Some Ontarians fear 'lifeline' disability benefit won't deliver

With most provincial and territorial governments confirming they will not claw back a federal disability benefit top-up, some in Ontario are worried their government has not made a similar statement.

Many living on the Ontario Disability Support Program (ODSP) for people whose ability to care for themself and work has been restricted describe the money they receive as unliveable. Advocates have been outspoken in their demands, including doubling of ODSP rates.

Parliamentarians passed a Canada Disability Benefit (CDB) in 2023 and $6.1 billion was committed in the 2024 budget. 

Proposed regulations were announced this June and beneficiaries are poised to receive their first payments in July 2025 of up to $2,400 per year.

For ODSP Action Coalition co-chair Ron Anicich, an average of $200 per month is "disappointing," but at the same time every penny counts for most recipients.

"People would skip [fewer] meals, be able to go out once or twice, and have an easier time getting to medical appointments," he said. "We have trouble getting out of our houses a lot of the time."

Although the federal government is discouraging clawbacks, there is no mandate against it in the proposed regulations; each provincial and territorial government will decide what residents keep. In theory, lower governments could reduce contributions as federal money rises.

Seven provinces and territories have said they won't claw it back, according to an email from the federal minister of diversity, inclusion and persons with disabilities. Ontario isn't among them.

"Right now we are hearing from people who are waiting for the Canada Disability Benefit as a lifeline," said Rabia Khedr, national director of Disability Without Poverty.

Clawing back a benefit giving hope to those looking to improve their quality of life could come with a  "whole bunch of consequences," she said.

Deductions do happen

ODSP deductions at the provincial level are not just a fear, says Anicich: they happen. 

Financial advisor Ron Malis describes ODSP as a "last payer," meaning recipients may be compelled to seek out other potential sources of income if eligible — which may decrease ODSP entitlements. 

Money from the Canadian Pension Plan Disability (CPP-D) is taken from one's ODSP payment at a dollar-for-dollar rate. The Canada Emergency Response Benefit (CERB) was also taken taken, though a bit differently.

"From a fiscal management perspective, if you're in the government you're saying 'Well, we can reduce our cost that we need to cover for ODSP benefits by [up to] $200 per person per month.' That's a pretty significant amount of money," he said.

If a clawback is announced, Malis fears those on ODSP would be compelled to apply for the new federal benefit.

"ODSP can compel you to apply for CPP-D and if you refuse to … it puts your ODSP in jeopardy," he said. "I could certainly see them saying 'Yeah let's compel people to apply for it.'"

A dollar-for-dollar clawback would render the increase meaningless to recipients, said Malis.

"It would be very easy to just think 'until I hear the Ontario government say no, we are not going to claw back ODSP benefits' … until you hear that, I don't see why you wouldn't be anxious about that possibility."

Hurts more than people's pockets

Khedr says clawbacks could leave Ontarians on ODSP worse off than not receiving any money at all.

It is taxing for many to jump through hoops to become eligible for the benefit, says Khedr. Costly and confusing disability tax credit (DTC) applications, transportation and other costs may impact Ontarians already struggling both financially and mentally, she said.

Many Canadians do not currently have a DTC certificate.

"It demoralizes people," she said. "It makes them feel dehumanized, having to prove their disability again and again."

The federal government said in this year's budget it would began providing funding to cover the fees needed for those applications.

No response from the province

Khedr and Anicich say their groups have been trying to ask the Ontario Ministry of Children, Community and Social Services responsible for ODSP about clawbacks, but have not received answers.

Khedr says her group has spoken to the parliamentary secretary and a ministry policy person, but haven't spoken with Minister Michael Parsa.

In those conversations with members of the ministry, she says they asked about clawbacks and received "no response."

The CBC also reached out to the ministry to ask about a clawback. In response, it sent a statement talking about recent increases to disability payments and other ODSP changes.

"We want to ensure that low-income Ontarians who qualify for the CDB continue to receive the supports that they depend on," a spokesperson wrote.