Federal government announces new one-time supplement for Canada Disability Benefit recipients

On July 1, the federal government announced that recipients of the Canada Disability Benefit (CDB) will be entitled to a $150 supplement, to reduce costs associated with applying for its pre-requisite, the Disability Tax Credit (DTC) starting September 1, 2026.  

This payment will be available for anyone who was approved for the DTC and is entitled to any amount of the CDB. Anyone who is currently receiving or has received a CDB payment will still be eligible, even if they are no longer receiving CDB payments. 

You do not need to apply for the supplemental amount; it will be delivered as a lump sum to eligible people starting September 2026.  

This change comes with four smaller changes to clarify Canada Disability Benefit Regulations. It is now made clearer that: 

  • CDB payments will not be treated as income under the Income Tax Act 
  • Those that have been granted a waiver that exempts their spouse or common-law partner from having to file an income tax return will be treated as single for the purpose of calculating monthly CDB payment amounts
  • People may apply up to 6 months prior to their 18th birthday
  • Interest will not accrue on debts during reconsiderations, appeals or judicial reviews 

DABC commends the federal government for this positive change, but we recognize that the up-front fees charged by medical practitioners for filling out DTC applications will continue to pose a barrier to accessing the DTC and CDB for many people with disabilities living on low incomes. DABC currently has a DTC Medical Fees Fund, through which you can donate to directly cover these costs for successful applicants to the Fund.  

Information about these changes and the new supplement is available at Canada.ca

DABC Recommendations for BC Budget 2027

The Select Standing Committee on Finance and Government Services holds an annual public consultation on the next provincial budget. DABC recently submitted our recommendations for Budget 2027. Read it below or download itDABC Recommendations for BC Budget 2027.

Learn more about the consultation process here: https://consultation-portal.leg.bc.ca/consultations/195.

Please note that we were only able to submit a maximum of three recommendations.


Budget 2027 Consultation

Disability Alliance BC (DABC) Submission to the Select Standing Committee on Finance and Government Services

Disability Alliance BC (DABC) is a provincial cross-disability charity, advocating for the rights of people with disabilities. The focus of our submission will be on ensuring that the BC Government invest in programs which will improve the financial security of low-income people with disabilities across our province, particularly focused on Disability Assistance, Public Transportation, and Medical Equipment.

Recommendation 1 (300 characters): Indexing Disability Assistance rates to inflation, and removing clawbacks from employment insurance income and spousal income for people on Disability Assistance.

Explanation (2000 characters):

DABC notes the small increase to Disability Assistance made in December 2025 for couples, however overall rates to the support portion of Disability Assistance has not been increased for individuals since 2021. DABC argues that the rate of inflation over the past 5 years has been significant, particularly so for people with disabilities and low income individuals and families. DABC calls upon the BC government to make good on their commitments to poverty reduction as listed on page 34 of the 2024 Poverty Reduction Strategy, specifically: “considering the case for indexing rates to inflation”, and “Considering income exemptions that could stack benefits and help people retain more income – Examples could include changing the rules around spousal income or exempting federal benefits like Employment Insurance from income.”

People on PWD deserve to feel financially secure; they should have reassurance that their PWD income will increase if inflation increases; and they should feel secure in knowing they can access their federal right to Employment Insurance (EI) without having their PWD income clawed back.

EI should be treated as a form of earned income, not unearned income, because workers contribute their employment earnings to EI through a deduction in their pay cheque. Everyone who pays EI premiums can rely on EI benefits being there when they need them, including PWD clients, however the difference is that PWD clients “are required to pursue and accept the other income or means of support,” meaning that they must accept EI if they are eligible, but have no recourse to stop their PWD income from being clawed back. We believe this clawback of EI benefits discriminates against PWD clients, which hinders them from escaping the cycle of poverty.

Recommendation 2: Streamlining the provincial bus pass program for people with disabilities to include HandyDART rides:

Explanation:

DABC calls upon the provincial government to make good on a campaign promise within the BC NDP’s action plan from the 2024 election, namely “Improve transit for people with disabilities by bringing BC’s HandyDART service into government, instead of sub contracting the service to a private company.” DABC wishes to see HandyDART brought within government control not only because it will guarantee greater accountability to the public and the disability community on the state of its operations, but will also pave the way for HandyDART to more easily become integrated into the BC bus pass program, which is available to seniors and people on Disability Assistance.

Transport 2050 states that its goal is “a “fairer and more just and inclusive transportation system that truly delivers on the promise of Access for Everyone.” A more inclusive public transportation system would involve bringing HandyDART into the BC bus pass program so that low income people with disabilities who are unable to navigate conventional public transit would be able to access this much-needed service. Currently, people on Disability Assistance have to pay out of pocket for HandyDART, which we believe is a form of financial exclusion.

Recommendation 3: Establish an Assistive Devices Program in BC

Explanation:

In BC, most financial coverage available for adults for assistive devices is available for people on Disability Assistance only. Aside from Disability Assistance coverage, some people also may qualify for assistive devices through WorkBC if they can establish a work-related barrier due to a disability; however, this still excludes many people with disabilities.

People with disabilities who do not qualify for these two options above are left to purchase expensive medical equipment on their own or to seek out help from non-profits and charities. This creates an inconsistent system of care for people with disabilities in our country, as both Alberta and Ontario have programs that provide this coverage. The Province of Ontario has the Assistive Devices Program, and the Province of Alberta has the Aids to Daily Living Program.

DABC recommends that the BC government follow the lead of other provinces in establishing this support program that is offered to people with disabilities beyond those who receive Disability Assistance. An immediate first step would be to extend eligibility to low income seniors and to people who solely receive CPP-D.

Province Announces New Benefit, Supplement Supporting Children and Youth with Disabilities

On February 10th, the Province of BC announced the phasing in of a new B.C. Children and Youth Disability Benefit program and B.C. Children and Youth Disability Supplement, replacing the current autism funding program. With these changes, which were developed in consultation with families, service providers and experts, the Province aims to reach thousands more children and youth with a range of disabilities. 

Details of the new Benefit and Supplement, as reported in the Province’s news release: 

  • Over the course of 2026 and 2027, the new B.C. Children and Youth Disability Benefit will launch to provide families of children with significant disabilities with $6,500 or $17,000 per year based on their individual needs. 
  • Starting July 2027, a new income-tested B.C. Children and Youth Disability Supplement will also become available to families with any child under age 18 who is eligible for the federal Disability Tax Credit. The supplement will provide up to $6,000 per year (based on the level of family net income), which families can use to pay for therapies, supports and services they believe are most helpful. The new supplement is designed to support families with middle and low incomes. 

DABC is very heartened by the opportunity for a wider diversity of children with disabilities and their families to receive key supports, and applaud the Province for taking these steps toward equitable access to financial support.  

We also recognize that some families receiving current autism supports may feel uneasy about these changes. We hope that these families will continue to receive the supports they need.