Remission for Students' CERB and EI Overpayments

Summary#

The Certain Emergency Response Benefits Remission Order lets some students who got the emergency income supports during COVID-19 avoid repaying part of those payments. It cancels (remits) amounts equal to what they could have received under the Canada Emergency Student Benefit (CESB), subject to conditions and an application.

What it does#

• It gives a remission (forgiveness) of some overpaid amounts for people who received the Canada Emergency Response Benefit (CERB) or the Employment Insurance Emergency Response Benefit (EI-ERB) but were later found ineligible and have repaid or must repay those amounts.
• The amount remitted for each four-week period is up to the amount the person would have received under the CESB, and cannot exceed what they actually received under CERB/EI-ERB for that period.
• Practical examples:
  • CERB paid $500 per week (so $2,000 for a 4‑week period). CESB paid $1,250 for a 4‑week period (or $2,000 if the student had a disability or dependants).
  • For a typical 4‑week period, an eligible person would therefore only need to repay $750 (the difference between $2,000 and $1,250). In cases where CESB would have been $2,000, the CERB/EI‑ERB debt for that period can be fully remitted.
• To get the remission a person must:
  • have applied for the CERB/EI‑ERB for the period not later than September 30, 2020;
  • have repaid, or be required to repay, the ineligible CERB/EI‑ERB amounts;
  • not have received CESB for the same period;
  • file income tax returns for 2019 and 2020 by December 31, 2022; and
  • apply for the remission in the form and manner set out by the government (forms will be available from the CRA/Commission).
• The government estimates this will affect as many as 98,000 people and cost about $67.9 million.

Who's affected#

• Primarily post‑secondary students, recent graduates and similar people who:
  • received CERB or EI-ERB for periods when they were later found ineligible, and
  • would have been eligible for CESB for those same periods if they had applied, and
  • meet the filing and application deadlines (see above).
• It also covers people who voluntarily repaid ineligible CERB/EI‑ERB amounts before seeking remission; they can be reimbursed up to the CESB amount they would have received.
• The exact count of eligible people is an estimate; the CRA suggested up to 98,000, but eligibility depends on each person’s facts and meeting the Order’s conditions.

Why it matters#

• It prevents students from facing large COVID‑era debts for benefits they received in good faith but later were judged ineligible for. Overpayments could otherwise have reached up to $14,000 for some people.
• The Order restores, in part, the original policy intent of the CESB by ensuring students aren’t worse off simply because they applied for the earlier emergency payments.
• Eligible people must act: file their 2019 and 2020 tax returns by December 31, 2022 and submit the remission application to get the benefit.