
Province exempting Canada Disability Benefit as income to protect recipients from benefit reductions
The Ontario government intends to exempt the Canada Disability Benefit (CDB) as income so that social assistance recipients would receive the benefit without seeing a reduction in their provincial social assistance payments or entitlements. The changes would help recipients of the Ontario Disability Support Program (ODSP), Ontario Works and the Assistance for Children with Severe Disabilities (ACSD) program receive their maximum entitlements.
“In a time of unprecedented economic uncertainty brought on by U.S. tariffs and trade barriers, our government is taking action to keep costs down and protect Ontario families,” said Michael Parsa, Minister of Children, Community and Social Services. “This starts with safeguarding our most vulnerable, which is why we are exempting the Canada Disability Benefit as income so people who rely on social assistance receive the benefit without seeing any reductions in their social assistance payments.”
The CDB offers up to $200 each month ($2,400 each year) for eligible low-income, working-age Canadians with disabilities. By exempting the CDB, social assistance recipients will be able to fully benefit from the new program. Today’s announcement furthers Ontario’s commitment to protect families by building a more effective and efficient social assistance system that supports those who need it most.
This change would build on work the government has done to strengthen social assistance, such as tying ODSP and ACSD rates to inflation and increasing the earnings exemption for people with a disability receiving ODSP. Ontario continues to call on the federal government to amend its Income Tax Act so this new benefit has the broadest possible reach.
Quick Facts
- Ontario also fully exempts financial supports for veterans through the Soldiers’ Aid Commission under ODSP and Ontario Works, and continues to support Truth and Reconciliation efforts with exemptions specifically for Indigenous persons who receive social assistance.
- ODSP rates and the maximum monthly ACSD payment are now tied to inflation. The next inflation-based rate increase will take place this July. Since September 2022, the government has increased social assistance disability payments by almost 17 per cent.
- Ontario has increased the earnings exemption for a person with a disability receiving ODSP. An individual can now earn up to $1,000 a month through employment without it affecting their income support, benefits or eligibility.
- In addition to financial support, Ontario Works recipients receive employment supports through Employment Ontario to help people get the training, skills and experience they need to find and keep a job. These supports include workshops for resume writing, job counselling, job-specific training and basic education.
- Information about the Canada Disability Benefit, including eligibility and how to apply for the benefit, is available at the Government of Canada’s website.