Miscalculated Canada Disability Benefit (CDB) Payments in July 2025

From canadadisabilitybenefit.ca, Plan Institute’s informative website on all things related to the CDB:

“In August 2025, Service Canada discovered that some people’s monthly CDB payments had been miscalculated. If your CDB application was approved by June 30, the working income exemption may not have been applied to your calculation, meaning that the first payment you received might be below your entitlement, or you did not receive a payment at all.

If you are affected by this issue, you will receive a letter from Service Canada in the mail notifying you of the miscalculation. If you receive this letter, you do not need to file a Request for Reconsideration. Service Canada will automatically recalculate your benefit amount to see if you may be entitled to a higher payment.

Once Service Canada has completed the recalculation, you will receive a second letter confirming your revised monthly benefit amount. You will also receive any money owed to you from the months you were approved for the CDB. Your monthly payment will remain the same until the recalculation is complete.

To check how much you may be eligible to receive, you can use the Canada Disability Benefit Estimator tool.”

Update on the Canada Disability Benefit

Big news! 🎉

Today, Minister of Diversity, Inclusion and Persons with Disabilities, Kamal Khera, announced that regulations for the Canada Disability Benefit (CDB) are complete, and will come into force on May 15th, 2025. The first CDB cheques will be dispersed in July 2025.

Read Minister Khera’s statement here.

The Government has also confirmed that the Disability Tax Credit will be the main prerequisite for the CDB. To learn more, click here to read our blog post from October 2024 “What the Disability Tax Credit means for the Canada Disability Benefit.”

Need help to apply for the Disability Tax Credit? We can help! To learn more, click here.

Plan Institute recently created a website dedicated to the CDB, and it’s a fantastic resource. Check out their page on preparing for the CDB here.

While we still wish that the CDB would put more money into the hands of more people with disabilities in Canada, it is indeed great news that eligible people will be able to benefit from it very soon.

 

What the Disability Tax Credit means for the new Canada Disability Benefit

Starting in July 2025, individuals who are low-income will be able to apply for the Canada Disability Benefit (CDB). This new monthly benefit will be up-to $200 and is intended as financial relief for people with disabilities living in poverty. The CDB will be an additional amount of money that will not be clawed back from current provincial disability assistance. We know that $200/month is far from being enough to lift people with disabilities out of poverty. More information on DABC’s thoughts on the proposed regulations can be found in our position statement on the 2024 Federal Budget and in-depth review of the CDB.  

The proposed eligibility requirements for the benefit are: 

  1. Be a resident of Canada for tax purposes 
  2. Have an active Disability Tax Credit (DTC) with the CRA
  3. Be up-to-date with filing your taxes 

Once you meet these requirements, you will then have to submit a separate application for the CDB.  

This means having the DTC will become even more crucial for people with disabilities who are trying to access other government benefits.  

Barriers to the DTC 

One of the greatest barriers preventing people from accessing the DTC is the lack of awareness and understanding around it. Many people do not know that it even exists, or if they do, they do not realize they can qualify for it.  

Another major barrier is the application process itself. The 16-page application, called Form T2201, can be overwhelming and discouraging to people wanting to apply. The form requires medical certification which can be very difficult for Canadians who do not currently have a family doctor and are struggling to find one. A lack of awareness and understanding also extends to the medical practitioners that need to sign off on the forms. Medical practitioners might not be entirely aware of the daily restrictions their patients deal with, and therefore may not know how to fill out the forms accurately.  

There are also the financial barriers to accessing the DTC. Currently, the medical practitioner fees to fill out the forms are unregulated. People who are already financially struggling might be forced to pay hundreds of dollars out of pocket to have the forms certified by doctors who want to be compensated for their time spent on the lengthy forms.  

CDB Budget to Cover DTC Medical Practitioner Fees  

It was announced in this year’s federal budget that there will be funding intended to provide coverage for these costs, but the government has not announced when it will be made available, and how much of the costs will be covered.   

DABC has launched a DTC Medical Fees Fund for individuals who need funding as soon as possible. You can find out more in our official announcement post here. 

Apply for/Renew the DTC 

Applying for and renewing your Disability Tax Credit can take time. It requires both Part A and Part B of the Form T2201 to be submitted to the CRA. Once both parts are submitted, it can take the CRA months to review and approve the application. With more and more people becoming aware of and applying for the DTC, CRA wait times may become even longer. For individuals who want to be able to apply for the new Canada Disability Benefit as soon as it is available next year, we encourage you to apply for the Disability Tax Credit as soon as possible. 

DABC has many resources available for those looking to apply, including a re-launch of our “My DTC” online app. You can find out more here 

We also have a useful DTC Helpsheet where you can find out more benefits to getting approved for the DTC. 

We have advocates who can provide 1-on-1 support to clients with filling out the application. Please be advised that we are anticipating more individuals seeking advocate support in the upcoming months with the benefit announcement. We encourage you to reach out for their assistance as soon as possible to access the benefit when it becomes available next year. 

Please reach out through phone at (604)-923-8136 or email us at rdsp@dabc.ca. 

The Canada Disability Benefit as proposed is not adequate, but it will be an important benefit for people with disabilities moving forward. There is more work to be done. Read more about the Canada Disability Benefit from experts, community members, and advocate in our upcoming issue of Transition Magazine.