Question Period Note: Inflation has been particularly high and the impact on people living on fixed disability benefits could be raised.

What is the government doing to address the impact of inflation on people living on fixed disability?

• Our government is taking real action to improve the financial security of persons with disabilities.

• This includes measures announced in Budgets 2021 and 2022 to improve access to the disability tax credit, improvements to student financial assistance for persons with disabilities, and significant investments in an employment strategy for persons with disabilities.

• We also know many seniors in Canada have disabilities. They can be especially vulnerable to inflation, given they often live on fixed incomes. And so, our government is taking action. To ensure that they retain their value over time, the Old Age Security (OAS) pension and Guaranteed Income Supplement (GIS) benefits are reviewed four times per year (in January, April, July and October) in accordance with changes in the Consumer Price Index (CPI). This quarterly indexation provides benefit increases to recipients when prices go up. In addition, the Old Age Security Act contains a guarantee ensuring that benefits can never go down, even in the event of a decline in the CPI.

• In addition, On June 2, 2022, I was proud to stand before the House and table Bill C-22 the Canada Disability Benefit Act. This benefit will to support the hundreds of thousands of working age Canadians with disabilities living in poverty.

• In the spirit of “Nothing without us”, we are engaging the disability community on the design of the benefit. And we are also engaging provinces and territories to ensure persons with disabilities are better off because of the proposed benefit.

• I want to assure all Canadians that we will continue to work with the other parties to continue to build support to address the needs of persons with disabilities in Canada.

The rate of consumer inflation is continuing to rise, reaching 8.1% in June 2022. A few months ago, there was a CBC article entitled, High inflation is hitting people on fixed disability benefits hard | CBC News. The article focussed on the impact of rising inflation on persons with disabilities in Canada. The article highlighted that assistance is not keeping up with inflation for persons with disabilities in Canada who are on fixed incomes. The article also pointed out that the Government of Canada committed to introduce the Canada Disability Benefit. The issue and similar news stories could arise again in the current high inflation context.

On June 2, 2022, the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough, reintroduced in the House of Commons the Canada Disability Benefit (CDB) Act, Bill C-22. This Act is framework legislation, establishing the benefit and enshrining the main objective of the benefit which is to reduce poverty and support the financial security of working-age Canadians with disabilities by supplementing existing income support measures, such as provincial and territorial social assistance. The details of the benefit will follow in regulation. This approach will allow the Government to continue engaging on the specific design of the proposed benefit while the Bill moves through the parliamentary process.

As currently envisioned, the benefit would:
• Supplement existing federal, provincial and territorial (F-P/T) income support;
• Help address inequalities in accessing the current F-P/T social safety net;
• Minimize negative impacts on work incentives; and
• Be income-tested

Engagement:

In the spirit of “Nothing Without Us,” where persons with disabilities have demanded to be included in the development of policies and programs that affect their lives, the design of the proposed CDB is being informed by ongoing stakeholder engagement.

The Government has also hosted a series of roundtables with persons with disabilities, national disability organizations, disability service providers, organizations representing racialized persons with disabilities and disability researchers to seek input on key questions related to the design and delivery of the proposed benefit.

In addition, funding agreements are being put in place to support disability organizations and national Indigenous organizations to engage their members on the Disability Inclusion Action Plan and the proposed benefit.

P/T governments are critical partners in developing the proposed CDB. F-P/T Ministers Responsible for Social Services met for an initial discussion on the DIAP and the proposed benefit in July 2021. Bilateral and multilateral engagement at all levels with provinces and territories has been ongoing. It is expected that F-P/T Ministers Responsible for Social Services will meet again in late-Autumn 2022, where the proposed benefit is expected to be a priority agenda item

Employment Strategy for Persons with Disabilities

Budget 2022 announced an additional $272.6 million over the next five years to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund for Persons with Disabilities. The Fund aims to assists persons with disabilities to prepare for, obtain and maintain employment.

Canada Pension Plan
The main focus of Canada Pension Plan (CPP) Disability benefits is to partially replace the earnings of contributors who are unable to work regularly at any job because of a severe and prolonged disability.

CPP Disability benefits are not meant to replace all of a person’s income; rather, they are meant to be one component of a person’s income replacement. They are supplementary to other forms of assistance, such as private disability insurance plans, provincial social assistance benefits, workers’ compensation programs, and private investments and savings.

The amount of the CPP Disability pension will vary for each beneficiary according to how much and for how long they contributed to the CPP. This amount is adjusted annually for inflation and includes a flat rate component of $524.64 (in 2022), and an earnings-related component based on 75 percent of the contributor’s retirement pension.

To account for any rise in the cost of living, CPP benefit amounts are increased each January to ensure that the purchasing power is maintained, as measured by the Consumer Price Index (CPI).

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