A Christian think tank says Canada’s flagship disability benefit falls far short of lifting people with disabilities out of poverty, warning that the program’s size, eligibility rules and provincial clawbacks risk leaving millions no better off than before.
In a report released Jan. 6, Cardus, a nonpartisan research organization based in Ontario, said the Canada Disability Benefit — introduced last year with monthly payments of C$200 ($144) — is only a fraction of what is needed to close the poverty gap for Canadians with disabilities. While the benefit represents a step forward, the report said its current design fails to address persistent income insecurity, employment barriers and food insecurity affecting a significant share of the country’s disabled population.
It noted that more than one in four Canadians aged 15 or over — eight million people — had a verified disability in 2022.
“Canadians with disabilities, just like all Canadians, want to thrive,” said the Cardus report.
“Financial stability, meaningful work, and social connection are among the pillars of a fulfilling life. Yet, for too many Canadians with disabilities, these pillars are elusive.”
Income support programs have proven inadequate, labour market barriers persist, and social isolation is experienced far too often, according to the thinktank.
“The Canada Disability Benefit is a federal initiative that is fundamentally about the first of these pillars, has a direct impact on the second, and has an indirect impact on the third,” added the report.
“However, its scope and design have raised questions about how well it enhances the financial stability of Canadians with disabilities.”
The monthly benefit is inflation-indexed, meaning it will rise with the cost of living. It also contains a phase-out rate so that recipients can work and keep more of their earnings compared to provincial programs.
However, the current monthly payment is only a sixth of the amount suggested by the national parliamentary budget officer in Ottawa to close the poverty gap for people with disabilities.
Eligibility to receive the payment is also mired in a bureaucratic process by being tied to a Disability Tax Credit (DTC), requiring an expensive and complicated process to obtain a medical certificate to receive the benefit.
Another negative factor is provinces offsetting payments via clawbacks. Provinces such as Alberta can reduce local social assistance payments by C$200 ($144 USD), leaving the recipient of the national benefit in no better situation than before.
“While the Benefit represents a step forward, concerning gaps remain,” said the report.
“The challenges of insufficient benefit amounts, barriers tied to the Disability Tax Credit, and the risk of provincial clawbacks, among others, underscore the need for reform.”
18% of Canadians with severe disabilities live below the poverty line, more than double the rate (7%) of the non-disabled population. After-tax income is C$30,590 ($22,025) for those with severe disabilities compared to C$46,080 ($33,178) for non-disabled people.
Approximately 26.4% of Canadians with disabilities suffer food insecurity and for those with severe disabilities, the rate of those missing meals, known as severe food insecurity, is 15%, more than seven times the rate of Canadians without such disabilities.
The report also highlighted that just 30% of Canadians diagnosed with very severe disabilities are employed, although they have the potential ability to work with the right support.
“There are certainly some types of severe disabilities that exclude the person from traditional paid employment,” said the report. “But Statistics Canada data suggest that many Canadians with disabilities could work but currently do not.”
According to 2022 data, 42%of Canadians with disabilities aged 25–64 were not working but had “work potential.”
“Previous Cardus research has shown that most people with disabilities can work and want to work, yet face manifold barriers to employment,” said the Cardus report.
Barriers to working encountered by Canadians with disabilities include a “lack of workplace accommodations, vocational training, or the availability of work that can be done by people with severe disabilities, recruiters’ assumptions about what the person can and cannot do, and disability support systems that actively discourage work.”
In its report, Cardus outlined three potential pathways to reform the CDB for Canadians with disabilities.
Firstly, federal reform by doubling the current funding from C$1.6 billion ($1.15 billion) to C$3.2 billion ($2.3 billion) to increase the monthly payment. This amount is only a fraction in comparison to what the Canadian government spends on electric vehicle subsidies, which total C$31.4 billion ($22.6 billion), the report noted.
Secondly, sending the money to existing provincial programs helping people with disabilities, instead of the national federal benefit.
A third suggestion is increasing tax credits for donations to disabilities charities and supporting businesses in creating more accessible workplaces for people with disabilities.
“These options are exemplary of the roles of the different spheres of society, focusing as they do on the roles of the federal government, provincial governments, and businesses and charities,” concluded the report, adding that they also offer actionable steps to improve Canada’s disability support framework.
“As policymakers move forward, they should be attuned to how society’s institutions work together, and should prioritize policy reforms that, along with civil society, will assist Canadians with disabilities to live fulfilling lives rich with security, opportunity, and belonging.”
