Canada Disability Benefit: Respond by December 21

Canadians of working age who live in poverty because of a disability have been awaiting the Canada Disability Benefit since 2020.  The Canada Disability Benefit Act was passed into law on June 22, 2023 and the next step to income is a consultation period that ends December 21. The eight topics are the government wants to know more about describes what’s in the legislation and provides an overview of what disabled people and their families can expect from the benefit.

The criteria under discussion includes the following:

1. Eligibility
2. Benefit amount
3. Applications and payments
4. Administration
5. Reconsiderations and appeals
6. Compliance and enforcement
7. Best practices or tools
8. General Comments

With regard to eligibility the CDB will be available to residents of Canada who are of “working-age”, and who have a disability that meets the government’s assessment criteria.

Age Criteria.  The CDB is being designed to fill the gap in support between eligibility for the Child Disability Benefit (for children with disabilities under age 18) and Old Age Security and the Guaranteed Income Supplement (for people aged 65 and older). The goals is to reduce poverty and support the financial security of working-age people with disabilities between the ages of 18 to 64.

Disability Criteria.  Three such factors will be considered:  the severity of the disability (increasing severity increases poverty), the ability to work and the activities of daily living that are affected by the disability.

With regard to the amount of the benefit, and its frequency (potentially monthly)  it appears that it will be based on family net income when the disabled recipient lives with spouse.  Specifically the government is seeking commentary about these intended markers for setting the amount of the disability:

• Canada’s Official Poverty Line;
• the extra costs of living for people with disabilities;
• barriers to employment experienced by people with disabilities;
• the diversity of people with disabilities; and,
• Canada’s human rights commitments.

It goes on to say that the regulations may specify:

• a maximum amount
• income thresholds (income testing)
• reduction rates (where a benefit decreases as income increases), or
• exemptions for a certain amount of earnings
• whether the benefit will be indexed to inflation
• whether it will be possible to apply for retroactive benefits and for how long (For example, Old Age Security and Guaranteed Income Supplement benefits may be paid retroactively for up to 11 months from the date the Government receives an application.
• Whether the government can recover overpayments
• Whether someone can apply on the disabled person’s behalf
• What happens when the recipient dies
• What happens when there is an audit and penalties for fraud
• Whether there are any appeal rights

It then goes on to explain these markers in more detail; enough to craft a form or worksheet for calculation and provide an opportunity to make comments about best practices: 

“Maximum benefit amount: This is the highest amount that someone could receive. If the benefit is tied to income, someone could receive less than the maximum if they have other sources of income.

Income threshold: This is the amount of employment or social assistance income a beneficiary can have before the size of their benefit is reduced. Such an amount is also known as a general income exemption.

Reduction rate: This reduces the size of the benefit as income levels increase; the lower their income, the more money the beneficiary will receive. This helps ensure that people with low incomes are the ones who get the most money.

Earnings exemption: This allows a certain amount of employment or self-employment income to be exempt from the income testing of the benefit. Some programs use this to reduce barriers to work. This exemption could be considered in addition to a general income exemption.

Indexation: Inflation is an increase in the general price level of goods and services in the economy. A benefit that is indexed to inflation increases when inflation goes up. The federal government uses the Consumer Price Index to adjust (index) benefits. Some benefits are adjusted once a year, such as the Canada Child Benefit. Some are adjusted every 3 months, such as the Old Age Security and Guaranteed Income Supplement benefits.

Calculating income. The regulations may specify how income will be calculated. For example, if an applicant has a partner or spouse who lives with them, the amount may be based on their combined income. This is common for income-tested benefits. It helps ensure the benefit goes only to those who need it most. (The incomes of other members of the household, such as parents, adult children, or siblings, are not usually used in these calculations.)”

Make a Difference.  The questionnaire will take some time to read and digest but will be of particular interest to tax and financial professionals who will help people with disabilities apply for the benefit when it is available.  For response, go online or use one of several other options:

• By phone: Call 1-833-390-4065 and leave a message
• By email: CDB@hrsdc.gc.ca link open in a new window
• By video relay: Send an email to the address above and write “Sign language response” in the subject line. The government will contact you to set a date and time to provide your comments.
• By video: Use the email above to send a link to a recorded video of your comments.
• Create a transcript: Contact the government by any of the methods listed and it will  arrange for you to speak to someone who will transcribe your input and submit it s.
• By mail:

Consultation, Canada Disability Benefit Regulations

c/o Office for Disability Issues

Employment and Social Development Canada

105, rue de l’Hôtel de ville, 1st floor, Bag 62

Gatineau QC K1A 0J9

• Alternate formats:  Contact the government using any of the methods listed above for a copy of the tool in a Word document.  The tool is also available in alternate formats on request.