CERB Clawbacks
July 21, 2026
For some people, the CERB lifeline has become an anchor
The Hamilton Spectator & The Hill Times released a new article written by Amanda Therrien, senior staff lawyer at the National Association of Women and the Law, and Leila Sarangi, national director for Campaign 2000: End Child and Family Poverty. The Article titled “For some people, the CERB lifeline has become an anchor” discusses the Canada Emergency Response Benefit (CERB) Clawbacks impacting vulnerable Canadians, particularly low-income, racialized, refugee, and young populations. CERB was enacted during the COVID-19 pandemic, which caused economic shutdowns, providing financial support during a time of need.
The CERB provided economic relief to low-income Canadians, greatly decreasing poverty rates in Canada during the first year of the pandemic. Despite that, the Canadian Government halted the emergency relief program, resulting in poverty rates returning to previous conditions. The economic implications of the pandemic remain a contemporary issue, as the aftermath, in combination with political instability and tariffs produces economic insecurity.
Despite the weakened economic condition, the Canadian government has diverted significant time and resources to obtain overpayments of CERB. The government has provided $123 million to Employment and Social Development Canada and the Canada Revenue Agency (CRA) with the main goal of obtaining clawbacks. The justifications behind these measures are framed as a needed and justified use of public funds. However, instead of strengthening social safety nets that reduce vulnerability and marginalization, funds are allocated to relentless pursue low-income Canadians.
CERB Clawbacks disadvantage low-income Canadian as acknowledged by the Canadian government. Despite the government highlighting various actions to soften the blow, such as repayment plans, these approaches are sometimes followed by other aggressive approaches like garnished wages.
Unfortunately, although repayments of emergency benefits are limited to a six-year period; there are exemptions to this legislation that can extend for several more years. There is a vital need for policy reform to prevent further debt collection that is deepening an already precarious group.
There is a striking distinction in the treatment of the wealthiest Canadians and the Poor. While the Canadian government squeezes the few resources of the less privileged to obtain back CERB overpayments, which will not make a significant impact on the economy, the rich are exempt from repayment. Affluent asset-owning individuals are absolved of tax obligations under the pretext of hardship. The Canadian government should not impose a financial burden on economically disadvantaged Canadians while waving the debts of the rich. The poorest Canadians should not be required to repay debts that will diminish savings, produce debt, and affect their ability to pay for necessities. Instead, the mandatory repayments of CERB must END, similar to how the luxury tax was abolished for the Upper class.
Read The Full Article Here: For some people, the CERB lifeline has become an anchor