Disability without Poverty Posted Update

Federal Updates

Budget 2025 Highlights

The government tabled Budget 2025 on November 4. Here’s what we saw related to disability poverty: 

• New one-time $150 payment

  • Budget 2025 introduces a one-time supplemental payment of $150 to help offset the cost of applying for or renewing the Disability Tax Credit (DTC).

  • Applies only to people who qualify for both the DTC and the Canada Disability Benefit (CDB).

  • Retroactive to the launch of the CDB and expected to roll out by the end of 2026–27.

  • Intended as an administrative fairness measure - easing costs for those already in the system, not expanding eligibility.

• Income exemption for the CDB

  • The government will introduce legislation to exempt the CDB from being treated as income under the Income Tax Act.

  • Ensures recipients can keep the full value of their benefit without clawbacks from other federal income-tested programs (e.g. the Canada Child Benefit).

• Commitment to review the DTC program

  • The government reaffirmed its promise to review and reform the DTC application process, but no details or timelines were provided.

  • DWP will advocate for meaningful participation of persons with disabilities in shaping this review and for a more accessible, transparent, and equitable process.

• Top-Up Tax Credit (new measure)

  • To prevent unintended tax increases from the middle-class tax cut(Bill C-4), Budget 2025 introduces a Top-Up Tax Credit.

  • The credit ensures that individuals whose non-refundable tax credits exceed the first income-tax bracket threshold ($57,375 in 2025) are not penalized by the gradual reduction of the base credit rate (from 15% → 14.5% in 2025 → 14% in 2026).

  • This measure will maintain the 15% rate for qualifying credit amounts above the first bracket threshold.

  • The Top-Up Tax Credit applies from 2025 to 2030, protecting those with large credit claims (e.g., high medical expenses, tuition, or credits for dependents).

Provincial Updates

British Columbia

British Columbia removes barriers for couples on disability assistance

• Starting December 1, 2025, couples in B.C. who both receive disability assistance will be eligible for the same support rate as two single individuals. Then, beginning January 1, 2026, couples where one partner has a Persons with Disabilities (PWD) designation will benefit from increased annual earnings exemptions - rising from $19,440 to $23,400.

• These changes will automatically apply - no application required - and will affect more than 6,500 families for the support-rate change and over 4,300 families for the earnings exemption increase. 

Alberta

Alberta Disability Assistance Program (ADAP): What’s at Stake?

• Proposed $200/month cut to AISH benefits

  • The Alberta government has proposed replacing Assured Income for the Severely Handicapped (AISH) with a new Alberta Disability Assistance Program (ADAP) starting July 1, 2026.

  • Under the proposal, monthly benefits would be $200 lower — a 10% cut that would push many Albertans with disabilities deeper into poverty.

• Other recent financial pressures

  • This comes after a $200 clawback of the new Canada Disability Benefit and a $220/month rent hike for AISH tenants in community housing.

  • At the same time, MLAs increased their own housing allowance by 14%. 

• Employment supports can’t replace income security

  • While new funding for employment supports is being introduced, it does not offset the loss in monthly benefits or the proposed cuts to employment income exemptions.

  • Most adults with disabilities face systemic and attitudinal barriers to employment, and the ADAP proposal would only heighten financial insecurity and administrative burdens.

• Legislation expected this November

  • The Alberta government is expected to introduce legislation in November 2025 to replace AISH with ADAP, with regulations to follow in early 2026.

• How to take action:

  • Inclusion Alberta has launched resources to help Albertans speak out: 

    • ADAP Fact Sheet – outlines how ADAP would deepen poverty and erode fairness. 

    • Talking Points (Plain Language) – to help guide conversations with MLAs.

    • Action Toolkit – instructions on how to write to Premier Smith and Ministers, or request a meeting with your MLA.