What are the financial struggles of persons with disabilities?
Personal income of persons with and without disabilities
aged 15 and over in Québec in 2016
| Income | Estimated population of persons with disabilities | Percentage of persons with disabilities | Percentage of persons without disabilities |
|---|---|---|---|
| No income or less than $15,000 | 342,350 | 32.5% (+) | 22.2% |
| $15,000 to $29,999 | 318,880 | 30.3% (+) | 22.7% |
| $30,000 to $49,999 | 195,570 | 18.6% (-) | 25.4% |
| $50,000 and over | 196,560 | 18.7% (-) | 29.7% |
| Total | 1,053,350 | 100% | 100% |
The income of persons with disabilities in Canada is a complex and largely neglected subject, despite the considerable challenges faced by this demographic. The daily lives of persons with disabilities often result in higher costs than those without disabilities, due in part to additional needs for health care, accessibility and support services. This reality is all the more problematic in a financial support system that frequently struggles to meet the real needs of these individuals.
Some specific barriers and how to address them:
One of the main income challenges faced by persons with disabilities is the difficulty in finding enough money to meet their basic needs. Costs associated with specialized equipment, therapies, mobility aids and health care can quickly accumulate, leaving little room for other expenses, such as housing, food and recreation. This makes for an economically precarious life for many persons with disabilities in Canada.
In terms of housing, persons with disabilities face additional challenges. Accessible and adapted housing is often scarce and expensive, making it difficult for many persons with disabilities to find housing that meets their needs without spending a significant portion of their disposable income. Moreover, the modifications needed to make housing accessible can be costly, often forcing occupants to rely on government assistance or charity to obtain the necessary accommodations.
In addition to housing and medical costs, it is important to recognize that simply living with a disability creates additional costs in many other areas. Adapted transportation, home support services, specific personal care products and technological equipment are all examples of expenses that many persons with disabilities face on a daily basis. These costs contribute to a high level of poverty and financial insecurity among persons with disabilities in Canada.
Despite these challenges, government programs to provide financial support to persons with disabilities do not fully meet their needs. Disability benefits and other financial assistance are often too low to enable persons with disabilities to adequately meet their needs, leaving them in persistent financial precariousness.
Persons with disabilities in Canada face many financial challenges, including the difficulty of setting a sufficient budget to cover the costs of daily living, the high price of accessible housing, and additional disability-related expenses. To improve this situation, it is imperative that the government recognize these realities and take meaningful steps to ensure adequate financial support, thereby enabling persons with disabilities to live independently and in a dignified manner.
Overview of the situation
While the Canada Disability Benefit (CDB) will not solve every problem,1 the new CDB is an important step forward in recognizing and supporting Canadians with disabilities. However, its real impact on the lives of this population remains up for debate. This fact sheet examines the characteristics of the CDB, its ability to meet the needs of persons with disabilities and their ongoing challenges.
Announced in the federal budget, the CDB provides an annual benefit of up to $2,400 (or $200 per month) to eligible Canadians with disabilities. The eligibility process is based on the disability tax credit (DTC). However, despite these advances, concerns remain about the adequacy of this benefit with respect to the real needs of persons with disabilities.
With 41% of low-income Canadians living with disabilities and 16.5% living in poverty, the CDB is a necessary but perhaps insufficient response. More than 1.5 million persons with disabilities live in precarious conditions, underscoring the urgency of more effective government action.
While the CDB represents progress, its monthly amount remains insufficient to lift persons with disabilities out of poverty. It is essential that the federal government review its approach to ensure that this community is truly financially self-sufficient. The dependence of the CDB’s eligibility process on the disability tax credit is often criticized. It is imperative that the eligibility criteria be revised, and the tax credit program be reformed to better meet the needs of persons with disabilities.
Coordination between the two levels of government, particularly with respect to Québec’s Basic Income Program (BIP), is crucial. It is vital that government policies do not contradict each other and further aggravate the financial situation of persons with disabilities.
The COPHAN believes that the CDB represents an important first step towards recognizing the financial support needs of persons with disabilities. However, adjustments are needed to ensure that this benefit truly meets the realities and challenges facing this population in Canada.
The BIP is a relevant measure, but it is difficult to qualify for. To be eligible for the BIP, individuals must wait at least five and a half years as recipients of the Social Solidarity Program, where they receive only $1,138 a month. We believe such recipients should be immediately eligible for the BIP.
In addition, the BIP was intended to allow for the individualization of benefits, thereby promoting living together as a couple and eliminating financial dependence on a spouse. Unfortunately, the spouse’s earnings from work will always be taken into account and deducted from the benefit on a declining basis starting at $28,000.
Good practices
Making the amount for severe and prolonged impairment of mental or physical functions refundable.
Although an estimated 430,000 people aged 15 and over have a severe or very severe disability in Québec, only 120,000 claimed the amount for severe and prolonged impairment in mental or physical functions. This represents about 28% of the population concerned. In addition, of these 120,000 people, almost two-thirds (75,000) did not pay tax and therefore could not benefit from this non-refundable tax credit.
It should be noted that taxpayers with severe and prolonged impairments in mental or physical functions have a reduced ability to pay taxes—33% of them live on less than $15,000 per year.
Although the State acknowledges its obligation to offset any additional costs related to limitations, in accordance with the À part entière policy, the objective of this measure is not being met in this regard. It is therefore necessary to:
- Make the amount for severe and prolonged impairment of mental or physical functions refundable from fiscal year 2024, in order to effectively offset the additional costs associated with the limitations for all persons living with this severe and prolonged impairment.
- Promote the Severe and prolonged impairment in mental or physical functions amount so that more people who may be eligible apply for it.
- Abolish the five-and-a-half-year wait for Social Solidarity Program recipients to qualify for the BIP.
- Allow benefits to be individualized, thus enabling couples to live together and eliminating financial dependence on a spouse.
- Ensure alignment between the future Canada Disability Benefit (CDB), the Basic Income Program (BIP) and the disability pension to lift persons with disabilities out of poverty.
Ressources disponibles
- Statistiques sur le revenu des personnes handicapées [Statistics on the income of persons with disabilities], Government of Québec
- Tax credits and deductions for persons with disabilities, Government of Canada.
- Tax measures and pensions for people with disabilities, Government of Québec
- Backgrounder: Supporting Canadians with disabilities – Canada Disability Benefit, Government of Canada.
- Québec lance le Programme de revenu de base : une avancée majeure pour mieux soutenir les personnes ayant des contraintes sévères à l’emploi [Québec launches the Basic Income Program: a major step forward to better support people with severe employment constraints], Government of Québec
- Le gouvernement doit étendre le programme de Revenu de base à l’ensemble des personnes assistées sociales, [Government to extend Basic Income Program to all social assistance recipients], the Collectif pour un Québec sans pauvreté.
Fact sheet prepared by Dominique Salgado in collaboration with COPHAN.
- Sources: Statistics Canada, Disability Advisory Committee, Centre on Diversity and Inclusion
Fiches connexes dans ce guide
The following fact sheets cover the impacts of limited income on persons with disabilities:
