Disability Benefit Based Only On Personal Income

Summary#

This bill changes the Canada Disability Benefit Act to make eligibility and benefit amounts based only on the applicant’s own income. It forbids the federal government from using a person’s marital status, household income, or receipt of a provincial disability benefit to deny or reduce the Canada Disability Benefit (CDB) (C-422, s.1; CDBA s.4(2)). It also requires regulations to use only the applicant’s income, not household income, when setting rules and amounts (C-422, s.2; CDBA s.11(1.01)).

• No spousal or household means test for the CDB; only the applicant’s income can be used (C-422, s.2; CDBA s.11(1.01)).
• Marital status cannot reduce or cut off the CDB (C-422, s.1; CDBA s.4(2)).
• Receiving a provincial or territorial disability benefit cannot reduce or cut off the CDB (C-422, s.1; CDBA s.4(2)).
• The bill does not set the dollar amount of the CDB or who qualifies; those still come from regulations under the Act (CDBA s.11(1)(a)-(c)).

What it means for you#

• Households

  • If you live with a spouse or partner who has higher income, their income would no longer affect your CDB eligibility or amount. Only your own income would count (C-422, s.2; CDBA s.11(1.01)).
  • Getting married, divorced, or separated would not change your CDB eligibility or amount by itself (C-422, s.1; CDBA s.4(2)).

• People with disabilities (applicants and recipients)

  • If you receive a provincial or territorial disability benefit (for example, ODSP, AISH, PWD, etc.), that cannot be used to deny or reduce your CDB (C-422, s.1; CDBA s.4(2)).
  • When you apply, you would need to report your own income. You would not need to report your household’s income for CDB purposes (C-422, s.2; CDBA s.11(1.01)).
  • The amount you can get, and other rules, will still be set by federal regulations. This bill limits which factors those regulations can use (CDBA s.11(1)(a)-(c); C-422, s.2).

• Administrators and service providers

  • Federal regulations and forms would need to be written and run using individual income only. They could not use household income or marital status to deny or reduce the benefit (C-422, s.2; CDBA s.11(1.01); C-422, s.1; CDBA s.4(2)).

• Timing

  • The bill does not include a separate start date. If enacted, these rules would apply when the Act is in force and regulations are made or updated to comply. Data unavailable on implementation timelines in regulations.

Expenses#

Estimated net cost: Data unavailable.

• No fiscal note or official cost estimate identified for this bill. Data unavailable.
• The bill makes no appropriation and creates no new fees or taxes. It changes eligibility and calculation rules for an existing program authorized by the Act (C-422, ss.1–2; CDBA s.11).
• Directional effects:
  • Removing household-income tests and prohibiting reductions based on provincial disability benefits could increase federal CDB payments compared with a design that used those factors. Magnitude depends on future regulations and take-up. Data unavailable.
  • Administrative costs to revise regulations, systems, and forms are likely, but no figures are published. Data unavailable.

Proponents' View#

• Improves fairness by ending “marriage penalties” and spousal means tests; eligibility and amounts would be based on the person’s own income (C-422, s.1–2).
• Prevents clawbacks (reductions) because someone already receives a provincial disability benefit, allowing the federal CDB to stack with provincial support (C-422, s.1; CDBA s.4(2)).
• Provides clear guardrails for regulations so the federal program cannot later shift to household-income testing (C-422, s.2; CDBA s.11(1.01)).
• Simplifies applications for people with disabilities by focusing on their own income, not their household’s situation (C-422, s.2).
• Reduces the risk that changes in marital status will unexpectedly change benefit amounts (C-422, s.1).

Opponents' View#

• May increase federal costs because more people in higher-income households could qualify or receive higher amounts when only individual income is counted (C-422, s.2). No cost estimate is available. Assumption noted.
• Could reduce targeting; two households with similar total resources might receive different support if one member qualifies based only on personal income (C-422, s.2). Assumption noted.
• Limits coordination with provinces and territories by barring federal reductions when a person already gets a provincial disability benefit, which may lead to benefit stacking without harmonization (C-422, s.1). Assumption noted.
• Implementation risk if existing or planned regulations rely on household income; those rules would need revision, which could delay rollout or require system changes (C-422, s.2). Assumption noted.
• Diverges from many income-tested benefits that use family or household income, creating administrative inconsistency across programs. Assumption noted.