Of all the things governments spend money on, support for people with severe disabilities who struggle to work is among the most obvious and important.
So, when the Liberal Party of Canada promised a new benefit for working-age people with disabilities during the 2021 election, many Canadians hoped that it could provide meaningful income support for this population. Bill C-22, which introduced the Canada Disability Benefit, received the unanimous support of all parties in the House of Commons.
Unfortunately, once the details were revealed in Budget 2024, the actual Canada Disability Benefit severely under-delivered its promise. The result is that the benefit barely moves the needle on support for one of Canada’s most underprivileged groups.
Let’s look at the data. Canadians with severe disabilities tend to live in poverty at a much higher rate than other Canadians. Statistics Canada data show that the median after-tax income for working-age Canadians with disabilities was $30,950 in 2020, about one-third less than the $46,080 that the median Canadian without disabilities took home that year.
Those with severe disabilities are two and a half times more likely to live in poverty: 18 percent versus 7 percent for those without disabilities. Most damning of all, people with disabilities are four times more likely to experience severe food insecurity. That means missing meals, reducing food consumption, or even going a day or more without food.
In a country like Canada with so much abundance, there really isn’t a good reason for this. Part of the problem is a lack of employment opportunities. Many people with disabilities face significant barriers to employment to the point that the employment rate for people with very severe disabilities is less than 30 percent, compared to nearly 80 percent for those without disabilities.
The Canada Disability Benefit, which the government started paying out last year, was an attempt to fill the gaps between provincial disability support programs and the needs of Canadians with disabilities.
The Canadian government has severely under-delivered on its promise of meaningful income support for working-age Canadians with disabilities. Despite unanimous support for the initial bill increasing support for the Canada Disability Benefit (CDB), Budget 2024 revealed a benefit of only $200 per month, which is insufficient to lift recipients out of poverty. There are disproportionately high rates of poverty and food insecurity among disabled Canadians due to employment barriers. The government has been “stingy” with this benefit, especially when contrasted with other spending. The government should either increase the benefit amount itself or transfer funds to provinces or support civil society organizations.
Is the Canada Disability Benefit's current amount sufficient to address poverty for disabled Canadians?
What are the potential benefits of the Canada Disability Benefit's 'phase-out tail' despite its low amount?
Beyond federal funding, what other approaches could improve support for disabled Canadians?
Comments (9)
The Canadian Disability Benefit has done nothing for those living in Alberta as AISH payments are clawed back by the equivalent. That, and the proposed changes to AISH and creation of the Alberta Disability Assistance Program (ADAP) are pushing already desperate disabled people further into poverty.