Last updated: June 22 2022

Disability Income Supplement: New Income Source for Those Under 65?

Beth Graddon

After spending close to $12 million to reform government processes and rollout new federal disability programming, the government reintroduced legislation to create the New Canada Disability Benefit (CDB) on June 2.  It is meant for those under age 65, but it is unclear when this new income-tested source will actually be in the hands of the disabled and in what amounts. Here is what we know so far:

The rollout of the bill, which passed its first reading on June 2, is designed to provide Canadians with disabilities more opportunity for social and economic inclusion. Over 1 million Canadians with disabilities live in poverty and people with disabilities have a higher rate of unemployment.
Those with more severe disabilities had an after-tax income of just $12,520, well below the poverty line. Furthermore, the costs of specialized equipment, custom supports for cars or homes, and medical procedures adds to the financial burdens of Canadians with disabilities.

The Canada Disability Benefit has been proposed as a direct monthly payment for eligible low-income Canadians aged 18-64. Once implemented this new benefit will reduce poverty among persons with disabilities in the same manner as the Guaranteed Income Supplement and the Canada Child Benefit.

Knowledge Bureau Report will keep you in the loop with further details as they become available.

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