When the coronavirus pandemic first hit back in March, it was clear there would be a major economic impact. We didn’t know much about the virus, but we did know closing down businesses and schools would be terrible for the economy. That’s why the government almost immediately introduced the Canada Emergency Response Benefit (CERB).
While this was crucial for the economy, it’s not something that can last forever. The CERB was meant to temporarily prop up the economy when it was extremely vulnerable.
Now that an already highly vulnerable economy with significant consumer debt loads is ready to begin the long transformation out of the pandemic, the government knows it will have to start with job creation.
That’s’ why several subsidies are now going to be focused on jobs. However, that doesn’t mean the government will leave other Canadians who may be struggling out in the cold.
New CERB replacement benefit
The new round of benefit measures started just a few weeks ago on September 27. This is the Canada Revenue Agency’s (CRA) replacement for CERB, which it had been distributing basically since the start of the pandemic.
These emergency benefits weren’t cheap on Canadian taxpayers. In fact, estimates show it will cost the federal government around $37 billion. However, despite this heavy cost, the benefit was crucial, not only for those Canadians who lost their jobs but for the entire economy to stay on its feet.
However, as the program ends, we are still in the midst of the pandemic. So new measures had to be rolled out. Since not all former recipients of the benefit can transition to Employment Insurance (EI), the Canada Recovery Benefit (CRB) was introduced.
If you don’t qualify for EI, such as those Canadians who are self-employed, CRB will provide $500 a week for up to 26 weeks until the end of September 2021.
Make sure you only apply if you need it, though. For those who earn more than the $38,000, You’ll have to repay $0.50 of every dollar above that threshold on your next income tax return.
Two other new programs to be mindful of
In addition to having programs to replace CERB for workers who are out of work for prolonged periods, the government has also introduced shorter-term benefits.
For workers who get sick, infected with the virus or otherwise need to self-isolate or quarantine due to COVID-related reasons, the government introduced the Canada Recovery Sickness Benefit (CRSB). This will make sure Canadians receive $500 weekly for up to two weeks during the length of the quarantine.
Similarly, the government introduced the Canada Recovery Caregiving Benefit (CRCB). This benefit is for those Canadians who are unable to work because they’re caring for a child, dependent, or family member at home due to COVID-19. This is also a $500 per week benefit.
These three new benefits replacing CERB combine to give Canadians peace of mind that if something terrible was to happen, you can count on government support. So if you have been leaving money on the sidelines for just this reason, you may want to consider investing it in a hot growth stock such as WELL Health Technologies Corp.
WELL Health Technologies is an exciting healthcare company that owns a digital business as well as a portfolio of clinics. The stock was one of the top growth companies in Canada before COVID-19 has only added to the demand for its telehealth services.
Finding high-quality companies like WELL Health can offer investors significant growth over the next few years. Which is why it’s so crucial you’re aware of all the government benefits and take advantage of what’s available to you. That way you can use what cash you do have to find high-growth investments.
