Source: https://www.gazette.gc.ca/rp-pr/p1/2024/2024-06-29/html/reg2-eng.html

The proposed new Canada Disability Benefit Act (CDBA) is aimed to reduce poverty and address the financial needs of working-age individuals with disabilities, who are more likely to experience poverty and financial insecurity compared to those without disabilities. The CDBA was intended to offer sufficient financial support to lift eligible individuals with disabilities out of poverty. However, in its current form, the CDBA fails to deliver the necessary economic relief to achieve this goal.

The proposed regulations of the CDBA define eligibility and entitlement amounts. Specifically, individuals with prolonged and severe disabilities, as defined by the Income Tax Act, who are of low income and working age, are entitled to this benefit. The government asserts that the CDBA is not meant to serve as “income replacement.” However, in its current form, it does not even meet the criteria for a top-up benefit as initially promised.

According to the Canada Gazette on June 29th, 2024, the eligibility criteria for the benefit is as follows:

  • Between the ages of 18 and 64
  • Eligible for the Disability Tax Credit
  • A resident of Canada (Income Tax Act)
  • A Canadian Citizen or permanent resident, or temporary resident (previous 18 months), or a protected person (Immigration Protection Act) or an individual who falls under the Indian Act
  • Not be currently incarcerated for two years or more (federal)
  • Have filed an income tax and benefit return current tax year

At this time the application process is not established and will fall on Service Canada to implement.

A monthly benefit amount will be calculated based on the following factors:

  • Income (based on the previous year’s income)
  • Maximum amount ($200 a month/$2,400 a year)
  • Income thresholds ($23,000 single and $32,500 couple living together)
  • Allowable Working income exemptions ($10,000/year individual or $14,000/ year couple)
  • Reduction rates (amount deducted 20 cents from benefit if earning above threshold)
  • Indexation for inflation

There is a framework for requesting reconsideration regarding eligibility for the benefit, its amount, and an appeal process involving the Social Security Tribunal. Additionally, proposed regulations include administrative monetary penalties and summary criminal offences for false statements and fraudulent applications.

The Canadian Gazette reported significant input from the disability community between August 2023 and January 4, 2024, through roundtables, meetings, and online engagement tools. The government noted that over 8,000 Canadians participated in the first phase of engagement from August 2023 to February 2024.

Despite being informed by the Ministry of Social Development that it would be included in and informed about public engagement efforts; Fibromyalgia Association Canada (FAC) was not involved. FAC received no communication from the Ministry.

FAC is concerned that the government is only offering two hundred dollars per month, falling short of the promise to lift people with disabilities out of poverty. Additionally, there is no mention of preventing claw backs. FAC is disappointed and frustrated by how long the development of this benefit has taken, with implementation not expected until July 2025. People with disabilities deserve better!

FAC will start advocating for higher benefit amounts. Every Canadian deserves a guaranteed livable income!