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.