Pandemic Job Losses Lead to Unexpected Repayment Demands for COVID Benefits in B.C.

A recent report by British Columbia's ombudsperson highlights a legal quirk forcing some residents to repay a provincial pandemic benefit, despite losing their jobs due to COVID-19. The B.C. Emergency Benefit for Workers was designed to offer a one-time $1,000 payment to those eligible for the Canada Emergency Response Benefit (CERB) or who lost their jobs before CERB was available.

However, a group of workers who received regular employment insurance (EI) instead of CERB, due to a bureaucratic technicality, are now being asked to repay the provincial benefit. This situation arose because their previous EI claims were reopened instead of being directed to CERB, making them ineligible for the B.C. benefit under current laws.

The ombudsperson's report criticizes this exclusion as "unfair" and "arbitrary," arguing it contradicts the benefit's intent. Despite recommendations to amend the Income Tax Act retroactively, the B.C. Ministry of Finance has not acted, leaving affected individuals, including a disproportionate number of Indigenous applicants and those on maternity or parental leave, in a difficult position.

This issue underscores the challenges of rapidly implemented pandemic support measures and the need for flexibility in addressing unintended consequences. The report urges the government to rectify this oversight, as it did previously when eligibility criteria were expanded to include more workers.