How the New Canada Disability Benefit Fits Your Situation
For people living with disabilities, government supports can feel complicated and fragmented. Between provincial programs like the Ontario Disability Support Program (ODSP), federal benefits like the Canada Pension Plan Disability (CPP-D), and now the newly introduced Canada Disability Benefit (CDB), it’s not always clear how everything fits together.
This post breaks down what the new Canada Disability Benefit means, how it interacts with existing supports, and what steps Ontarians should take to ensure they’re not missing out.
What Is the Canada Disability Benefit (CDB)?
The Canada Disability Benefit Act was passed in 2023, with applications officially opening in June 2025. The benefit aims to provide direct financial support to low-income Canadians with disabilities, reducing poverty and improving quality of life.
Some key points:
Eligibility: You must qualify for the Disability Tax Credit (DTC) to apply for the CDB.
Administration: Applications are handled by Service Canada.
Payments: The first round of payments began in July 2025. The exact monthly amount varies depending on income and other benefits received, but the intent is to “top up” incomes for those living below the poverty line.
How Does the CDB Work with ODSP?
One of the biggest concerns for Ontarians is whether new benefits will reduce ODSP payments. With the CDB, the government made a key decision:
CDB payments are fully exempt from income calculations under ODSP.
That means if you are already receiving ODSP, the new Canada Disability Benefit will not cause your provincial benefit to be reduced. Instead, it acts as an additional layer of financial support.
This is important because in the past, some federal or third-party payments were clawed back from ODSP, reducing their usefulness. The CDB is designed differently to ensure it actually improves financial security.
Step-by-Step: How to Apply for the CDB
Confirm Eligibility for the DTC
If you don’t already have the Disability Tax Credit, you’ll need to apply with medical certification from a health professional. Without the DTC, you cannot qualify for the CDB.
Apply through Service Canada
Applications are available online and in paper form. You’ll need your Social Insurance Number and banking details for direct deposit.
Provide Income Information
The CDB is income-tested. You’ll need to provide consent for the CRA to share your tax information.
Track Your Application
Processing times may vary. Keep a copy of your submission and check your Service Canada account for updates.
Appeal if Needed
If your application is denied, you have the right to request a reconsideration and appeal. This is often where legal representation becomes essential.
How the CDB Fits with Other Supports
ODSP: As noted, fully exempt.
CPP Disability: If you qualify for CPP-D, you can still receive the CDB. The benefit is meant to supplement—not replace—existing supports.
Employment Income: Having some earned income does not automatically disqualify you. The CDB is designed to lift people above the poverty line, so it may taper off as income increases.
Why Legal Guidance Can Help
While the CDB is a welcome addition, navigating the system can be stressful. Many people face barriers getting approved for the Disability Tax Credit or run into challenges with Service Canada paperwork and appeals.
At Hilborn & Konduros, we have extensive experience helping Ontarians secure the disability benefits they deserve—whether through insurance claims, CPP-D appeals, or now the new Canada Disability Benefit. If you’ve been denied or are unsure how these programs interact, speaking with a lawyer can help you protect your rights and maximize the support available.
