Community Update: DABC's Response to 2024 Federal Budget

April 16th, 2024

Today, the federal government released Budget 2024. Included in the Budget is new information about the Canada Disability Benefit Act (CDB), which received Royal Assent on June 22nd, 2023, but has yet to come into force.

Budget 2024 reveals the following updates about the CDB:

  • The CDB will likely provide a maximum of $2,400 per year to eligible Canadians with disabilities.
  • Only people with disabilities, ages 18-64, who live on low incomes and have been found eligible for the Disability Tax Credit (DTC) will be eligible for the CDB.
  • Eligible Canadians will likely begin receiving CDB payments as of July 2025.
  • The federal government will provide $243 million over six years, beginning in 2024-25, and $41 million per year ongoing, to cover the cost of the medical forms required to apply for the Disability Tax Credit, to expand access to the DTC and therefore the CDB.
  • The federal government is calling on provinces and territories to ensure that CDB payments are not clawed back from provincial or territorial income/disability supports.

While DABC is happy to see a timeline for the enactment of the Canada Disability Benefit and the government’s recommendation against clawbacks, we are extremely disappointed to learn about the Disability Tax Credit eligibility requirement and the proposed $2,400/year cap. It can be very difficult for people with disabilities to be approved for the DTC due to its strict eligibility requirements, and $2,400/year is woefully inadequate; it will not lift most people with disabilities who are eligible for the CDB out of poverty.

DABC will continue to provide feedback to the government on the development of the Canada Disability Benefit.

In more positive news for Canadians with disabilities, “Budget 2024 announces the government’s intention to amend the Income Tax Act to make additional expenses eligible for the Disability Supports Deduction, subject to certain conditions, such as:

  • service animals trained to perform specific tasks for people with certain severe impairments;
  • alternative computer input devices, such as assistive keyboards, braille display, digital pens, and speech recognition devices;
  • and, ­ergonomic work chairs and bed positioning devices, including related assessments.”

Read the full Budget plan here: https://budget.canada.ca/2024/report-rapport/budget-2024.pdf.

DABC Follows Up with Minister Malcolmson On Her Interview with the Tyee

DABC’s response to the information linked below:

Since the Tyee article linked above came out yesterday, DABC has seen reactions from members of the disability community on social media channels. Secure and stable income is vitally important to everyone, but especially so for low income people with disabilities that rely on disability assistance. For years now, the disability community has been waiting for the Canada Disability Benefit (CDB), to seek clarity on what the Benefit will look like and how it will be rolled out. We are still waiting.  

So, when an article such as this comes out questioning whether the BC Government will claw back PWD income from the CDB, it rightly strikes a strong reaction of fear and anger for those who depend on PWD income for their livelihood and well-being.

Yesterday, DABC and other advocacy groups met with Minister Malcolmson during a luncheon organized by Disability Without Poverty BC. DABC and others had an opportunity to question Minister Malcolmson on the Tyee article. Minister Malcolmson said to us that she felt her interview with the Tyee was taken out of context and that the BC Government can’t officially declare a decision on the treatment of CDB income until the Federal Government shares with the provinces what the CDB will look like. Additionally, she said that the Ministry of Social Development and Poverty Reduction (SDPR)’s approach to the treatment of CDB income will likely be in the same spirit to how SDPR treated income from the Canada Emergency Relief Benefit (it did not claw back PWD income).

DABC also heard from Minister Malcolmson in 2023, when she stated verbally during a community stakeholder meeting that the Province does not intend to claw back CDB payments from PWD income. DABC will continue to hold Minister Malcomson and the BC Government to account on this, to ensure that when the Canada Disability Benefit is rolled out into the bank accounts of people with disabilities, it does not claw back PWD income.

We also call upon the BC Government to take a more active role on the federal level in being kept up to date on new developments around the design and implementation of the CDB. There are approximately 200,000 people in our province on PWD, and they deserve a Ministry that is proactive, transparent and communicative on this incredibly important issue that has a great potential to increase their income and overall quality of life.

DABC Statement on Bill 7 – Social Development and Poverty Reduction States Amendment Act, 2024. 

Today, March 5, 2024, The Minister of Social Development and Poverty Reduction introduced Bill 7, which proposes amendments to three Acts:

  • Employment and Assistance Act (EAA)
  • Employment and Assistance for Persons with Disabilities Act (EAPDA)
  • Poverty Reduction Strategy Act (PRSA)

Bill 7 can be found on the Legislative Assembly of BC website here.

The proposed amendments passed first reading and are scheduled for second reading in the next sitting of the house (likely tomorrow). Understanding that there was no debate or questions when Bill 7 was first introduced today, we anticipate that the Bill will be passed and receive royal assent soon.

DABC’s assessment of Bill 7 primarily focuses on the changes to the EAPDA which governs the legislative requirements of the Ministry of Social Development and Poverty Reduction (SDPR)’s management of provincial disability assistance (known colloquially as PWD). We list below the main changes to the EAPDA and possible implications:

  • The requirement for an employment plan has been removed

Under the EAA, those who are on Income Assistance (IA) are required to enter into an employment plan as part of the eligibility stipulations to continue to receive IA. The EAPDA also had provisions that required people on PWD to enter into an employment plan, however this hasn’t been enforced by SDPR in many, many years. This change to remove any requirement to have an employment plan for people on PWD reflects what is already happening in practice. To confirm, people on PWD are not required to look for work.

However, to ensure that people on PWD still have the same access to employment supports and opportunities as those on IA, a person on PWD can request to receive an employment needs assessment and employability plan should they choose. Receiving a needs assessment or employability plan as a person on PWD does not directly result in their PWD eligibility denied or having their PWD income clawed back. The $16,200 annualized earnings exemption still applies.

  • Removes the monetary penalty in cases of inaccurate or incomplete information submitted by PWD or IA clients

The new changes to both the EAA and the EAPDA removes the Ministry’s ability to impose a monetary penalty to an IA or PWD client in cases when the client has received an overpayment as a result of inaccurate reporting. What this means is that the Ministry will still have the ability to “garnish” or claw back a person’s IA or PWD payments so that any overpayment previously provided to the client is rectified through a garnishment or clawback, but that the Ministry no longer has authority to impose additional monetary penalties beyond the overpayment amount.

DABC are happy to see that SDPR will no longer be allowed to impose further monetary penalties on PWD clients for inaccurate reporting. In our experience supporting PWD clients, it is almost entirely the case that inaccurate reporting has occurred because the rules for reporting under PWD can be very complex and hard to follow.

DABC’s support on overpayment issues is limited as this process largely requires the client to provide additional information to SDPR, however we may be able to advocate on your behalf to negotiate a fair repayment plan if you are on PWD. Please reach out to us if you have any questions or requests for support.

  • Increases the amount of time a person has to appeal an IA or PWD application

Currently, if a PWD application is denied, the client has 20 business days to submit a reconsideration request to SDPR. If a reconsideration request is also denied, the client can submit an appeal to the Employment and Assistance Appeal Tribunal. Further information on the process for this can be found in our helpsheet here.

Under these new changes, the timeline for appeal has increased from 7 business days to 20 business days. This will give clients more time to prepare for an appeal.

We are encouraged to see the timeline for appeal being extended, as that will directly impact those trying to get onto PWD. DABC Advocates can assist clients with PWD applications, reconsiderations and appeals Please reach out to us if you have any questions or requests for support.

  • Flexibility to conduct pilot projects

Currently, SDPR are limited to what they can do in testing out new ways to implement IA and PWD programming. Bill 7 establishes SDPR’s authority to carry out pilot projects to test out new approaches in IA and PWD.

The implications for this are at first vague, as DABC is unsure what pilot projects SDPR plan to carry out, however in general we support this amendment as it will give more flexibility in trying new approaches to supporting PWD clients.

Overall Assessment

The EAPDA outlines the framework and authority of SDPR to manage provincial disability assistance, but it does not detail specifically how SDPR must carry out PWD. Most of the changes DABC wishes to see in the PWD system will need to come through the Regulation. To learn more about the difference between Acts and Regulations, please visit here.

DABC calls upon the Minister of Social Development and Poverty Reduction to begin meaningful public engagement in amending the BC Employment and Assistance for Persons with Disabilities Regulation. Last year, we wrote a series of recommendations on ways to improve the PWD system in a report here.