Storm clouds pass by the Peace tower and Parliament hill Tuesday August 18, 2020 in Ottawa. The parliamentary budget office says a one-time payment this fall to people with disabilities will cost the federal treasury $792 million. THE CANADIAN PRESS/Adrian Wyld

Storm clouds pass by the Peace tower and Parliament hill Tuesday August 18, 2020 in Ottawa. The parliamentary budget office says a one-time payment this fall to people with disabilities will cost the federal treasury $792 million. THE CANADIAN PRESS/Adrian Wyld

Pandemic-related disability support to cost feds $792 million, PBO says

Budget office warns there may be potential fiscal impacts in subsequent years

The parliamentary budget office says a one-time payment to people with disabilities this fall will cost the federal treasury $792 million.

The majority of that amount will go to about 1.67 million people in payments of up to $600, which the Liberals say are aimed at offsetting any extra costs linked to the COVID-19 pandemic.

The total cost should hit federal books this year, but the budget office warns there may be potential fiscal impacts in subsequent years.

The first legislative push to provide the special payments failed in June when the minority Liberal government couldn’t gain opposition support for a wider spending bill.

A few weeks later, a compromise was struck whereby the Liberals expanded eligibility for the payments to also include veterans.

Payments will max out at $600, drop to $300 for any recipients who receive old age security benefits, and fall to $100 for low-income seniors who receive OAS and the guaranteed income supplement.

The report from the budget watchdog Wednesday notes its estimate on the number of people eligible to receive the payments could be thrown off a bit by a separate part of the federal response to the pandemic.

That is because one of the requirements for payments is to be eligible for the disability tax credit, or having applied for the credit by Sept. 25.

The PBO report says the government’s extension for filing personal income tax returns could reduce the rate at which people recertify for the credit, but calls it a minor source of uncertainty.

The budget office has been independently tracking federal spending through the pandemic to provide its own analysis over the accuracy of government projections.

It updated one of those projections this week in regarding to a special paid leave for federal employees, known as pay code 699.

ALSO READ: Feds roll out $2 billion to fund return-to-school safety amid pandemic

The policy gives federal workers paid time off for emergencies such as having to quarantine with COVID-19 or to care for children or other dependants, and doesn’t require them to use up vacation or sick days first.

Adding in data from June, the budget office estimates that paid leave has cost the government $828 million since March, inclusive of pension and other benefits. That works out to an average of $3,430 per worker who accessed the leave over that time.

The figures also include estimates for departments that haven’t provided data to the budget office.

The report says the number of hours claimed under the policy is “almost certainly an underestimation of the loss of work hours due to the pandemic.”

Use of the policy has dropped from a peak of 72,700 federal workers in April to just over 43,300 in June, the PBO says. The Canada Revenue Agency continues to have the largest share of workers using the leave.

“The Canada Revenue Agency was able to continue many of its core operations despite claiming by far the most hours of 699 leave. This is due to a strong culture of monitoring time spent on specific activities,” the budget office wrote on its website.

“It is therefore highly likely that other federal organizations not completing core operating functions like meeting legislated timelines for access-to-information requests are severely under-reporting the extent of hours of work lost due to the pandemic.”

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusDisability

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

Just Posted

The Thornhill Volunteer Fire Department responded to an engine Dec. 3 on Highway 16, using a compressed air and foam solution to extinguish the flames. (Submitted Photo/Krista Bowman)
Semi truck engine catches fire in Thornhill

Firefighters used a compressed air and foam solution to put out the fire

A volunteer committee is urging the provincial government to complete grizzly habitat mapping. (Ivan Hardwick photo)
Volunteer committee urges province to complete grizzly habitat mapping

Committee says only 18 of 37 watersheds have been mapped, province has spent $500,000 so far

A coal-fired power plant seen through dense smog from the window of an electric bullet train south of Beijing, December 2016. China has continued to increase thermal coal production and power generation, adding to greenhouse gas emissions that are already the world’s largest. (Tom Fletcher/Black Press)
LNG featured at B.C. energy industry, climate change conference

Hydrogen, nuclear, carbon capture needed for Canada’s net-zero goal

Terrace RCMP arrested an impaired driver and found illicit drugs, weapons and stolen property in the vehicle on Nov. 28, 2020. (File Photo)
Terrace RCMP arrest impaired driver in possession of weapons

Weapons, illicit drugs, stolen property found in vehicle

A COVID-19 exposure has been recorded at Centennial Christian School in Terrace. The exposure occurred between Nov. 23 and Nov. 26, 2020. (Centennial Christian School Facebook photo)
COVID-19 exposure recorded at Centennial Christian School in Terrace

It’s the first known school exposure in Terrace

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, Nov. 9, 2020. THE CANADIAN PRESS/Darryl Dyck
Another 694 diagnosed with COVID-19 in B.C. Thursday

Three more health care outbreaks, 12 deaths

A demonstrator wears representations of sea lice outside the Fisheries and Oceans Canada offices in downtown Vancouver Sept. 24, demanding more action on the Cohen Commission recommendations to protect wild Fraser River sockeye. (Quinn Bender photo)
First Nations renew call to revoke salmon farm licences

Leadership council implores use of precautionary principle in Discovery Islands

Ten-month-old Aidan Deschamps poses for a photo with his parents Amanda Sully and Adam Deschamps in this undated handout photo. Ten-month-old Aidan Deschamps was the first baby in Canada to be diagnosed with spinal muscular atrophy through Ontario’s newborn screening program. The test was added to the program six days before he was born. THE CANADIAN PRESS/HO, Children’s Hospital Eastern Ontario *MANDATORY CREDIT*
First newborn tested for spinal muscular atrophy in Canada hits new milestones

‘If Aidan had been born any earlier or anywhere else our story would be quite different’

(Pixabay)
Canadians’ mental health has deteriorated with the second wave, study finds

Increased substance use one of the ways people are coping

An RCMP officer confers with military rescuers outside their Cormorant helicopter near Bridesville, B.C. Tuesday, Dec. 1. Photo courtesy of RCMP Cpl. Jesse O’Donaghey
Good Samaritan helped Kootenay police nab, rescue suspect which drew armed forces response

Midway RCMP said a Good Samaritan helped track the suspect, then brought the arresting officer dry socks

People line up at a COVID-19 assessment centre during the COVID-19 pandemic in Scarborough, Ont., on Wednesday, December 2, 2020. Toronto and Peel region continue to be in lockdown. THE CANADIAN PRESS/Nathan Denette
COVID-19 vaccine approval could be days away as pressures mount on health-care system

Many health officials in regions across the country have reported increasing pressures on hospitals

(Needpix.com)
Pandemic has ‘exacerbated’ concerns for B.C. children and youth with special needs: report

Pandemic worsened an already patchwork system, representative says

Most Read