The Canada Disability Benefit (CDB) was introduced with great promise: a direct path to financial support for low-income individuals with disabilities, offering a chance to break free from poverty. Yet this promise is undermined by a major obstacle: the Disability Tax Credit (DTC).
According to the federal government’s budget tabled in April 2024, eligibility for the CDB will be determined by prior qualification for the DTC. This is a barrier to access; to apply for the DTC, one must navigate a cumbersome process which involves extensive paperwork and certification from medical professionals.
Appointments, assessment fees, and time away from work or caregiving add up, and make qualifying for the DTC a costly and time-consuming endeavor that many low-income individuals simply cannot afford. For those already struggling to make ends meet, these hurdles can be insurmountable.
The financial support promised by the CDB will remain out of reach for those who cannot afford the time, money, or resources required to obtain DTC certification.
The DTC process also disproportionately impacts marginalized groups. For instance, individuals with mental health conditions or episodic disabilities frequently fail to meet the DTC’s rigid and outdated criteria, even though these conditions often create significant barriers to daily life and employment. Similarly, racialized and newcomer Canadians may face systemic barriers in accessing medical care, further complicating their ability to qualify.
What makes this approach particularly troubling is that the DTC was never designed as a tool to determine eligibility for social benefits. It is a tax measure meant to offset disability-related expenses for those with taxable income.
Many low-income Canadians with disabilities do not benefit from the DTC because they lack sufficient taxable income to begin with. Yet, despite its shortcomings, the government has chosen to use this flawed system as the gateway to the CDB, effectively excluding many of the very individuals the benefit was designed to support.
If the government is committed to supporting Canadians with disabilities, it must establish a simpler, more inclusive eligibility process.
A practical and immediate solution would be to automatically qualify individuals who are already receiving provincial or territorial disability benefits for the DTC. This change would eliminate redundant applications, reduce bureaucracy, and dramatically expand access to the CDB.
From a fiscal perspective, simplifying eligibility for the CDB is a practical way to save taxpayer money while improving accessibility. By streamlining the process, the government could reduce administrative costs associated with processing and assessing DTC applications, while ensuring that those who need the CDB most are not turned away.
Broadening eligibility also aligns with principles of economic growth. Many Canadians with disabilities want to work and contribute to their communities but require financial stability to do so.
The current rigid eligibility requirements prevent many from accessing the essential supports they need to enter or remain in the workforce. Without adequate financial support, people with disabilities face heightened challenges in securing employment, pursuing education or training, and improving their quality of life.
The CDB was envisioned as a tool to uplift and empower individuals, but it cannot fulfill this promise if access is restricted by the DTC. By adopting a more inclusive and equitable approach to eligibility, the government can make good on its commitment to support Canadians with disabilities.
The time to act is now: Canadians with disabilities deserve support, not obstacles. This can only be achieved by eliminating the Disability Tax Credit as a barrier to access for the Canada Disability Benefit.
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About the authors:
Rabia Khedr is the National Director of Disability Without Poverty.
Senator Judith G. Seidman lives in Montreal and represents Quebec in the Senate. She is an epidemiologist and aging-related health researcher.
