The federal government has proposed legislation that would provide benefits of $2,000 per month for four months for workers who lose their incomes as a result of the COVID-19 pandemic.

The government announced the proposed Canada Emergency Response Benefit on March 25, and indicated that the application process for the benefit would open in early April. Income supports would be available as early as 10 days later. The CERB would be a simpler and more accessible combination of the previously announced Emergency Care Benefit and Emergency Support Benefit.

“We know that people are worried about their health, their jobs and their financial situations,” said Finance Minister Bill Morneau. “Our government is doing whatever it takes to protect the health and safety of Canadians, and to support workers, families and businesses. The Canada Emergency Response Benefit would make sure that money gets in the hands of workers as quickly as possible to support them in their time of need, and would help businesses keep their employees during this difficult period.”

The CERB would cover Canadians who have lost their job, are sick, quarantined, or taking care of someone who is sick with COVID-19, as well as working parents who must stay home without pay to care for children who are sick or at home because of school and daycare closures. The CERB would apply to wage earners, as well as contract workers and self-employed individuals who would not otherwise be eligible for Employment Insurance (EI).

Additionally, workers who are still employed, but are not receiving income because of disruptions to their work situation due to COVID-19, would also qualify for the CERB. This would help businesses keep their employees as they navigate these difficult times, while ensuring they preserve the ability to quickly resume operations as soon as it becomes possible.

“The EI system was not designed to process the unprecedented high volume of applications received in the past week,” says the government news release. “Given this situation, all Canadians who have ceased working due to COVID-19, whether they are EI-eligible or not, would be able to receive the CERB to ensure they have timely access to the income support they need.”

Canadians who are already receiving EI regular and sickness benefits would continue to receive their benefits and should not apply to the CERB. If their EI benefits end before October 3, 2020, they could apply for the CERB once their EI benefits cease, if they are unable to return to work due to COVID-19. Canadians who have already applied for EI and whose application has not yet been processed would not need to reapply. Canadians who are eligible for EI regular and sickness benefits would still be able to access their normal EI benefits, if still unemployed, after the 16-week period covered by the CERB.

The CERB forms part of the package of measures that were approved in Parliament on March 25. The total value of those measures is $107 billion. Although the measures were originally costed at $82 billion, Morneau said the price increased because the CERB will be available to more people.