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

Withmostprovincial 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 restricteddescribe the money they receive as unliveable. Advocates have been outspoken in their demands, including doubling of ODSP rates.

Parliamentarians passed aCanada Disability Benefit (CDB)in 2023and $6.1 billionwascommitted in the 2024 budget.

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

For ODSP Action Coalition co-chair Ron Anicich, anaverage of $200per 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 whatresidents keep. In theory,lower governments could reducecontributionsas federal money rises.

Seven provinces and territories have said they won't claw it back, according to an email from the federalminister 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 benefitgiving 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. TheCanada Emergency Response Benefit (CERB) was also takentaken, though a bitdifferently.

"From a fiscal management perspective, if you're in the governmentyou'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 sayno, 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 ODSPworse 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 wouldbegan providing fundingto cover the fees needed for thoseapplications.

No responsefrom the province

Khedr and Anicich say their groups have been trying to ask the Ontario Ministry of Children, Community and Social Services responsible for ODSPabout 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 andreceived "no response."

The CBCalsoreached out to the ministry to ask about a clawback. In response, it sent a statement talking about recent increases to disability payments and other ODSPchanges.

"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.