Beginning in March 2020, when the COVID-19 pandemic led to job losses and reduced work hours due to lockdowns, the Canadian government introduced a series of benefit programs. These ran for about 26 months (March 2020 – May 2022) and provided financial support to affected individuals.
Canada Emergency Response Benefit (CERB):
First program introduced (March – September 2020).
Paid $500 per week in 4-week periods for a maximum of 28 weeks (maximum $14,000)
Applicants had to:
attest they stopped working or had reduced hours due to COVID;
have earned at least $5,000 in the previous 12 months; and
have earned less than $1,000 per month during the benefit period (if still working).
Applications were made through an online portal.
Most COVID benefits were administered by the CRA, but CERB was jointly administered by both the CRA and Service Canada, each with its own application portal.
Canada Recovery Benefit (CRB):
Launched in October 2020 after CERB ended, and administered by the CRA only.
Paid $500 per week to individuals who didn’t qualify for EI, including the self-employed.
Eligibility required at least $5,000 in income from specified sources in 2019, 2020, or the previous 12 months before the application.
Program ended October 2021.
Canada Worker Lockdown Benefit (CWLB):
Introduced in October 2021 after CRB ended, closed in May 2022.
Other COVID Programs:
CESB – Canada Emergency Student Benefit.
CRCB – Canada Recovery Caregiving Benefit.
CRSB – Canada Recovery Sickness Benefit.
Eligibility Issues and Repayments:
Some people claimed benefits despite not meeting eligibility requirements.
Some people received duplicate payments due to errors.
From late 2020 onwards, the government started doing validation reviews and sending collection letters to ineligible recipients.
Individuals were allowed to voluntarily repay benefits to avoid penalties, but many still owe money.
Repayments are deductible in the year repaid (Box 201 on T4A or Box 30 on T4E) and not retroactively.
A key dispute arose with self-employed individuals. The CRA initially interpreted the $5,000 income test as net income (after expenses), not gross income. Many applicants had applied using gross income. After public pressure, in February 2021, the CRA clarified that if someone would have qualified based on gross income, they would not have to repay CERB.
Managing COVID Benefit Debt
If you owe money, you can contact the CRA or Service Canada to:
Set up a payment arrangement.
Request a deferral of payments.
Ask about ways to reduce interest or penalties.
Explore other options for resolving the debt.
Who to call:
If Service Canada issued the benefit → 1-866-864-5823
If CRA issued the benefit → 1-833-253-7615
Another option is to challenge the CRA’s decision including through a judicial review application to Federal Court, though legal assistance is often required. Many people have applied for judicial review, but most have lost their cases.