AEBC Applauds Recent Ontario Announcement Exempting Canada Disability Benefit as Income

Ontario CDB recipients protected from benefit reductions

CANADA, June 2, 2025 /EINPresswire.com/ -- Recently, the Ontario government made an important announcement that guarantees that the Canada Disability Benefit (CDB) will supplement, not replace desperately needed provincial supports. The province is exempting the CDB as income, ensuring that recipients of the Ontario Disability Support Program (ODSP), Ontario Works (OW), and the Assistance for Children with Severe Disabilities (ACSD) program can receive this benefit without seeing a reduction in their existing provincial supports.

“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, in a press release.

AEBC applauds this move by the Ontario government, without which thousands of Ontarians with disabilities would have had their social assistance benefits clawed back, leaving them no better off.

“Canadians are already struggling with the cost of living, and those living with disabilities are disproportionately affected,” said Marcia Yale, President of AEBC.

To maximize the CDB’s impact, the federal government must follow suit. Currently, the CDB is considered taxable income. While some social assistance programs exempt certain unearned income, others may reduce benefits dollar-for-dollar when the CDB is received—undermining the purpose of the benefit and leaving some recipients no better off.

The 2024 Federal Fall Economic Statement proposed exempting CDB under the Income Tax Act, but this legislative change has not been made. With the first CDB payments scheduled for July, this change cannot wait for the next federal budget, which isn’t expected until later this year.

In addition to the immediate legislative change needed to ensure there are no clawbacks, the CDB must be strengthened to achieve its purpose of lifting people living with disabilities in Canada out of poverty. We urge the federal government to:
• Raise the benefit amount: A maximum of $200/month is not enough. The benefit must be increased to bring people with disabilities above the poverty line and ensure incremental increases to account for the full cost of living with a disability.
• Expand eligibility: The current requirement of a Disability Tax Credit certificate is a barrier. Eligibility should align with the Accessible Canada Act, with a simplified application process.

AEBC continues to call on the federal government to ensure the Canada Disability Benefit is adequate, accessible, and exempted from clawbacks—nationwide.

Marcia Yale, President
Alliance for Equality of Blind Canadians
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