e-5035 (Social affairs and equality)

The Government is currently working to implement the Canada Disability Benefit. The federal Budget 2024 provided funding of $6.1 billion over six years, beginning in 2024 to 2025, and $1.4 billion per year ongoing, to the Benefit. This was a historic first step to begin addressing the long-standing poverty amongst working age persons with disabilities.

1. In relation to Bill C-403, as all bills sponsored by private members, it is under the aegis of the procedures outlined in the Standing Orders of the House of Commons.

2. In relation to the potential automatic eligibility for the Canada Disability Benefit of people who are already receiving provincial or territorial disability supports, the Government prioritized the goal of maintaining integrity and equity between individuals across jurisdictions. Basing disability eligibility criteria on provincial or territorial benefits could potentially create gaps where someone would qualify for the benefit in one jurisdiction but not in another. This would go against the idea of the benefit being nationwide and would make it harder to smoothly transfer services if someone moves, for example. Furthermore, administering such a system, with different criteria and parameters that change over time in the provinces and territories, would greatly delay payment of the benefit.

In relation to automatic eligibility for those eligible for the Canada Pension Plan Disability pension, in addition to being a contributory program, CPP Disability is based on an individual being unable to work due to their disability. In contrast, eligibility for the DTC is based on the effects caused by one or more impairment(s) (resulting from a medical condition) in one or more of the following categories: walking, mental functions, dressing, feeding, eliminating, hearing, speaking, vision, and life-sustaining therapy. It is not based on an inability to work, to do housekeeping activities, or to engage in recreational activities. Although the effects may result in an inability to work, the CRA does not determine eligibility based on this factor. The DTC is a non-refundable tax credit that reduces the amount of tax one may have to pay. Persons with disabilities should apply for the DTC even if they do not have taxable income. Any unused portion of the DTC can be transferred to a supporting family member. Being approved for the DTC can provide access to other federal programs, such as the registered disability savings plan, the Canada workers benefit disability supplement, and the child disability benefit. Eligibility for the DTC is not connected to CPP disability benefits, QPP disability benefits, workers’ compensation benefits, or other types of disability or insurance benefits. There are many different disability programs available to Canadians, and each province and territory has different eligibility criteria for these programs. Disability information collected by provinces and territories is not shared with the CRA and similarly, the CRA does not share medical information with other departments or agencies.

Similarly, using CPP Disability as an automatic eligibility criterion for the CDB would, on the one hand, unfairly favour those with significant work experience over their counterparts with similar disabilities but lesser (or no) employment histories and, on the other hand, exclude persons with disabilities who are able to work but still live in poverty. 

3. In relation to the call to ensure the Canada Disability Benefit is tied to the individual’s income and not household income, income-tested benefits--such as the Guaranteed Income Supplement, Canada Child Benefit, provincial/territorial social assistance and now the Canada Disability Benefit--almost always use family income to calculate the amount of support a person needs. Spouses and partners who live together can share expenses (such as shelter and food costs). The Benefit is a poverty reduction measure; this means focusing on individuals and families with lower incomes, rather than families with relatively high incomes.

At the same time, the Government has heard clearly from the disability community that considering spousal/partner income when calculating benefits can leave persons with disabilities in a vulnerable position and interfere with their autonomy. Therefore, the Government has proposed to balance these two considerations by allowing couples to keep more of their income before their benefit begins to be reduced:

• if you receive the Benefit and your spouse/partner doesn't qualify for it, you would still be entitled to a Benefit amount until your combined income reaches $58,500;
• if you and your spouse/partner both receive the Benefit, you would still be entitled to a Benefit amount until your combined income reaches $70,500.

4. In relation to the call to increase the amount of the Canada Disability Benefit, as announced in Budget 2024, the Government aims to see the combined amount of federal and provincial or territorial income supports for persons with disabilities grow to the level of Old Age Security (OAS) and the Guaranteed Income Supplement (GIS), to fundamentally address the rates of poverty experienced by persons with disabilities.

5. In relation to potential clawbacks, the Government is working closely with provinces and territories to assess and address any potential interactions between the Canada Disability Benefit and their existing programs/benefits. Provinces and territories play a lead role in providing supports to persons with disabilities and will be critical to the success of the Canada Disability Benefit. The insurance industry is also being engaged on the question of potential interactions with the Canada Disability Benefit, with the objective of avoiding clawbacks. Note that, the provisions in private insurance contracts fall under provincial and territorial jurisdiction, and provinces and territories generally do not legislate detailed requirements with respect to the provisions of short- and long-term disability insurance contracts.

6. Last, in relation to the call to extend the Canada Disability Benefit eligibility beyond the age limit of 64 years, the purpose of the Canada Disability Benefit Act is to reduce poverty and to support the financial security of working-age persons with disabilities. Over the past decades, there have been important strides in reducing poverty among seniors. According to the 2022 Canadian Survey on Disability, 5.1% of seniors with disabilities had incomes below Canada’s Official Poverty Line in 2020; this was down from 9.5% in 2015 and is similar to the rate of poverty among seniors without disabilities in 2020 (3.9%). In contrast, working-age persons with disabilities are almost twice as likely to live in poverty compared to persons without disabilities. The CDB is intended to help bridge the gap between existing supports for children with disabilities and supports for seniors, such as the OAS pension and the GIS.