The Canada Disability Benefits (CDB) is a new federal program designed to provide direct financial support to low-income working-age Canadians with disabilities. The initiative is a cornerstone of the government’s Disability Inclusion Action Plan and aims to address the persistent economic challenges faced by persons with disabilities, who are more likely to live in poverty due to barriers in employment and social exclusion. The benefit, administered by Service Canada, offers up to $200 per month, totaling $2,400 annually, to eligible individuals between the ages of 18 and 64 who already qualify for the Disability Tax Credit (DTC).
Eligibility and Application Process
To qualify for the CDB, applicants must:
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Be aged 18 to 64
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Have a valid Disability Tax Credit (DTC) certificate
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Be a Canadian resident for tax purposes (including citizens, permanent residents, temporary residents with 18+ months in Canada, and refugees)
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Meet income thresholds: Single individuals with total incomes below $23,000 are eligible for the full benefit, while those in a couple can have combined family income up to $32,500 for maximum benefit4.
Applications are now open, and those who apply and are approved by June 30, 2025, will start receiving payments in July 2025. Payments will be issued the month after approval, and back payments will be provided for those approved after July but eligible since June 2025.
How the Benefit Works
The CDB is structured to supplement, not replace, existing provincial and territorial income support programs. Importantly, all provinces and territories except Alberta have pledged not to claw back their own benefits as a result of the CDB. Alberta continues to deduct the CDB from its Assured Income for the Severely Handicapped (AISH) payments, which has drawn criticism from advocates.
The benefit amount is phased out for individuals and couples with higher incomes. There is an earnings exemption of $10,000 per year for individuals and $14,000 per year for couples, allowing for a higher income threshold before benefits are reduced. The benefit is reduced by 20 cents for every dollar above the threshold, phasing out completely at $35,000 for individuals and $44,500 for couples.
Impact and Criticism
The CDB is expected to benefit over 600,000 low-income Canadians with disabilities. However, many advocates argue that the $200 per month payment is insufficient to meaningfully address poverty among people with disabilities. Minister of Jobs and Families Patty Hajdu acknowledges these concerns but emphasizes that the benefit is intended to provide additional flexibility and autonomy, not to fully sustain individuals.
“I don’t think that disability (benefit) is what a person needs to sustain themselves, and I don’t think it was designed in that way,” Hajdu said in a recent interview. “But it is a payment that allows for a fuller autonomy of people with disabilities in that it’s not directed towards any specific thing. It is a benefit that people can use to supplement whatever other earnings or income that they have.”
Support for Applicants
Recognizing that the application process may be challenging for some, the government is funding community organizations to provide guidance and support for those seeking the DTC or applying for the CDB. This initiative aims to ensure that all eligible individuals can access the benefit, regardless of their circumstances.
Policy and Advocacy
The CDB was first announced in 2020, with framework legislation receiving royal assent in June 2023. The benefit design was released in Budget 2024 and finalized in the Canada Gazette in June 2024. The federal government has called on provinces and territories to ensure that the CDB does not result in clawbacks of other benefits, and advocacy groups continue to push for full protection of the benefit across the country.
Canada Disability Benefit Scheme Data Table
| Feature | Details |
|---|---|
| Name | Canada Disability Benefit (CDB) |
| Administered by | Service Canada |
| Eligibility Age | 18–64 years |
| Required Certification | Disability Tax Credit (DTC) certificate |
| Maximum Benefit | $200/month ($2,400/year) |
| Income Thresholds | Single: <$23,000; Couple: <$32,500 (full benefit) |
| Earnings Exemption | Single: $10,000/year; Couple: $14,000/year |
| Phase-out Rate | 20% (reduced by 20 cents per dollar above threshold) |
| Phase-out Complete | Single: $35,000; Couple: $44,500 |
| Application Open Date | June 2025 |
| First Payment Month | July 2025 |
| Estimated Beneficiaries | 600,000+ |
| Clawback Policy | All provinces/territories except Alberta (no clawbacks elsewhere) |
| Official Link | [Canada Disability Benefit – Government of Canada |
Frequently Asked Questions (FAQs)
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Who is eligible for the Canada Disability Benefit?
Canadians aged 18–64 with a valid Disability Tax Credit certificate who meet income requirements are eligible. -
How much is the benefit?
The maximum benefit is $200 per month ($2,400 per year). -
Will the benefit affect my other provincial payments?
No, except in Alberta, where the CDB will be deducted from AISH payments.
The Canada Disability Benefit represents a significant step forward in Canada’s commitment to supporting persons with disabilities. While the benefit may not fully address poverty for all recipients, it provides a much-needed supplement to existing supports and offers greater financial autonomy. With applications now open and payments beginning in July 2025, eligible Canadians are encouraged to apply and access this new resource.