Parliament Hill is pictured through an iron fence in Ottawa on Thursday, April 4, 2019. THE CANADIAN PRESS/Sean Kilpatrick

EI benefits for sick workers cost feds $1 billion a year

Extending EI benefits could rise to an extra $1.3 billion five years later

Providing income support for a year to people who are too sick to work would cost the federal government $1 billion more than its current program, the parliamentary spending watchdog said Thursday, adding new numbers to a debate about the future of the four-decade-old benefit.

As is, the benefit available through employment insurance covers just over half of a worker’s earnings for 15 weeks, and nearly four in 10 beneficiaries max out those benefits, according to government figures.

Just over three-quarters of the claimants who use up all their benefits don’t immediately return to work after their 15 weeks are up, parliamentary budget officer Yves Giroux reported, with most staying off the job for another 26 weeks.

READ MORE: Liberals promise tax credit, EI benefit to help workers retrain

Extending coverage to a maximum of 50 weeks would cost about $1.1 billion, rising to an extra $1.3 billion five years later.

EI sickness benefits are the only of the so-called special benefits under the EI program that the Liberals have not amended since coming to office. Maternity and parental benefits and programs for people caring for seriously ill or injured family members have all been expanded.

However, there appears to be all-party support for a motion in the House of Commons to have a committee of MPs study extending the sickness benefit, which hasn’t been updated since its introduction in 1971.

The minister responsible for the program said Thursday that any changes to the benefit need to take into account the growth of private and employer-sponsored insurance and of other public programs.

“Whenever we are talking about this important benefit, we also need to take into account the broader picture and make sure we do this in the best possible way,” Social Development Minister Jean-Yves Duclos said.

Opposition critics say the numbers from Giroux will fuel cross-party talks on ways to address gaps in the system, including the thousands of claimants who go for weeks without income before getting back to work, or don’t qualify for disability pensions through the Canada Pension Plan.

“What’s clear to me … is we need to move beyond the 15 weeks as soon as possible,” said New Democratic Party critic Niki Ashton. “This is a very serious issue for people who live with illnesses and have not been able to access the supports they need.”

Conservative critic Karen Vecchio said MPs need to assess what Canadians want out of the program and also what they’re willing to pay.

“We have to find something that helps Canadians,” she said, adding that “for some families, this is make or break.”

In 2017, the most recent year for which numbers are available, sickness benefits were provided to more than 400,000 claimants at a cost of about $1.6 billion — about one-fifth of all EI claims.

The additional costs to stretch payments to 50 weeks would vary depending on the number of claimants and the average length of time they are off work, from between $899 million and $1.26 billion in the first year, to between $1.06 billion and $1.48 billion after five years.

To pay for it all, Giroux calculates the government would have to raise EI premiums to $1.68 for every $100 of insurable earnings, an increase of six cents.

Marie-Helene Dube, a cancer survivor who has run a campaign called “15weeks” for a decade calling for an extension of the sickness benefit, said workers would spend more on coffee each day than extra premiums.

“I am outraged at this government’s chronic inaction on this issue, despite all of its promises,” she said. “It shows very little respect for the sick citizens who have made contributions (to EI) all their lives.”

READ MORE: Demand for EI sickness benefits on the rise; NDP cites need for update

Workers who qualify for payments must have worked at least 600 hours in the 52 weeks before they filed their claims, the equivalent of about 16 weeks of full-time work.

In a separate report, Giroux estimated that cutting the number of qualifying hours to 360 would allow just over 73,000 more people to access payments and cost the EI program roughly $325 million in the first year. Giroux said this change would require EI premiums to go up by two cents each year.

Jordan Press, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nelson Tennis Club asks school district for $69K

The funding will cover paving costs for its facility at L.V. Rogers

Permitting process pushes back completion for Slocan fibre-optic line

Work may not be done until summer 2021, more than a year after initial completion date

Hiromoto Ida presents Birthday Present for Myself

The dancer-actor-choreographer partners with Allison Girvan for a story about an old man’s last day

Stroke survivors lean on each other in Nelson

‘I’ve learned more about strokes from being in the group than I did from anyone else’

Blair says RCMP have met Wet’suwet’en conditions, so barricades should come down

The Wet’suwet’en’s hereditary chiefs oppose the Coastal GasLink project

PHOTOS: RCMP call on kids to name latest police puppy recruits

This year’s theme is the letter ‘N,’ and 13 German shephards must be named

B.C., federal ministers plead for meeting Wet’suwet’en dissidents

Scott Fraser, Carolyn Bennett standing by to return to Smithers

B.C. mom’s complaint about ‘R word’ in children’s ministry email sparks review

In 2020, the ‘R’ word shouldn’t be used, Sue Robins says

New Jamie Bacon trial for counselling to commit murder charge set for March 3

The trial is set to start on March 3 at B.C. Supreme Court

Federal minister pledges to meet Wet’suwet’en chiefs in B.C. over natural gas pipeline

The Wet’suwet’en hereditary chiefs say they are visiting Mohawk territory

2010 leader John Furlong urges Vancouver to bid for 2030 Winter Games

VANOC said the 2010 games broke even financially

Pipeline dispute: Tories put no-confidence motion on House of Commons agenda

Conservatives say they have no confidence in the Trudeau government to end the rail blockades

Most Read