The program designed to help people affected by Canada’s 7.1 per cent total unemployment rate is tightening its guidelines, according to a report from the federal government’s spending watchdog. While these guidelines are changing, government groups are developing new systems to try and find ways to prevent overpayment and fraud. More than $578 million in employment insurance over-payments or ineligible payments went out last year, and according to a recent report from the Auditor General of Canada, only about $295 million are anticipated in repayments.

The Department of Human Resources and Skills Development Canada (HRSDC) is responsible for employment insurance benefits and currently, they are working on a plan to not only get a return on over-payments already made, but also to prevent them in the future. Applicants receiving employment insurance receive 55 per cent of their yearly income, as determined by their records of employment.The former HRSDC minister and MP Diane Finley released the department’s plans for reform in April of this year outlining how the program will continue to improve its efficiency and timeliness when granting EI benefits to applicants in need.

Currently, over-payments account for about 5 per cent of all of the funds that employment insurance puts out throughout the year, with a total spend of $16.8 billion in benefits payments in the 2011-2012 year. In order to lessen potential loss to Employment insurance benefits, Auditor General Michael Ferguson, asks the department to use more of its available information to help in identifying over-payments.

The priority of the Human Resources and Skills Development department is to continue to offer relief to people affected by unemployment, with efforts focusing on limiting the chance for over-payments and fraud.

Investigator manual leaked

After a manual for investigators of EI responsible for detecting fraud was leaked in February, Finley faced questioning in the House of Commons, stating that what were reported as quotas to find $500,000 in fraud payments detected annually, were only targets. Since the leak, the NDP has been arguing against the Conservative methods of finding ineligible EI claims, stating that the audits as part of a new pilot program to seek out fraud including knocking on doors and checking personal documents. This pilot program has been met with a lot of scrutiny from government opposition as well as from Canadians. The program is not confirmed by the government and is not outlined in the HRDSC’s plan for reform. “The Conservatives have launched a witch-hunt against unemployed Canadians – sending EI inspectors on house calls and forcing investigators to meet quotas for cutting people off of their benefits,” said Heather Finn, a spokesperson for MP Chris Charlton.

Part of the new plans for the development of the program is focusing efforts on detecting and preventing fraud, while still providing benefits to those in need. As the NDP and the Conservatives argue over what is fraud and what is a mistake, it shows that the system for paying EI benefits is not perfect yet. While the NDP insist that providing staff to help applicants fill out paperwork correctly is the answer, the Conservatives are cutting staff and moving employment records online.

Workforce under change

In a March 4th, 2013 question period in the House of Commons, MP Diane Finley told the Speaker of the House about Service Canada’s responsibility to stop any and all irresponsible claims. Also in her 2013-14 report plan outline, the importance of efficiency and fast response to claims is outlined, but as of May 31, 2013 the government issued notices that 21,734 members of the Public Service Alliance of Canada that they might lose their jobs in the next three years. The Conservative party is continuing in efforts to make faster approval of employment insurance applications, while also catching over-payments and fraud before they can happen. At the same time, they are investing in a computer-based approval system, to streamline the process and put out more resources without having to hire on more staff.

3863 of the public service workers that were issued work force amendment notices were employees in the Human Resources and Skills Development department. “The Department (HRDSC) is the hardest hit by ‘affected’ notices with 3863 positions potentially on the block,” said Heather Finn via email.

Technological Improvements

Technology is a big part of the department’s moves to online, and faster response time, with new system to be used by both employers and employees. The audit report shows that the department already uses automated programs, and with the new online format, more information will be available for assessments. At the moment, no new information is available about the status of employment insurance or the department since May 31, but according to Heather Finn, cuts to processing staff has slowed down the processing of EI claims.

Diane Finley’s office was unavailable for reply, but in the HRDSC’s report for the coming year, a new automated system of processing applications is discussed. The system will take the employment records necessary for an online EI claim, and use it to help employers keep more accurate records of their weekly payroll and employee hours. The plan for the improvements to be made to the department is estimated for June 30, 2014.