Question Period Note: CBC news story: High inflation is hitting people on fixed disability benefits hard

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, we are also committed to establishing the new Canada Disability Benefit. 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

This Card is in response to a CBC article entitled, High inflation is hitting people on fixed disability benefits hard | CBC News. The article focusses on the impact of rising inflation on persons with disabilities in Canada. The article highlights that assistance is not keeping up with inflation for persons with disabilities in Canada who are on fixed incomes. The article also points out that the Government of Canada committed to introduce the Canada Disability Benefit.

The 2020 Speech from the Throne committed to bringing forward a new Canada Disability Benefit (CDB). As a cornerstone in the Government of Canada’s Disability Inclusion Action Plan (DIAP), the purpose of the CDB is to reduce poverty and support the financial security of working-age persons with disabilities.

The Government of Canada introduced framework legislation for the CDB (Bill C-35) in the House of Commons on June 22, 2021. Bill C-35 did not go into the details (such as eligibility criteria, application processes, or violations) but proposed that these follow in regulations. Bill C-35 died on the order paper upon prorogation of Parliament.

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

It would not:
• Replace existing F-P/T income benefits;
• Equalize or eliminate variation in income supports across jurisdictions;
• Provide any supplementary disability supports or services; or
• Be subject to P/T clawbacks.

Engagement:

In summer 2021, the Government launched an engagement process to seek input on CDB design from the disability community, benefit experts and Indigenous organizations. This included roundtables, engagement of the COVID19 Disability Advisory Group and a public survey.

Also in summer 2021, F/P-T Ministers responsible for Social Services and Disability met for an initial discussion on the proposed benefit. Ministers agreed to meet again before the end of the year to discuss further collaboration. A joint statement to this effect was released on July 21, 2021.

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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