Will the CDB Affect Other Benefits?

There is concern that the Canada Disability Benefit (CDB) may prompt clawbacks of other benefits. A clawback happens when a person’s income assistance benefit is reduced because they have income from somewhere else, and can mean that the person is no better off even though they are receiving an additional benefit, such as the CDB.

The CDB will not reduce the amount you receive from other federal income benefits, including the Canada Child Benefit, the Canada Workers Benefit, and the GST/HST Credit. However, to stop the CDB from clawing back provincial and territorial social assistance, each province or territory must list it as exempt income. If no action is taken, the CDB will automatically result in clawbacks.

Each province or territory will establish its own policy regarding whether the CDB will clawback other social assistance programs. The following provinces and territories have announced that there will be no clawbacks:

• British Columbia: Persons with Disabilities (PWD)

• Manitoba: Manitoba Supports for Persons with Disabilities

• Newfoundland and Labrador: Income Support Benefits

• Nova Scotia: Income Assistance

• Nunavut: Income Assistance

• Quebec: Basic Income Program/Social Solidarity Program

• Saskatchewan: Saskatchewan Assured Income for Disability (SAID)

Alberta is currently the only province/territory that has announced that it will be clawing back the CDB. This clawback will be made to payments under the Assured Income for the Severely Handicapped (AISH) program. Plan Institute and our partners are actively working on advocacy efforts in response.

The remaining provinces and territories have not yet made their decisions. We will update this section as new information becomes available.

During the 2024 Fall Economic Statement, the federal government called on provinces and territories to ensure the CDB does not result in clawbacks of other benefits and said it would take action to prevent this happening.

At Plan Institute, we have been advocating alongside our partner organizations to ensure that there are no clawbacks and people can receive the full amount of the CDB. Maytree has created the Advocacy toolkit: Preventing Canada Disability Benefit clawbacks to help organizations and individuals advocate and reach out to government decision-makers to prevent clawbacks related to the CDB in their province or territory.