were seeking work if applying on that basis (Application (2)-(3)).
• Minister must post job information for students in a government-managed system (Information — employment opportunities (3)).
• Overpayments must be repaid; no interest is charged; government has six years to recover debts (Return of erroneous payment; Limitation period; No interest payable).
• Benefits are protected from assignment, set-off (with limited exceptions), garnishment, and bankruptcy (Benefits cannot be charged, etc.).

What it means for you#

• Households and students

  • Who is eligible: Canadian citizens, registered Indians, permanent residents, or protected persons who were enrolled in a post-secondary program anytime between December 1, 2019 and August 31, 2020; or who graduated high school in 2020 and planned to start an eligible program by February 1, 2021 (Definitions — “student”).
  • What counts as impact: You must be unable to work for COVID-19 reasons, be seeking work and unable to find it, or be working but earning below a threshold set by regulation, during the four-week period you claim (Eligibility (1)(a); Regulations).
  • What you cannot combine: You cannot receive CESB for any part of a four-week period if you also receive EI (or the EI emergency response benefit), the CERB, or certain provincial maternity/parental allowances in that same time (Eligibility (1)(b)(ii)-(iv)).
  • How to apply: Apply in the form and manner set by the Minister; if applying because you are seeking work, you must attest you are actively seeking work (Application (1)-(2)). No applications were permitted after September 30, 2020 (Application (3)).
  • How much and how long: The weekly amount and the maximum number of weeks are set by regulation, and regulations may distinguish among classes of students (Amount of benefit (2)-(3); Maximum number of weeks (2)). Regulations set the flat amounts and the covered four-week periods in 2020 (CESB Regulations, Canada Gazette II, May 2020).
  • Job listings: The government must make available information about student employment opportunities through a government-managed job posting system (Information — employment opportunities (3)).

• Workers (students)

  • You could work part-time and still qualify if your total pay in the four-week period was below the regulatory threshold (Eligibility (1)(a); Regulations).
  • If you began receiving EI or CERB for any part of a claimed period, you became ineligible for CESB for that period (Eligibility (1)(b)(ii)-(iv)).

• All applicants

  • Records and audits: You must provide any information the Minister requires to verify compliance. The Minister may demand documents by notice (Information requests).
  • Overpayments: If you were paid in error or more than allowed, you must repay as soon as feasible. The amount becomes a debt to the Crown and can be certified in Federal Court (Return of erroneous payment (1)-(3)).
  • Time limits: The government generally has six years from when the money became due to start recovery actions; that period can be paused in certain circumstances or restarted upon acknowledgment (Limitation or prescription period (1)-(7)).
  • No interest: No interest is charged on CESB overpayments (No interest payable).
  • Protections: The benefit cannot be assigned, seized, used as security, or garnished under the Family Orders and Agreements Enforcement Assistance Act, and is protected from bankruptcy or insolvency proceedings (Benefits cannot be charged, etc.).
  • Personal information: The Minister may collect and use your Social Insurance Number for administering and enforcing the Act (Social Insurance Number).

Expenses#

Estimated net cost: Data unavailable. Program operated only in 2020; amounts and take-up were set by regulation and administration.

• Appropriation authority: The Act authorizes payments for CESB and enables regulations to set benefit amounts, duration, and eligibility thresholds (Amount of benefit (2); Maximum number of weeks (2); Eligibility (2)).

• Per-student amounts and limits (set by regulation):

  Item	Amount	Frequency	Source
  Base benefit	CAD $312.50/week (CAD $1,250 per 4-week period)	Up to the maximum number of weeks set by regulation	CESB Regulations, Canada Gazette II, May 2020
  Top-up for students with a disability or with dependants	Additional CAD $187.50/week (total CAD $500/week, CAD $2,000 per 4-week period)	Up to the maximum number of weeks set by regulation	CESB Regulations, Canada Gazette II, May 2020
  Maximum weeks	Up to 16 weeks	2020 four-week periods set by regulation	CESB Regulations, Canada Gazette II, May 2020
  Application deadline	September 30, 2020	One-time	Act — Application (3)

• Tax treatment and total federal spending: Data unavailable.

Proponents' View#

• Targeted income support for students hurt by COVID-19: The Act covers those unable to work, seeking work but unable to find it, or earning below a set threshold during a claim period (Eligibility (1)(a)). Regulations provided flat, time-limited payments to bridge lost income (CESB Regulations, Canada Gazette II, May 2020).
• Avoids double-paying with other programs: Ineligibility while receiving EI or CERB reduces overlap and controls costs (Eligibility (1)(b)(ii)-(iv)).
• Quick setup and flexibility: Leaving amounts, weeks, and earnings thresholds to regulation allowed the government to adjust design and apply it retroactively if needed to match the pandemic timeline (Amount of benefit (2); Maximum number of weeks (2); Retroactive effect).
• Supports job search: Requiring a work-seeking attestation and posting jobs on a government system links benefits with employment opportunities (Application (2); Information — employment opportunities (3)).
• Fair and predictable enforcement: Clear overpayment rules, a six-year limitation period, and no interest on repayments protect both program integrity and applicants from growing debts (Return of erroneous payment; Limitation period; No interest payable).

Opponents' View#

• Fiscal risk and uncertainty: The Act provides broad authority, with key cost drivers (amount per week, maximum weeks, earnings threshold, and coverage periods) set by regulation, not by statute, creating budget uncertainty at passage (Amount of benefit (2); Maximum number of weeks (2); Eligibility (2); Retroactive effect).
• Work disincentive concerns: Allowing eligibility while earning below a threshold may reduce hours worked during claim periods, depending on where the threshold is set (Eligibility (1)(a); Regulations). The Act does not require proof beyond an attestation of seeking work at application (Application (2)).
• Coverage gaps and equity: International students are excluded; only citizens, registered Indians, permanent residents, and protected persons qualify (Definitions — “student”). Some non-student youth who also lost work were not eligible.
• Complexity and overlap risks: Multiple programs (CESB, CERB, EI) with different rules could cause confusion and accidental double-claims, leading to later repayments (Eligibility (1)(b)). The six-year recovery window means prolonged uncertainty for applicants (Limitation or prescription period (1)).
• Enforcement capacity: While the Minister can demand documents and certify debts in Federal Court, verifying millions of claims post-payment can be resource-intensive and slow (Provision of information and documents; Certificate of default).