After a long wait, the Canada Disability Benefit Act received royal assent on June 22, 2023, and officially became law. This development is considered a significant achievement for the disability advocacy community, representing a positive stride towards providing financial security and dignity to low income working-age people with disabilities. 

According to government data, more than 1.4 million Canadians with disabilities live in poverty. People with disabilities face a higher rate of unemployment, and individuals with more severe disabilities have  an approximate after-tax income of CA$12,520, which falls well below the poverty line.

At present, there is limited support for individuals with disabilities below the age of 65 at the federal level. This includes the Canada Pension Plan (CPP) Disability Benefit, which requires sufficient contributions to the CPP for approval, and the Disability Tax Credit, which reduces the individual's income tax obligations.

The introduction of this legislation establishes the framework for the Canada Disability Benefit, which will enable the federal government to create a new supplemental income benefit for individuals with disabilities between the ages of 18 and 64. The Canada Disability Benefit will supplement existing federal and provincial disability supports. Consequently, individuals who currently receive Assured Income for the Severely Handicapped in Alberta or support from the Ontario Disability Support Program in Ontario will continue receiving those benefits. In addition, they will also receive supplemental benefits from the Canada Disability Benefit on top of their provincial benefits.

Although the specific eligibility criteria for receiving the Canada Disability Benefit are yet to be determined and will be outlined in forthcoming regulations, the passing of the Act represents a significant milestone.

If you or a loved one are living with disabilities, please contact the author, Harkirat Teja, to discuss the Canada Disability Benefit Act and how it can benefit you.