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Benefit boost offers little relief

The poverty rate among those living with disabilities is alarmingly high, yet a proposed new Canada Disability Benefit is woefully inadequate

May 28, 2025

Megaphone exists to address the lack of low-barrier income-generating opportunities for individuals facing challenges to traditional employment in Vancouver, including those living with disabilities. More than 30 per cent of our vendors report relying on disability benefits.

The poverty rate among people with disabilities is alarmingly high. According to Canada’s Disability Inclusion Plan (2022), 28 per cent experience severe poverty, while 34 cent live in extreme poverty. Those relying on disability benefits often also depend on social assistance.

In B.C., a single individual on social assistance receives $1,060 per month, while a single parent with one child receives $1,405. Meanwhile, during the COVID-19 pandemic, the Government of Canada determined that $2,000 per month through the Canada Emergency Response Benefit was the bare minimum needed for an individual to survive while unemployed.

If someone qualifies for CPP disability benefits, they may receive between $583.32 and $1,606.78 monthly to help cover living costs and disability-related expenses. However, these benefits are not exempt from being counted as unearned income, leading to a clawback of social assistance funds. A clawback occurs when social assistance benefits are reduced because the recipient has received income from another source.

In September 2020, during the height of the pandemic, the federal government announced a new Canada Disability Benefit (CDB) in a throne speech. The legislation passed in June 2023, and the following year it was revealed that individuals living with disabilities would only receive a supplement of $200 per month.

The legislation, offering this woefully inadequate supplement, will be in public consultation until June 2025. It remains unclear how individuals will access this supplement or if it will trigger a clawback of social income.

Social assistance and disability benefits are essential lifelines but consistently fall short in addressing the actual needs of recipients. The financial burden of living with a disability — covering costs for medications, therapies, equipment, housing, care and more — is staggering. While in-kind support through income assistance may help with some of these expenses, it’s often inadequate. Worse, any additional income that matches or exceeds the amount provided by social assistance can result in the complete loss of these crucial benefits.

If no action is taken at the provincial level, recipients of the CDB could see their social assistance reduced dollar-for-dollar by the new benefit. This situation could be easily rectified at no cost by simply exempting the CDB from the calculations for social assistance — a change that would require just one line added to the social assistance regulations.

As the provincial election approaches, the BC Poverty Reduction Coalition is calling for immediate action. Visit its website (bcpovertyreduction.ca) to notify your representative that you support adequate financial assistance for individuals and families experiencing disability and poverty.   

As summer ends, Megaphone’s busy season begins, continuing our advocacy for those impacted by poverty and disability. This month, we launch a three-part climate change series conceived of, researched and written by The Shift peer newsroom, highlighting how climate change exacerbates hardships for marginalized communities.

On Oct. 10, the 2025 Hope in Shadows calendar launches, and will spotlight the resilience within our community. Then, on Oct.  17, join us at our Breakfast Fundraiser, where award-winning journalist Michelle Cyca will discuss the impact of women in media. The event is a chance to celebrate and support those we advocate for every day.