Question Period Note: DISABILITY BENEFITS PROCESSING TIMES
About
- Reference number:
- VAC-2025-QP-00001
- Date received:
- Jun 13, 2025
- Organization:
- Veterans Affairs Canada
- Name of Minister:
- McKnight, Jill (Hon.)
- Title of Minister:
- Minister of Veterans Affairs
Suggested Response:
• The Government is fully committed to the health and well-being of Veterans and their families.
• Over the last nine years, Veterans Affairs Canada experienced a 92% increase in the number of applications received for disability benefits.
• From March 2020 to March 2024, thanks to the help of additional temporary employees dedicated to the disability benefit decision-making process, the Department reduced the backlog of applications by 75%, from 22,138 to 5,637. The backlog then increased to 11,247 by March 2025.
• A contributing factor for the recent rise in the backlog is a 7% increase in the number of applications received in 2024-2025 compared to the previous fiscal year.
• The Department is taking this issue seriously and is working on a number of actions to reduce the backlog and to make decisions faster for Veterans and their families. This work includes the development of a long-term resourcing plan; automating some of the tools used in the decision-making process; and modernizing services through digital transformation.
Background:
Current State (March 31, 2025):
Between 2015-2016 and 2024-2025, Veterans Affairs Canada experienced a 92% increase in the number of applications received for disability benefits.
As of March 31, 2024, the Department reduced the backlog of applications by 75%, from 22,138 as of March 2020 to 5,637. However, the backlog increased to 11,247 as of March 31, 2025.
Unfortunately, our service standard also declined for the 2024-2025 fiscal year, where we met the service standard for first applications 47% of the time (69% in 2023-2024).
A contributing factor for the recent rise in the backlog is a 7% increase in the number of applications received in 2024-2025 compared to the previous fiscal year (average 7,200 applications per month compared to 6,700 per month, respectively). This increase, combined with a loss of some trained decision-makers, has impacted the recent improvements in processing times and reductions to the backlog.
Despite the decline in the service standard results, the number of applications completed increased by 6% in 2024-2025 when compared to the previous fiscal year (55,700 to 58,900).
Additionally, since 2021-2022, we reduced the average processing time for first applications by 47% from 39.7 weeks to 20.9 weeks in 2024-2025 (20.2 in 2023-2024).
Applications are fast-tracked for those who are medically at risk (e.g., palliative, advanced age, etc.) or who have an immediate, unmet health need related to their claimed condition.
Veterans Affairs Canada Action:
Reducing processing times for disability benefit applications is a priority for Veterans Affairs Canada.
To keep pace with the rise in demand, the Government committed to a series of temporary funding measures for resourcing and automation.
On November 3, 2023, the Government announced additional funding of $164.4 million. Part of this investment ensured that Veterans Affairs Canada was able to retain existing trained temporary employees, dedicated to processing disability benefit applications, until March 2026.
With temporary funding set to end after March 2026, the Department continues to work on a long-term resourcing plan. This plan will reflect a technologically supported process that will have the flexibility to ensure effective and efficient delivery of services.
The Department is also working on additional initiatives designed to reduce the backlog and to make decisions faster, such as automating some of the tools used in the decision-making process and modernizing services through digital transformation.
Additional Information:
Q1 - What is the current number of backlog applications and total number of pending applications for disability benefits?
Between 2015-2016 and 2024-2025, Veterans Affairs Canada experienced a 92% increase in the number of applications received for disability benefits.
As of March 31, 2025, the total number of disability benefits applications pending was 41,577. Of the total pending, 11,247 applications were over the service standard (i.e., backlog).
It is important to note that 79% of the total pending first applications are from returning applicants for another/new condition.
A contributing factor for the recent rise in the backlog is a 7% increase in the number of applications received in 2024-2025 compared to the previous fiscal year.
Despite this increase, the number of applications completed has increased by 6% in 2024-2025 compared to the previous fiscal year (55,700 to 58,900).
Q2 – What are the service standard results for disability benefits first applications?
Veterans Affairs Canada’s service standard for disability benefits applications is 16 weeks for first applications and reassessments, and 12 weeks for departmental reviews, 80% of the time.
All processing times and service standard results for disability benefits represent the time between when we receive a complete application and when a payment is made (for favourable decisions).
Some files are very complex and therefore, take a longer time to process. Complex conditions require the expertise of someone with a medical background, or medical knowledge, to arrive at a decision.
Veterans Affairs Canada had made significant improvement towards achieving the disability benefits service standard in 2023-2024 when 69% of first applications were processed within the 16-week service standard (30% in 2020-2021, 46% in 2021-2022, and 55% in 2022-2023).
Unfortunately, our service standard for first applications has declined to 47% in 2024-2025.
A contributing factor for the recent rise in the backlog is a 7% increase in the number of applications received in 2024-2025 compared to the previous fiscal year (average 7,200 applications per month compared to 6,700 per month, respectively). This increase, combined with a loss of some trained decision-makers, has impacted the recent improvements in processing times and reductions to the backlog.
Q3 – On average, how long are decisions taking?
For the 2024-2025 fiscal year, the average processing time for first applications was 20.9 weeks (20.2 weeks in 2023-2024).
Since 2021-2022, we reduced the average processing time for first applications by 47%, from 39.7 weeks to 20.9 weeks (2024-2025).
Q4 – What is the Department doing to address the recent decline in the results previously achieved in addressing the backlog of applications?
The Department continues to work on a long-term resourcing plan. This plan will reflect a technologically supported process that will have the flexibility to ensure effective and efficient delivery of services.
VAC is also working on additional initiatives designed to reduce the backlog and to make decisions faster, such as automating some of the tools used in the decision-making process and modernizing services through digital transformation.
Additionally, The Mental Health Benefits (MHB) initiative, launched in April 2022, provides immediate coverage to Canadian Armed Forces Veterans for treatment of certain mental health conditions.
The goal is to support Veterans’ mental health while their disability benefits application is being processed. Coverage lasts for two years from the date we receive a disability benefits application or until a Veteran receives a favourable disability benefits decision. Since implementation of the MHB, over 25,000 Veterans have been made eligible for Mental Health Benefits.
Q5 – Is the number of applications stabilizing?
The number of applications received continues to increase and is not stabilizing. Total disability benefit applications received were:
2024-2025 (86,000); 2023-2024 (80,000); 2022-2023 (73,000); 2021-2022 (66,000); 2020-2021 (46,000 – pandemic year); and 2019-2020 (63,000).
In 2019-2020, the number of applications received averaged 5,200 applications per month and rose to an average of 6,700 applications per month in 2023-2024. This average increased again in 2024-2025 to 7,200 applications per month.
Q6 – Is there a firm commitment for resources after March 2026? What resources are needed to get rid of the backlog?
Historically, Veterans Affairs Canada’s capacity to address the processing time issue has been a challenge due to the steady increase of applications and lack of stable resource funding.
Between 2015-2016 and 2024-2025, Veterans Affairs Canada experienced a 92% increase in the number of applications received for disability benefits. With temporary funding set to end after March 2026, the Department continues to work on a long-term resourcing plan. This plan will reflect a technologically supported process that will have the flexibility to ensure effective and efficient delivery of services.
The Department is also working on additional initiatives designed to reduce the backlog and to make decisions faster, such as automating some of the tools used in the decision-making process and modernizing services through digital transformation.
Q7 – What changes have been made so far in an effort to reduce the backlog?
On November 3, 2023, the Government announced additional funding of $164.4 million. Part of this investment ensured that Veterans Affairs Canada was able to retain existing trained temporary employees, dedicated to processing disability benefit applications, until March 2026.
The Department continues to work on a multi-year plan to modernize two disability benefits decision-making tools: the Entitlement Eligibility Guidelines (EEGs) and the Table of Disabilities (TOD). The modernization of these tools is designed to:
• apply a veteran-centric approach, using Gender-Based Analysis Plus;
• reflect advances in the disability assessment field, and evidence-based health and scientific research;
• support equitable, transparent, and consistent disability benefits decisions;
• improve the decision-making process; and
• reduce the need for additional internal consultations, which will improve the processing time for some medical conditions.
As of April 2025, 22 EEGs have been revised to provide guidance and support decision-makers. In addition, 11 new EEGs were developed for high volume or complex conditions. The TOD chapter for the Additional Pain and Suffering Compensation was published in December 2024. The review/update of the remaining TOD chapters is expected to be finished in 2025-2026.
The Department has implemented several technological advances to reduce the amount of time it takes to receive information from health providers, review relevant documents, and pre-populate decision letters. The Department will continue to explore and implement solutions that automate routine tasks and use AI to assist decision-makers to review voluminous amounts of material.
Q8 – VAC seems to be always delayed (late with applications, late in asking for increased funds, late in hiring and training, etc.). How can VAC do a better job?
Automation and streamlining will help. Eventually, staff will focus less on administrative and repetitive tasks, enabling them to render faster decisions.
VAC is also working on additional initiatives designed to reduce the backlog and to make decisions faster, such as automating some of the tools used in the decision-making process and modernizing services through digital transformation.
The Department is taking proactive steps to streamline decision-making training.
Please keep in mind that, as of March 31, 2025, 79% of the total pending first applications are from returning applicants for another/new condition.