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Just the Facts

HRSDC Just the Facts

HRSDC Just the Facts – a feature to help dispel myths and misconceptions as well as raise awareness about HRSDC programs.

Child Care

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Issue

Supporting the child care choices of Canadian families.

Fact

The federal government is committed to helping parents balance work and family life. It is important to provide parents with real choices in deciding what is best for their children. That is why support to families with children is being provided through transfers to provinces and territories, direct spending and tax measures for families.

Parents now have child care choices through the Universal Child Care Plan, which includes the Universal Child Care Benefit and the creation of child care spaces.

The Universal Child Care Benefit provides $100 per month for children under the age of six. The benefit puts choice for child care where it belongs—in the hands of parents—and allows them to choose the option that best suits their family’s needs. The Universal Child Care Benefit provides $2.4 billion per year to 1.5 million families for 2 million young children.

In addition, in Budget 2007, the federal government announced the $2000 Child Tax Credit. This new credit will provide up to $310 per child in tax relief to more than 3 million Canadian families. This is an additional $1.5 billion per year in tax support for families with children.

To help Canadian parents better balance child care and work responsibilities, the federal government is investing in the creation of new child care spaces. A 25 percent investment tax credit will be given to businesses that create new child care spaces for their employees, to a maximum of $10,000 per space created.

Budget 2007 also confirmed that the federal government will provide $250 million per year to the provinces and territories, beginning this year, to support the creation of child care spaces.

Existing funding under the Canada Social Transfer (of $850 million per year) is being extended to 2013-14. This will go to provinces and territories for early childhood development and early learning and child care.

All told, the Government of Canada is providing nearly $5.6 billion in 2007-08 to support early learning and child care through transfers, direct spending and tax measures, including:

  • $1.1 billion in cash transfers to provinces and territories.
  • $2.4 billion annually through monthly payments to parents for every child under the age of six through the Universal Child Care Benefit.
  • $695 million in recognition of child care expenses through the child care expense deduction.
  • About $1.5 billion per year in tax support for families with children through the new child tax credit.

For more information on the Universal Child Care Plan, please visit: http://www.universalchildcare.ca/en/home.shtml

Pension Benefits and Other Improvements for Seniors

Issue

Canada Pension Plan (CPP), Old Age Security (OAS) and Guaranteed Income Supplement (GIS) benefits are key components of Canada’s public pension program. Canadians must apply to receive these benefits. The Government undertakes various initiatives to encourage Canadians to apply for these benefits.

Fact

Service Canada’s goal is to provide Canadians with one-stop, personalized service they can access however they choose – by telephone, Internet, or in person.

Currently there are over 590 points of service across Canada for seniors to access. These points of service are comprised of Service Canada Centres, outreach sites and community offices.

Additionally, services are also available via the Internet, 1-800 O Canada and mail channels, thus allowing seniors to access services through their channel of choice.

Service Canada launched a national advertising campaign to raise awareness of the Government of Canada’s programs and services for seniors. The campaign “Service to Canadians” encourages seniors to contact Service Canada for information and access to federal programs and services. (The campaign was launched in March 2007 and again on September 24th 2007.)

A focused seniors campaign will also include an insert to be placed in Canada’s major dailies and weeklies, on tax relief for seniors and financial programs (i.e. CPP, OAS) particularly in major retirement communities, to be released November 17th 2007.

Service Canada has also introduced a page on the Internet devoted to content of particular interest to seniors at servicecanada.gc.ca that is continually updated with new information of interest to seniors.

Here are some examples of how the Government of Canada reaches individual Canadians directly:

Based on information related to their CPP contributions, the Government is able to identify Canadians who are approaching the age of 65. Armed with this data, the Government mails application packages both for the Canada Pension Plan and Old Age Security, as appropriate. In 2006, we mailed about 268,000 such packages.

We also send Notice of Entitlement letters to new recipients of Old Age Security or Canada Pension Plan benefits. These letters draw attention to other possible benefits available to seniors. For example, recipients of Old Age Security will be told about their possible eligibility for the Canada Pension Plan, and how to go about applying for it.

Every year at tax time, we insert information about the range of benefits into the T4 slips that are mailed to millions of clients already receiving CPP or OAS benefits.

In the past eight years, we have mailed CPP application forms to clients aged 70 on five separate occasions, resulting in an additional 30,000 contributors applying for benefits.

How do recent changes in legislation help?

Bill C-36 (An Act to Amend the Canada Pension Plan and Old Age Security Act) gives the Government the authority to allow seniors to apply for CPP and OAS benefits via the internet in the future. Application forms for benefits will be simplified and streamlined.

The bill further simplifies the GIS renewal process by allowing a “life-time” Guaranteed Income Supplement (GIS) application. Canadians will only need to apply once to have their eligibility for GIS considered each year. Recipients who file income tax returns would never have to reapply.

The Government of Canada has recently made the following efforts to improve the lives of seniors:

  • appointing the Honourable Marjory LeBreton to the position of Secretary of State (Seniors);
  • creating the National Seniors Council;
  • providing tax relief by allowing pension income splitting for pensioners, beginning in the 2007 tax year;
  • providing tax relief by increasing the age credit by $1,000 (from $4,066 to $5,066), effective in the 2006 tax year;
  • providing tax relief by increasing the maximum amount of eligible pension income that can be claimed under the pension income credit from $1,000 to $2,000, putting almost $900 million back in the hands of seniors over the next two years and removing 85 000 pensioners from the tax rolls;
  • increasing the Guaranteed Income Supplement maximum benefit, benefiting over 1.5 million low-income seniors, and proposing legislation to make it easier for seniors to apply for and receive the Supplement;
  • expanding the Compassionate Care Benefit, making more family members and friends eligible;
  • increasing the Refundable Medical Expense Supplement tax credit by more than 30 per cent to $1,000;
  • introducing the Targeted Initiative for Older Workers; and
  • announcing the expansion of the New Horizons for Seniors Program by $10 million per year, with a portion of the new funding to be used for education about elder abuse and fraud.

Volunteering and EI Benefits

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Issue

Can you volunteer and still be entitled to receive Employment Insurance (EI) benefits?

There is a misconception that Canadians who volunteer are not entitled to receive EI benefits.

Fact

Yes, you can do some volunteer work and still receive Employment Insurance benefits.

How does the EI program work?

The EI program pays you regular benefits if you lose your job through no fault of your own-for example, because of a shortage of work or a seasonal or mass lay-off-and you are available for and willing to work but you cannot find a job.

To be eligible for regular EI benefits, you must show that:

  • you have been without work and without pay for at least seven consecutive days; and
  • during the last 52 weeks or since your last claim, you have worked for the required number of insurable hours. This minimum number of hours is based on where you live and the unemployment rate in your region at the time you file your claim for benefits.

While claiming regular benefits, you must be available and willing to work, and you must be actively looking for work. Being available for work means you are willing to accept an offer of employment to which you are suited by skill, training, aptitude, or experience, and that you are willing to accept such an offer of employment for which there is a demand in the labour market. Being available for work involves more than waiting passively for a job offer-it also means acting in a way that reflects a sincere desire to work, and that clearly shows you have been unable to find a job.

What are the rules on volunteering?

Performing volunteer work does not mean you are no longer entitled to receive EI benefits. As long as individuals are still available for and actively looking for work every day, they remain eligible for EI.

For the purposes of the EI program, we consider volunteer services to be work performed for which you receive no pay, and for which you do not derive or hope to derive any benefit, profit, or financial or economic advantage.

For more information on the Employment Insurance program, please visit servicecanada.gc.ca/en/sc/ei/index.shtml.

Foreign Workers

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Issue

Conviction of labour brokers for unlawfully employing foreign nationals

Fact

Two labour brokers in the Leamington area of Ontario have been found guilty of unlawfully supplying foreign workers to employers. This conviction resulted from charges laid by the Canada Border Services Agency under the Immigration and Refugee Protection Act.

Labour brokers recruit workers from other countries to work in Canada. The two men were sentenced on September 28 to three months' house arrest and fined $65,000.

The workers recruited by these labour brokers were from Indonesia, Malaysia, Cambodia, El Salvador and Mexico. They were recruited outside of the provisions of the Temporary Foreign Worker Program, which works with employers to fill labour and skills needs temporarily with foreign workers when Canadians are not available.

Minister Solberg has made it clear that there must be zero tolerance for exploitation, mistreatment or wrongdoing by unscrupulous employers or recruiters. The federal government is currently exploring options to strengthen compliance mechanisms for the protection of temporary foreign workers.

As an important first step, the federal government is developing Memoranda of Understanding with provincial governments to facilitate information sharing, critical to ensuring that the rights of temporary foreign workers are protected and that the terms of employment are fulfilled. Agreements with Alberta and British Columbia have already been announced, and discussions are under way with other provinces.

Funding for Skills Training in Nova Scotia

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Issue

Reports suggest Service Canada won’t be able to deliver adequate Skills Training funding to Nova Scotians.

Fact

There have been no funding cuts. Everyone for whom funding has been committed and approved will get the funding as promised.

Canada’s New Government is investing more in training programs to build the best educated, most adaptable, and best skilled work force in the world.

In Nova Scotia alone, we annually invest more than $80 million to give support to local citizens and communities.

In addition, Budget 2007 announced an investment of $500 million annually starting next year to provide employment programming, including training for those unable to access similar programming under current EI programs, and to encourage employers to provide more training to their workers.

Budget 2007 also included an increased investment of 40 percent in funding for post secondary education.

Service Canada is committed to quality service delivery, and makes every effort to work with both individuals and project sponsors to invest in initiatives that respond to the priority needs of Nova Scotia’s citizens and communities.

Interest collected by the Canada Student Loan Program (CSLP)

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Issue

Canada Student Loans - Interest rates, repayment options and client satisfaction

Fact

Budget 2007 launched a review of the Canada Student Loans Program (CSLP) in consultation with provinces, territories and stakeholders, leading to changes that are expected to be announced in the 2008 Budget. The review is intended to simplify the Program instruments, make them more effective, and ensure integrated administration and efficient delivery.

In 2005-06, the Canada Student Loan Program invested $1.9 billion in student financial assistance, helping nearly 350,000 students to access post-secondary education 1. In a March 2007 survey, 75% of direct loan borrowers said they were satisfied or very satisfied with the program and 81% said the services were provided in a fair manner 2. The Auditor General also noted that the Canada Student Loans Program is well-managed 3.

CSLP offers need-based, no-payment and no-interest loans for most students during study, without security or guarantee. Interest rates in repayment reflect the higher risk associated with unsecured loans. This interest only partly covers the costs associated with helping borrowers who have trouble repaying their loans, and the cost of loan default write-offs.

A number of factors affect the value of a student loan:

  • For full-time students, interest on student loans does not accumulate and no payments need to be made.
  • When they begin repaying their loans, borrowers can choose either a fixed interest rate (prime + 5%) or a variable rate (prime + 2.5%).
  • Interest paid on Canada Student Loans is tax-deductible. This is usually equal to about 1.0 to 1.5% reduction in interest rates.
  • Borrowers can adjust their loans to fit their income and financial situation. They can lower their monthly payments by extending the length of their loan term, or increase their monthly payments to repay faster. Since 2000, 18% of direct loan borrowers chose to lengthen repayment terms, while 6.5% shortened them.
  • Borrowers who have financial hardships while repaying their loans can apply for interest relief and the Government of Canada will absorb the interest portion of the loan payment for eligible borrowers. In 2004-05, over 100,000 borrowers received interest relief worth $64.8 million.
  • Borrowers who face long-term financial hardship can also apply for debt reduction. In 2004-05, 5,029 borrowers benefited from debt reduction, valued at $36.1 million.

CSLP also offers a number of programs to help students with permanent disabilities. For example, borrowers who face financial difficulty while repaying their student loans due to a permanent disability may qualify to have their loans forgiven under the Permanent Disability Benefit.

Increased awareness of debt management measures has helped reduce student loan default rates.  The default rate has dropped from 37.7% in 2001-02, to forecasted rate of 15.2% for 2005-06.

For more information about Canada Student Loans, please visit: http://www.hrsdc.gc.ca/en/learning/canada_student_loan/index.shtml

Canada Summer Jobs

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Issue

Helping students find good summer jobs.

Fact

Canada Summer Jobs is a new initiative under the Summer Work Experience program. Through wage subsidies, it helps Canadian employers create career-related summer jobs for students between the ages of 15 and 30. The initiative helps young people not only find a job, but ultimately get a good start on a career.

Canada Summer Jobs is about:

  • providing high-quality, career-related summer jobs;
  • creating jobs that would not otherwise be created; and
  • helping students who need it the most because of where they live and/or other barriers.

Right now, unemployment is the lowest it has been in 30 years. Canadian youth are benefitting from both the buoyant economy and the strong labour market. More than 60,000 jobs were posted at Service Canada Centres for Youth by May 2007. Experience with the summer employment programs indicated that many larger private sector employers would hire students without a wage subsidy. That’s why private sector employers with more than 50 employees are not eligible under the Canada Summer Jobs Initiative.

As a result, when funding decisions were made, priority was given to proposals that:

  • employed students living in communities with high youth unemployment rates, small urban, rural or remote areas, and/or high crime areas;
  • employed students facing barriers to the labour market, such as Aboriginal students;
  • employed students with a disability;
  • giving students a meaningful and career-related work experience, providing an important financial contribution towards their continued education and future; and
  • created job opportunities for students to work in organizations with social, community, health or environmental mandates.

Canada Summer Jobs was designed to suit today’s economic and labour market. Fair objectives and rigorous criteria were set for proposals received. However, as the program was being launched, it became clear that a number of organizations were not successful under the new criteria. The department responded quickly by reviewing unsuccessful applicants (concentrating on not-for-profit and public-sector organizations) to support high-quality jobs within organizations delivering important services to the community.

Canada Summer Jobs was designed to reflect a strong economy and a dynamic labour market. The program faced some challenges and the department has benefited from lessons learned. As with every program, HRSDC/Service Canada will assess results, gather input and make recommendations for changes if they are warranted. The focus will remain on helping students succeed in their schooling and their careers.

For more information about Canada Summer Jobs, please visit: http://www1.servicecanada.gc.ca/en/epb/yi/yep/programs/scpp.shtml

Support for Students

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Issue

Supporting post-secondary education.

Fact

In Budget 2007 Canada's New Government launched a review of the Canada Student Loans Program in consultation with provinces, territories and stakeholders to simplify the program's instruments, to make them more effective, and ensure a more integrated administration and efficient delivery of the program. The process will result in changes that will be announced in Budget 2008.

Budget 2007 announced that Canada Social Transfer payments for post-secondary education will rise to $3.2 billion in 2008-09; a 40 per cent increase.

That means the government is investing an additional $800 million per year, beginning in 2008-09, for provinces and territories to strengthen the quality and competitiveness of Canada’s post-secondary education system.

As well, the greatest number of scholarships ever granted will be available to our graduate students through the Canada Graduate Scholarships program. These prestigious awards are worth $17,500 per year for Masters students, and $35,000 annually for doctoral students, for up to three years.

Budget 2007 introduced new measures, to help Canadians save by making Registered Education Savings Plans (RESPs) more attractive:

  • eliminating the $4,000 limit on annual contributions;
  • increasing the lifetime RESP contribution limit from $42,000 to $50,000; and
  • increasing the maximum Canada Education Savings Grant annual amount from $400 to $500.

For more information about Canada Student Loans, please visit: http://www.hrsdc.gc.ca/en/learning/canada_student_loan/index.shtml

Information Available from Service Canada

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Issue

Service Canada information about its range of services.

Fact

Service Canada informs Canadians about its services through an Annual Report Card, which includes facts and figures, and performance summaries.

For more information, please see the latest Annual Report Card at: http://www.servicecanada.gc.ca/en/about/reports/corp/arc/index.shtml

Elder Abuse Awareness / Seniors

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Issue

Helping seniors.

Fact

June 15, 2007, marked the second annual World Elder Abuse Awareness Day. This Day was first declared last year by the World Health Organization (WHO) and the International Network for the Prevention of Elder Abuse (INPEA). It is an opportunity for Canadians to come together to raise awareness about the abuse and neglect of older adults, and to speak with one voice against it.

The Government of Canada is committed to helping Canada’s seniors and to ensure that elder abuse, whether physical, emotional, verbal or financial, is addressed. In March, Secretary of State LeBreton, and Minister Solberg, and Clement announced the creation of the National Seniors Council to advise on the issues that matter to Canadian seniors. Secretary of State LeBreton has made raising awareness to combat elder abuse one of the first priorities of the National Seniors Council.

Budget 2007 announced the expansion of the New Horizons for Seniors Program by $10 million per year, from $25 million to $35 million. Some of this funding will be used to combat elder abuse and fraud, and invest in community programs and raise awareness.

The Government of Canada participates in the Federal-Provincial-Territorial Working Group on Safety and Security for Seniors. This group has developed materials to help promote awareness of abuse and neglect of older adults. These resources may be found on the Canadian Network for the Prevention of Elder Abuse's website at www.cnpea.ca.

For information on HRSD programs and services for seniors, please visit: http://www.hrsdc.gc.ca/en/corporate/seniors/index.shtml

(1) Source: Actuarial report of CSLP July 31, 2006. Table 7, page 21. (Represents new loan issue).

(2) Source: 2007 CSLP Client Satisfaction Survey was prepared for Canada Student Loans Program. Conducted by Les Etudes de Marché Créatec.

(3) Source: Auditor General report on CSLP, May 1, 2007.

Date Modified:  2007-11-02

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