The federal government plans to move out-of-work Canadians into the employment insurance system when a key emergency benefit runs out in the fall, and provide an EI-like support for millions who can’t qualify under existing rules.
The change signals a potentially sweeping overhaul to the decades-old social safety net criticized in recent years for not keeping up with a modern labour force marked by increasing contract and gig work.
It was partly because of those holes that the government created the $80-billion Canada Emergency Response Benefit at the start of the pandemic, which is set to wind down over the coming weeks. Those who already qualify for EI will be moved to that program.
The government is promising a parallel, transitional benefit with EI-like components for those who can’t yet — “and I emphasize yet,” said Employment Minister Carla Qualtrough — get into the EI system.
It will include access to training and the ability to work more hours without having as steep a clawback in benefit payments.
The government is also promising to relax EI eligibility rules like the number of hours required to receive support payments.