Ontario withholds clawback decision as application form for new disability benefit remains missing
Ontario has not confirmed whether it will claw back social assistance from recipients of the Canada Disability Benefit (CDB).
According to The Globe and Mail, the province says the federal government has not passed legislation to exempt the benefit from income tax treatment.
As reported by Employment and Social Development Canada, the application process for the new federal benefit is expected to open by the end of June.
However, no exact date has been provided, and as of late May, the application form is still unavailable.
According to advocates, the delay could result in eligible recipients missing out on the first $200 monthly payment when the program begins in July.
The CDB, announced in the 2024 federal budget under the Trudeau government, is set to provide up to $2,400 per year to low-income Canadians with disabilities.
The Department of Finance said that the government of Prime Minister Mark Carney remains committed to introducing a proposal to exclude the benefit from being treated as income under the Income Tax Act.
However, finance spokesperson Caroline Thériault stated legislation will be introduced “in due course.”
The Ministry of Children, Community and Social Services said Ontario is waiting for Ottawa to pass the exemption before making administrative changes to how CDB payments interact with the Ontario Disability Support Program (ODSP).
Ministry spokesperson Kristen Tedesco stated the province’s “focus is on ensuring the Canada Disability Benefit builds on existing programs like ODSP including amending the treatment of the benefit in the Federal Income Tax Act.”
The ministry did not clarify whether the province would claw back payments issued before the exemption is legislated.
Disability Without Poverty described the situation in Ontario as an “unknown factor.”
National director Rabia Khedr said the province has not clearly stated its approach.
All other provinces and territories—except Alberta and Ontario—have confirmed they will not reduce provincial assistance for those receiving the benefit.
Alberta has indicated it will reduce payments for recipients of the CDB.
According to the Plan Institute, a Burnaby-based non-profit, the lack of application details has hindered outreach efforts.
The institute has developed a website and offers one-on-one phone support to help people apply for the Disability Tax Credit (DTC), which is a prerequisite to receiving the CDB.
Executive director Stephanie Debisschop said in an e-mail, “without the release of the application form, we are unable to take the final step in ensuring people will begin receiving the CDB come July.”
To access the CDB, individuals must first qualify for the DTC—a non-refundable tax credit that is, as per advocates, difficult or impossible for many people with disabilities to obtain.
Non-profits across Canada have been assisting applicants with the DTC, but the uncertainty surrounding the CDB application continues to be a barrier.
Advocates and experts have also criticised the benefit’s limited amount.
At $200 per month, the CDB falls well below what many experts consider sufficient to reduce poverty levels among Canadians with disabilities.
Advocacy groups say the program’s design and lack of clarity have caused growing frustration among those it aims to support.
