While the Canada Disability Benefit would deliver only a modest financial boost for eligible welfare recipients, clawbacks could save the provinces up to hundreds of millions dollars a year, expert says
Ottawa’s new benefit for people with disabilities risks becoming an indirect financial transfer to many of the country’s provinces and territories if more jurisdictions don’t take steps to avoid automatic clawbacks of social-assistance payments that will be triggered by the federal income support, experts warn.
While the CDB would deliver only a modest financial boost for eligible welfare recipients, clawbacks could save the provinces up to hundreds of millions dollars a year, according to Alexi White, director of systems change at Maytree, an anti-poverty think tank.“This is not a rounding error for provinces – particularly larger provinces and even for smaller provinces,” he said.
But many provincial and territorial governments have so far kept mum about how they’ll handle the new federal payments, even after Ottawa recently released draft regulations for the CDB that provided much-needed insight into its design, Mr. White said. Sheltering the CDB from welfare clawbacks would ensure the new benefit delivers at least some financial relief for many working-age Canadians with disabilities who live in deep poverty.
Critics have also lambasted the Trudeau government for tying eligibility for the CDB to the Disability Tax Credit, or DTC, which has notoriously been difficult or impossible to access for many Canadians with disabilities.
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