Issues: The Government of Canada, under the framework of the Canada Disability Benefit Act, has committed to reduce poverty and support the financial and social security of working-age persons with disabilities, who are twice as likely to live in poverty and financial insecurity as compared to persons without disabilities. Proposed new Canada Disability Benefit Regulations (the Regulations) would introduce a new income-tested benefit — the Canada Disability Benefit (the Benefit) — enabling annual financial support to eligible persons with disabilities. The proposed Regulations establish the parameters for the Benefit, such as eligibility criteria, the Benefit amount and how it will be calculated.
Description: As set out in the proposed Regulations, the Benefit would provide low- and modest-income working-age individuals with severe and prolonged disabilities (as set out in the Income Tax Act) with a yearly maximum of $2,400 in financial support, indexed to inflation. They also establish how payments will be made and the role of representatives of a person that is incapable, as well as administrative processes, such as changes to or reconsiderations of decisions, appeals, fixing administrative errors, authorities to verify compliance, offences, administrative monetary penalties, and the recovery of overpayments and debts. An amendment to the Social Security Tribunal Regulations, 2022, relating to appeals under the Canada Disability Benefit Act is also included in this regulatory proposal. The Benefit is designed as a social benefit and is not intended to be an income replacement benefit.
Rationale: Under the Canada Disability Benefit Act, the Governor in Council must make regulations by June 2025 that would enable the Benefit to be paid. The proposed Regulations set out key details that would enable the Government of Canada to administer the Benefit and begin making payments. Over 10 years, beginning in fiscal 2025–26, the estimated costs of this proposal are $525,605,679 million in present value (PV). These costs are expected to be offset by qualitative gains in well-being that come from poverty reduction and improved financial security. The value of the Canada Disability Benefit itself is not accounted for in the monetized analysis because for cost benefit analysis purposes it is treated as a transfer from the Government of Canada to Canadians.
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