Ottawa Extends Wage And Rent Subsidies To End Of October

The federal government in Ottawa has extended its pandemic aid programs through to the end of October.

Wage and rent subsidies for businesses, and income support for workers out of a job or who need to take time off to care for family or stay home sick, will now last until October 23. Ottawa had previously planned to end its wage and rent subsidies in September after Labour Day.

Three forms of “recovery benefits” for workers will now continue paying out $300 a week and four more weeks of eligibility will be added to a maximum of 54 weeks of benefits.

The federal government estimates that the revamped aid package will cost an additional $3.3 billion, with two-thirds of that for recovery benefits, and one-third for business supports.

As of July 18, Ottawa had paid out $87.1 billion through the wage subsidies and $5.24 billion in rent relief since the programs launched. As of July 25, the three recovery benefits had paid out a combined total of $26.9 billion.

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The incumbent Liberal government had planned to phase out the pandemic aid, foreseeing enough of a recovery by the fall that many of the measures would no longer be needed.

Officials in Ottawa now say that there are still too many businesses and workers who are not fully back on their feet, noting that it took longer to stamp out the third wave of the pandemic than expected.

Prime Minister Justin Trudeau, who has been travelling across Canada making funding announcements this summer, is expected to call a federal election in September.