Emergency benefit applicants in N.W.T. cautioned against applying without qualifying

There's help available for people in the N.W.T. looking to tap into the federal Canada Emergency Response Benefit, but that help is often coming with a caution that there will be consequences for collecting benefits if you do not qualify for the program.

The federal government introduced the benefit on March 15 for anyone who has lost their job due to the COVID-19 pandemic. In an effort to get benefits to people as soon as possible, it does not require applicants to provide proof they qualify.

After providing a social insurance number and answering only a few questions online or by telephone, applicants will get $500 per week for up to 16 weeks. As of May 24, just over $40.3 billion had been paid out through the CERB program, according to statistics from the federal government.

"If homeless adults are requesting assistance, our case workers are ensuring they qualify and assisting them in the process," said Denise McKee, the executive director of the N.W.T. Disabilities Council, which runs the day shelter and sobering centre in downtown Yellowknife.

McKee did not respond to questions about how many people had requested assistance. To qualify for benefits, a person must have earned at least $5,000 the previous year and have lost their job or been laid off as a result of the COVID-19 pandemic.

Consequesnces for collecting without qualifying

So far, 8.2 million Canadians have received benefits under the CERB program. That amounts to about 50 per cent of the country's labour force (15 years of age and older) of about 16 million people, according to Statistics Canada.

The Northwest Territories YWCA is cautioning clients against collecting a benefit they may not be entitled to receive. An official there said several are now paying back CERB money they received, but for which they did not qualify.

The organization's finance director, Charlotte Henschel, said those collecting the benefit who are not entitled to it may face years of having it clawed back from other benefits they receive.

The CRA will take the GST rebate or child tax credit, because it's going to be years paying it back after.- Charlotte Henschel, finance director at YWCA NWT

"We talk to them about what's going to end up happening, including that the CRA will take the GST rebate or child tax credit, because it's going to be years paying it back after."

A territorial Justice Department program aimed at helping people in need access territorial government programs is also cautioning people from viewing the CERB program as free money.

"(The integrated case management program) pathfinders have been supporting program participants with questions about the CERB to ensure they are aware of the eligibility criteria, and the consequences if they receive the funding without actually being eligible," said Justice official Sue Glowach in an email.

"These consequences are related to how Canada Revenue Agency will likely recover any ineligible amounts at tax time, and how this could result in people having to pay the money back through the CRA."