Of all the things governments spend money on, support for people with severe disabilities who struggle to work is among the most obvious and important.
This article was originally published in The Hub on January 13, 2026.
Of all the things governments spend money on, support for people with severe disabilities who struggle to work is among the most obvious and important.
So, when the Liberal Party of Canada promised a new benefit for working-age people with disabilities during the 2021 election, many Canadians hoped that it could provide meaningful income support for this population. Bill C-22, which introduced the Canada Disability Benefit, received the unanimous support of all parties in the House of Commons.
Unfortunately, once the details were revealed in Budget 2024, the actual Canada Disability Benefit severely under-delivered its promise. The result is that the benefit barely moves the needle on support for one of Canada’s most underprivileged groups.
Let’s look at the data. Canadians with severe disabilities tend to live in poverty at a much higher rate than other Canadians. Statistics Canada data show that the median after-tax income for working-age Canadians with disabilities was $30,950 in 2020, about one-third less than the $46,080 that the median Canadian without disabilities took home that year.
Those with severe disabilities are two and a half times more likely to live in poverty: 18 percent versus 7 percent for those without disabilities. Most damning of all, people with disabilities are four times more likely to experience severe food insecurity. That means missing meals, reducing food consumption, or even going a day or more without food.
In a country like Canada with so much abundance, there really isn’t a good reason for this. Part of the problem is a lack of employment opportunities. Many people with disabilities face significant barriers to employment to the point that the employment rate for people with very severe disabilities is less than 30 percent, compared to nearly 80 percent for those without disabilities.
The Canada Disability Benefit, which the government started paying out last year, was an attempt to fill the gaps between provincial disability support programs and the needs of Canadians with disabilities.
For all its shortcomings, the program has some strengths. For example, the benefit includes a long phase-out tail as recipients’ incomes rise, so that it is not cut off as soon as recipients obtain paid employment. This incentivizes work, which we know brings benefits beyond just having a paycheque.
But the benefit amount is too low to make a meaningful impact on people’s lives. Neither of us believes that every social problem can be totally solved by a government program, but if ever there was a case for income support, it is to support people whose disabilities make it difficult or impossible to obtain paid employment.
That’s why it is so surprising that the federal government severely limited the Canada Disability Benefit. Amid all the lavish spending of previous years and continued willingness to borrow money, the federal government became surprisingly stingy when it came to this benefit, offering just $200 per month or a maximum of $2,400 per year.
The Parliamentary Budget Officer has estimated that the benefit would need to be six times that amount to lift people to the poverty line. Of course, the federal government isn’t solely responsible for ensuring the standard of living of people with disabilities, but the point is that the benefit barely moves the needle on the pervasive income insecurity faced by many Canadians with disabilities.
Moreover, the total budgetary envelope was pegged at 0.3 percent of federal expenditures. Surely the government could have found savings in the other 99.7 percent of spending to reallocate to increase this benefit. For example, the government has spent 10 times that amount just on electric vehicle subsidies.
There are a few things that the government could do. First and foremost, it should increase the benefit amount. Even in an era of fiscal restraint, ensuring that people with disabilities can live lives in accord with their human dignity must remain a central role of governments.
Alternatively, the federal government could transfer an equivalent amount of money to the provincial governments to let them allocate it through their existing disability support programs. The most important thing is that the money gets delivered fairly, effectively, and equitably to the people who need it. The provinces, being closer to the people affected by the policy, may be in a better position to do this.
Finally, we should recognize that governments will be unable by themselves to solve all problems and guarantee a quality of life for people with disabilities. So, governments and citizens must also support charities and other civil society organizations that can better tailor their support to the needs of individuals.
It’s never too late to do the right thing. The case for reforming the Canada Disability Benefit is strong and should be supported by all parties, just as the initial legislation was. The federal government needs to reconsider its priorities in this case.
- Renze Nauta is the work and economics program director at Cardus. Taylor Jackson is The Hub’s research and prize manager. Together, they co-authored the Cardus report Still Not Enough: How to Fix the Canada Disability Benefit to Really Help Canadians with Disabilities.
January 13, 2026
