Did you know only 59% of Canadians with disabilities aged 25 to 64 are employed compared to 80% of those without disabilities?1 Additionally, those with disabilities are twice as likely to live in poverty compared to those without disabilities. Working Canadians with mild disabilities earn 12% less on average than Canadians without disabilities, and those with more severe disabilities earn 51% less.
These statistics highlight the challenges that many working-aged Canadians with disabilities face. This information also helped prompt the government to introduce Bill C-22, the Canada Disability Benefit Act, in June 2022. In June 2023, the disability benefit received royal assent, turning it into a law.
The purpose of the Canada Disability Benefit is to improve the financial security of working-age persons with disabilities. The goal is to create a monthly benefit that is modelled after the Guaranteed Income Supplement, which provides a monthly payment to eligible Canadians 65 and over.
Who is Eligible for the Canada Disability Benefit?
While the Canada Disability Benefits Act officially became law in June 2023, the details, including eligibility requirements and benefit rates, haven’t been announced. The federal government has a year to work out the details of this benefit before the Act is set to “come into force” in June 2024.
Based on the information that has been released, to qualify for disability payments you need to be between the age of 18 to 64, live below the poverty line, and be diagnosed with a disability.2
How Much Can You Get With The Canada Disability Benefit?
While the details of the Canada Disability Benefit are still being worked out, there are some factors that will be taken into consideration when the government decides the monthly benefit payments. These factors include:2
- The Official Poverty Line (as defined in the Poverty Reduction Act)
- Additional costs associated with living with a disability
- Challenges faced by those living with a disability when it comes to earning an income from work
- Intersectional needs of disadvantaged individuals and groups
- Canada’s international human rights obligations
Other Benefits For Canadians With Disabilities
The Canada Disability Benefits Act is an exciting achievement for working-age Canadians living with disabilities. While there are other benefits available to Canadians with disabilities, many of them are for people over age 60, students, veterans, and children.
Canada Pension Plan (CPP) Disabilities Benefits
The Canada Pension Plan disability benefit provides monthly payments to Canadians that meet the following eligibility criteria:
- Under 65 years old
- Contributed to the Canada Pension Plan
- Have a mental or physical disability that prevents you from doing any type of substantially gainful work
- Have a long-term disability that may never end or is likely to result in death.
The maximum monthly amount for the CPP disability benefit in 2023 is $1,538.67.3 As of 2019, CPP enhancement payments were introduced. Enhancements cause the monthly disability amount to increase each month. For instance, in January 2023 the maximum benefit is $1,538.67 and increases to $1,546.05 by December 2023.
The maximum amount is assessed annually and adjusted to reflect the cost of living changes. If the cost of living goes down, your benefit will not decrease.
Canada Pension Plan Post-Retirement Disability Benefit
Those already receiving the CPP retirement pension might also be eligible for the CPP post-retirement disability benefit if:
- Age 60 to 65
- Contributed enough to CPP
- Have a mental or physical disability that prevents you from doing any type of substantially gainful work
- Have a long-term disability that may never end or is likely to result in death.
- Have received the CPP retirement pension for more than 15 months or become disabled after starting to receive your pension
The maximum monthly benefit amount for the CPP post-retirement disability benefit in 2023 is $558.74.3
CPP Children’s Benefit
If you get the disability benefit, your dependent children might qualify for CPP children’s benefits. This is also true for dependents of CPP contributors who have passed away. To qualify, the child must be:
- Under 18 years OR
- Between 18 and 25 years and attending full-time school
The child must also be:
- The natural child of the CPP contributor
- A child “legally” adopted or “in fact” by the contributor while under the age of 21
- A child “legally” or “in fact” living with and in the custody of the contributor while under 21
The monthly benefit is a flat rate that is adjusted yearly. In 2023, the rate is $281.72 per month.3
Quebec Pension Plan Disability Benefit
If you live in Quebec, you won’t apply for the CPP disability benefit. Instead, you can apply for the Quebec Pension Plan Disability Benefit if one of the following applies to you:
- Have only worked in Quebec
- Currently live in Quebec and have worked both in the province of Quebec and another province or territory
- Worked in Quebec, currently live outside of Canada, and Quebec was the last province you lived in
Education Funding
The Canadian government provides various grants and student loan programs for students with disabilities. Funding includes:
- Grants for students with permanent disabilities. Funding for students with permanent disabilities enrolled in a designated post-secondary institution. Students can receive up to $2,800 per year for the 2023 to 2024 school year.
- Grants for services and equipment for students with permanent disabilities. This grant helps to cover tuition, textbooks, and accommodations at a designated school. Students can receive up to $20,000 per school year.
- Severe permanent disability benefit. Available to help those with a severe permanent disability who aren’t able to repay their Canada Student Loans. With this program, you can apply to have your debt cancelled.
Disability Tax Credit (DTC)
The disability tax credit helps people with a disability and their families reduce the amount of income tax they have to pay. The purpose of this benefit is to try and offset some of the costs associated with the impairment.
If you have an impairment, you will need to meet with a doctor and have them certify your impairment to see if you are approved. You can apply for DTC at any time of the year.
Registered Disability Savings Plan (RDSP)
The Registered Disability Savings Plan is designed to help those living with disabilities save for the future. When you open an RDSP, you may also get government grants and bonds to help with long-term savings.
To open an RDSP, the beneficiary (the person who will receive the money in the future) must meet the following criteria:
- Be approved for the Disability Tax Credit
- Apply before December 31 of the year they turn 59
- Resident of Canada
- Have a Social Insurance Number (SIN)
How much you are eligible for in government grants and bonds depends on your family income and how much you contribute to the RDSP.
Disability Benefits For Veterans
If you were disabled or injured while serving, you might be eligible for the disability benefit for veterans. To qualify you must be one of the following:
- Canada Armed Forces
- Royal Canadian Mounted Police (RCMP)
- Second World War or Korean War
- Certain civilians in the Second World War
You also have to have a diagnosed disability or medical condition and the ability to show that it is linked to your service.
Federal Excise Gasoline Tax Refund Program
If you have a permanent mobility impairment and can’t use public transportation safely, you might be able to get a refund on some of the taxes you pay for gasoline. You must have a qualified medical practitioner certify your impairment before you can apply for a refund.
Looking Towards a Better Future With The Disability Benefit Act
There are 6.2 million people living with disabilities in Canada. Of these millions of people, 23% live in poverty.4 While there are federal, provincial, and territorial supports in place for people with disabilities, there are few that focus specifically on working-age Canadians. Hopefully, the Canada Disability Benefit Act does what it sets out to do, and pulls working-age Canadians with disabilities out of poverty.
References:
- Government of Canada. Government of Canada reintroduces legislation to create a new Canada Disability Benefit. Accessed October 2, 2023.
- Parliament of Canada. Bill C-22. Accessed October 2, 2023.
- Government of Canada. Canada Pension Plan disability benefits. Accessed October 2, 2023.
- Government of Canada. Landmark Canada Disability Benefit legislation receives royal assent. Accessed October 2, 2023.
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