For many years, the disability community has been speaking out about the need for a Canada Disability Benefit (CDB). Many people with disabilities don’t have enough money to live and are almost twice as likely to live in poverty than people without disabilities.
When the Canada Disability Benefit Act became law last year, we were hopeful. But when we saw the draft rules for the Benefit, we were very disappointed. Here’s why:
1) The Benefit Amount is Way Too Low
The government says people with disabilities could get up to $200 a month through the CDB – this is not enough to lift people with disabilities above the poverty line. People with disabilities often have extra costs in their daily lives, and this doesn’t begin to cover what’s needed to lift people out of poverty.
We think the CDB should be at least $1390 a month, not $200. It should also be in addition to someone’s provincial and territorial disability supports. This amount would be similar to what people already get from the Guaranteed Income Supplement (GIS) for seniors, which is a similar program meant to reduce poverty for seniors. $1390 would also include an extra 30% to cover the extra cost of living with a disability. The CDB should provide real support to lift people with disabilities out of poverty.
2) Eligibility Should Not be Tied to the Disability Tax Credit
Right now, you must qualify for the Disability Tax Credit (DTC) to get the CDB. This is a problem. The DTC application process is confusing, expensive, and difficult. Many people who need government support don’t qualify.
We think people should automatically qualify for the CDB if they already receive other disability-related benefits. This would make it easier for people to get the help they need.
3) It Should be Based on Individual Income, Not Household Income
Under the current draft CDB rules, the benefit amount would be based on household income, which includes the income of family members or a partner, not your individual income. This could mean some people won’t qualify for the benefit if they live with others who make money.
This could also be a problem for people in unsafe family situations. We think the CDB should be based only on individual income, no matter who someone lives with.
4) Income Limits and Working While Getting the Benefit
An income threshold is the maximum amount of money you can have before your benefit amount is reduced or stopped.
The amount of money a person can have and still qualify for the CDB is $23,000 a year for a single person and $32,500 a year for a couple. This is way too low – it is below the poverty line. This means that people’s benefit amount will start to be reduced before they even reach the poverty line. This defeats the very purpose of the CDB.
There is also a rule that lets people earn some money while still getting the CDB. However, this limit is only $10,000 for single people and $14,000 for couples before benefits are reduced. This makes it hard for people who can and want to work because they could lose their CDB benefits.
We think people should be able to make at least $35,000 before benefits are reduced.
5) Clawbacks Are a Major Concern
One of our biggest worries is that people might lose other benefits if they start getting the CDB. This would mean they are not better off, and the purpose of the CDB is to add to people’s income, not reduce it. The government must make sure people don’t lose any existing benefits because of the CDB. Provincial, territorial and federal governments must agree to not reduce their programs because of someone receiving the CDB.
What Needs to Change?
On July 1, 2024, the government shared the draft rules for the new CDB and asked for feedback. We worked hard to review these rules and sent our feedback to the government, asking for these changes:
- Increase the Benefit Amount: the CDB should be enough to help people with disabilities live above the poverty line.
- Broaden Eligibility: People should automatically get the CDB if they already receive other disability-related benefits.
- Individual Income, Not Household Income: The CDB should be based on a person’s own income, not the income of the people they live with.
- Raise the Income Threshold and the Working Income Exemption: These limits should be above the poverty line and take the real costs of living with a disability into account.
- No Clawbacks/ No reductions: The CDB should add to other benefits, not take them away.
We need a benefit that truly supports people with disabilities. This is a chance to make Canada fairer and more inclusive. Let’s make sure the Canada Disability Benefit lives up to its promise. The government must build a better disability benefit.
Click here to read our full feedback on the Canada Disability Benefit Regulations.
