Ontario to Exempt Federal Disability Benefit from Clawbacks

Ontario Won’t Reduce Support for People Receiving New Federal Disability Benefit

The Ontario government has announced that it will not reduce provincial support for people who receive the new Canada Disability Benefit (CDB). This decision follows growing concern from people with disabilities and their advocates.

The Canada Disability Benefit became law in 2023, and the federal government added $6.1 billion to it in the 2024 budget. Starting in July, eligible Canadians with disabilities can get up to $200 per month, or $2,400 per year.

In a news release on Tuesday, the Ontario government said the new benefit will not count as income. This means it will not affect other payments, like the Ontario Disability Support Program (ODSP). In other words, people who get ODSP won’t have money taken away if they also get the CDB.

Disability advocates had worried that provinces might reduce their own support when the federal money starts coming in. Seven provinces and territories have already said they won’t do that. However, Alberta said it may still reduce payments in some cases.

“It was a big worry that the money wouldn’t reach the people who need it most,” said Ron Anicich, co-chair of the ODSP Action Coalition.

Advocates Feel Relieved but Still Have Worries

Rabia Khedr, head of Disability Without Poverty, said Alberta’s decision upset many people in the disability community. Still, she said Ontario has made good decisions in the past—like raising the amount ODSP recipients can earn before losing support from $200 to $1,000.

“I believed Ontario would do the right thing,” Khedr said. “I’m glad they confirmed that today.”

But she and other advocates are still worried about other parts of the program. To get the CDB, people must first be approved for the federal disability tax credit. That requires a doctor’s approval.

“There’s a rush now to sign up for the disability tax credit,” said Anicich. “That’s hard when many people don’t have a family doctor. Two million people in Ontario are in that situation.”

Khedr said it shouldn’t be this hard. “People who are already approved for ODSP have already shown they have a disability. They shouldn’t have to go through all that again,” she said.

Advocates are asking the federal government to make things easier. They want people on ODSP and similar programs to automatically qualify for the new federal benefit.

Ontario’s government agrees. A spokesperson said they want the federal government to change the rules so people on ODSP don’t have to go through the full application process again or pay any fees.

$200 a Month Not Enough, Say Advocates

While many are glad the CDB won’t be clawed back, they say $200 a month isn’t enough.

“People with disabilities in Ontario who get ODSP and the new federal benefit will still live below the poverty line,” said Khedr. “And having a disability costs even more—about 30% more than living without one.”

Khedr said the money will go toward important daily needs, like healthy food, painkillers, or anything that could help someone live better and maybe even look for work.

Both Khedr and Anicich also say people with disabilities need to be more involved in decisions about these programs.

“There’s nothing like lived experience,” said Khedr. “If the government includes us in the planning, we can help them get it right.”

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