Minister worried possible CERB payment recovery could hurt vulnerable Nunavummiut

The Nunavut government is worried that some Nunavummiut who rely on income assistance payments will be at risk next tax season, because of the Canadian Emergency Response Benefit (CERB).

In a letter to the MLA for Arviat North-Whale Cove John Main, the Department of Child and Family Services said that compared to last year, there were 2,049 fewer "heads of households" who applied for income assistance between February and August of 2020. 

Main shared information from that correspondence in the Legislative Assembly on Wednesday. This week, a special COVID-19 related sitting is underway. 

The Department of Family Services said it can't track which clients didn't apply for income assistance. 

"But it would be reasonable to conclude that CERB has had a significant impact," the territory said in the same correspondence.  

Payments like child benefits could be clawed back

The benefit of $2,000 monthly being paid out since March is meant for Canadians who are out of work because of COVID-19.  

People who already relied on income assistance for their only income prior to the pandemic are not eligible for the CERB, the department said in a spring  public service announcement.

In the assembly, acting minister for child and family services David Akeeagok said the federal government could look to get CERB money back from anyone who received it despite being ineligible. 

He is working with the federal government to try and lessen the negative impacts that could be felt by vulnerable residents in this situation.  

"A majority of our income assistance [clients] also rely on federal programs such as goods and services tax rebates and their child benefits," he said. "If you don't pay for your taxes the first clawbacks would be your federal benefits. We're worried with Nunavummiut that might happen."

In July, federal statistics showed that in March 8,800 people collected the benefit in Nunavut. That's even though in January, only 13,800 people were employed in Nunavut, according to Statistics Canada. And, COVID-19 related job loss in the territory has remained low because more than half of workers are employed by the government.

There are roughly 39,000 people living in Nunavut. Before COVID-19, the unemployment rate was the highest in Canada at 13.4 per cent in 2019.  

Monthly payments through CERB are ending on Sept. 27.

Most residents couldn't get both payments

Main asked what the relationship is in Nunavut between income assistance and the pandemic unemployment benefit, and if the government knows who was eligible and who wasn't.  

"Does the department have any understanding of how many of those individuals who have transitioned to CERB were eligible for the CERB program or non-eligible?" he asked. 

The minister didn't have an answer, but said that the income support process in Nunavut would keep people from receiving two support payments.  

"To seek income assistance, you need to show whether you had any money flowing to your account," Akeeagok said. "So if they had received CERB, they would know that they wouldn't qualify for income assistance." 

There are some exceptions, Akeeagok said. For example, income assistance recipients who worked part time and lost that job because of the pandemic could be eligible for CERB, he said.