OTTAWA – Concerns are mounting over the escalating costs and operational failures of Cúram, the federal government’s software system responsible for processing critical benefits including Old Age Security (OAS), Employment Insurance (EI), and the Canada Pension Plan (CPP). The system, initially projected to cost $1.75 billion in 2017, is now estimated to reach $6.6 billion – a nearly fourfold increase – prompting calls for a public inquiry.
The Bloc Québécois is leading the charge for greater scrutiny, with leader Yves-François Blanchet suggesting a formal investigation is necessary to pinpoint the source of the cost overruns and systemic issues. “I believe it is preferable to take Cúram out of the strictly partisan sphere to send it to an investigation which will allow us to establish where the errors are and how we correct them,” Blanchet stated following a meeting with Prime Minister Mark Carney on .
The financial implications are substantial. The current $6.6 billion price tag represents a 277% increase over the original budget. This dramatic escalation has raised alarm bells, particularly as the system struggles to function effectively. Reports indicate that thousands of seniors are currently experiencing delays or outright denials of pension payments due to “computer glitches” hindering file processing. A recent report highlighted that approximately 85,000 seniors across the country are currently without expected pension payments due to issues with the system.
The Cúram system’s problems are occurring against a backdrop of increasing financial strain on federal programs supporting the elderly. Elderly benefits, encompassing OAS and the Guaranteed Income Supplement (GIS), already constitute the largest and fastest-growing segment of the federal budget. Projections indicate that spending on these benefits will rise from $80 billion this year to $100 billion annually by , and this does not account for potential further increases stemming from the proposed 10% OAS hike currently being debated.
The debate surrounding Cúram extends beyond mere budgetary concerns. The Bloc Québécois has linked its support for the Liberal minority government to securing an increase in OAS payments for seniors aged 65 to 74. This move underscores a broader discussion about generational fairness in government spending. The Bloc argues that bolstering benefits for seniors is a priority, while others question the sustainability of such increases given the already significant financial burden of elderly benefits.
The situation highlights a critical tension in federal fiscal planning. Currently, the federal government allocates approximately 17% of its program spending to programs benefiting the elderly. This is a larger proportion than is allocated to programs specifically designed to support younger generations, such as Employment Insurance ($26.6 billion), the Canada Child Benefit ($28.1 billion), and the national childcare program ($6.6 billion). This disparity fuels arguments about equitable distribution of resources across different age cohorts.
The roots of the Cúram project’s difficulties trace back to at least , when a Treasury Board review flagged concerns regarding the project’s timeline and scope. The review recommended that Employment and Social Development Canada prioritize the urgent migration of outdated payment systems, some of which are between 20 and 60 years old. This suggests that the modernization effort was, from the outset, grappling with significant technical debt and the complexities of integrating new technology with legacy infrastructure.
Further scrutiny came from the Office of the Auditor General in , which expressed alarm over the escalating budget overruns. The initial estimate of $1.75 billion had already increased to $2.5 billion over a five-year period, and the Auditor General warned that further increases were likely. This foreshadowed the current $6.6 billion projection and underscored the systemic challenges plaguing the project.
The call for a public inquiry reflects a growing frustration with the lack of transparency surrounding the Cúram project. The Bloc Québécois hopes that an independent investigation will shed light on the factors contributing to the cost overruns and operational failures, and ultimately lead to a more effective and accountable system for delivering essential benefits to Canadians. The situation also raises broader questions about the government’s capacity to manage large-scale IT modernization projects and ensure the efficient and reliable delivery of critical social programs.
The ongoing debate over Cúram and OAS payments is likely to remain a central issue in Canadian politics in the coming months, as the government navigates the competing demands of fiscal responsibility, generational equity, and the need to provide adequate support for its aging population.
