Province announces changes to spousal clawbacks
November 13, 2025 by DABC
The Province of BC announced today that starting Dec. 1st, 2025, couples who are both receiving Persons with Disabilities (PWD) Benefits, will receive the same support allowance as they would if they were two single people. Additionally, beginning Jan. 1, 2026, couples where one partner has the Persons with Disabilities designation will see an increase to their annual earnings exemptions, meaning they can keep more of the money they earn.
DABC commends the Province for these changes, which will benefit thousands of families in BC. At the same time, we will continue to advocate for the full removal of the PWD spousal cap. It can still have negative impacts, particularly in circumstances where one person in a couple has a disability and the other does not and has employment income.
As we noted in a post from July 2024, which also details some of our advocacy work on this issue, there are many negative impacts to restricting a person’s disability income because of a partner/spouse’s income:
- Creates unequal power dynamic between partners.
- In scenarios where a person on PWD is in a live-in relationship with a non-disabled person, it expects that the non-disabled partner is responsible for the disabled partner’s livelihood and well-being. This circles back to outdated, patriarchal laws of many decades prior.
- Particularly for people who identify as women/femmes, this can create a level of dependence on the non-disabled partner that may lead to spousal abuse.
- Creates a level of financial dependence on the disabled partner whereby they may feel they have no choice to end a relationship.
- In the context of dating/seeking relationships, being on PWD prevents people from entering into relationships on an equal footing, or even deters prospective partners because of the expectation that they become financially responsible.
Read the Province’s full news release here.
DABC Executive Director appointed to BC's Provincial Accessibility Committee
DABC Executive Director Helaine Boyd is one of the five new members appointed to British Columbia’s Provincial Accessibility Committee (PAC). She is excited for this opportunity to advise the provincial government in the development of accessibility standards, ensuring that the voices of people with disabilities are meaningfully included.
Read the Province’s news release for more information: https://news.gov.bc.ca/releases/2025SDPR0014-001006
The Price of Tax Cuts: Why Reducing Taxes Cost Low-Income Communities More
Recent tax cuts in BC and across Canada were meant to ease financial pressure for Canadians. However, for many low-income individuals, particularly for people with disabilities, these policy changes are having the opposite effect.
Earlier this year, the provincial government removed the BC consumer carbon tax which meant the end of the BC Climate Action Tax Credit (BCCATC). In July, the federal government reduced the lowest personal income tax rate to 14%, further altering the tax landscape. While these actions were intended to offer relief, they end up removing vital financial supports from those who need it the most.
The negative impacts of tax policy changes on marginalized groups are not new; in December, DABC published an article in the Osgoode Hall Law Journal about the “Compounding Barriers to Access” that women with disabilities face within the tax system. The tax system is meant be a tool for redistributing wealth in a way that supports fairness and equity. For people with disabilities, who frequently face barriers to full participation in the workforce, social programs funded through taxes are essential.
Losing the BC Climate Action Tax Credit
When it was in place, the BCCATC was one of these tax measures, offering meaningful support in quarterly payments for people on low-to-modest incomes. A single person making $41,071 or less per year received up to $504. Families making up to $57,288 annually would be eligible for the full credit of $504 for an individual, $252 for their spouse and $126 per child. Now, people who rely on that support are left without alternatives. This hits especially hard for individuals who do not drive and would not benefit from a carbon tax cut.
Lowered Tax Rates Will Reduce Tax Credit Amounts
In July, the federal government lowered the lowest marginal tax rate from 15% to 14% (Bill C-4). While this may sound like good news, it also decreases the value of non-refundable tax credits—such as the Disability Tax Credit, the Canada Caregiver Amount, and the Medical Expense Tax Credit. This reduction means smaller refunds or reduced tax relief for people who rely on these credits to help with essential costs.
For many of our clients, decreased tax amounts are not insignificant— but can go towards urgent health, food, and shelter costs. These new policy changes are unintentionally burdensome for individuals and families who struggle to afford basic needs and are in most need of financial relief.
DABC continues to support actions that call for greater consideration for low-income populations:
- We ask that the provincial government create a new tax credit to replace the financial support lost from the elimination of the BCCATC.
- We call for tax credit amounts to be decoupled from the marginal personal tax rate so that individuals can expect a consistent refund, regardless of tax rate changes.
Accessibility and diversity need to be at the forefront of any policy change. Tax systems should be designed to lift people up—not leave them behind. As governments seek to provide relief and balance their budgets, they must ensure that those already facing the greatest barriers aren’t pushed further into poverty.