005. Understanding the Canada Disability Benefit (CDB) – and Alberta’s Clawback

Episode Summary:

In this episode of We Advocate, Gordon and Annie unpack the new Canada Disability Benefit (CDB) — what it is, who qualifies, and why many Albertans on AISH are feeling confused, frustrated, and let down. They walk through how the benefit is supposed to reduce poverty for working-age Canadians with disabilities, and how Alberta’s full clawback and upcoming ADAP changes leave many people worse off than they expected.

Why this matters:

If you or someone you love is:

• on AISH
• applying for or receiving the Canada Disability Benefit
• trying to understand how the CDB, DTC, AISH, and ADAP all fit together

…this episode will help you see the bigger picture:

• why you might be seeing no net gain from the CDB in Alberta
• how to protect yourself with documentation and clear communication
• where and how you can add your voice to the push for change

Key Takeaways:

• The Canada Disability Benefit (CDB) was created to reduce poverty for working-age Canadians with disabilities by adding an extra $200/month — but the rollout has created confusion and frustration for many Albertans.
• Eligibility for the CDB requires approval for the Disability Tax Credit, being between ages 18–64, and having low family income. Not everyone with a disability will qualify.
• Alberta is the only province clawing back the full $200, meaning AISH recipients see no financial increase despite the federal intention for this to be a supplemental benefit.
• Communication with AISH is now critical — especially for those still applying for the DTC or waiting on a CDB decision. Updates must be sent proactively and in writing.
• People without strong supports are at high risk, as many may not understand the letters, requirements, or deadlines — and could lose money simply because they can’t navigate the system.

Memorable Lines:

“People with disabilities were excited to finally feel seen — and then Alberta said, ‘Thanks, we’ll take that.’”

“The CDB was designed as a supplement, not a substitute. Every other province understands that.”

Resources & Links:

Government of Canada – Canada Disability Benefit (CDB) Overview
Information on eligibility, application process, and benefit calculations.

Disability Tax Credit (DTC) – Government of Canada
Full details on the DTC, the forms required, and how to apply.

Disability Tax Credit Application (T2201 Form)
Download or complete online before applying for the CDB.

Call to Action:

• Subscribe on your favorite podcast app to catch upcoming deep dives on eligibility, transitions, appeals, and planning.
• Share your story: We’re gathering real experiences from Albertans affected by AISH/ADAP. Email or message us on social.

Disclaimer

This episode provides general information, not legal advice. For guidance on your situation, please consult a qualified professional.

Transcript

Welcome to We Advocate, the podcast where we dig into the policies that shape the lives of people with disabilities in Alberta and across Canada. And that's relevant for today because we're going to be talking about the Canada Disability Benefit, which is a federal program. My name is Gordon Vanderleek. I'm the founder and managing lawyer of Vanderleek Law, but also work with our team to advocate for the rights of those with long -term disabilities and joined,
as always, by my co -host, the lovely Annie van der Leak.
Welcome, Annie, to the podcast. Thank you, yeah. I'm excited about today's topic.
I found a lot of people were just very confused, angry, and oftentimes feeling like they were excited about something and then felt again.
We talked about the Canada Disability Benefit, so we may refer to that as the CDB,
and this was a new federal program supposed to help lift disabled Canadians out of poverty. So we want to do just a little bit of a deeper dive into that program,
so everybody has a basic understanding of that particular program.
So let's break down what is happening in that program.
So I thought first a little bit of background for the program itself. I guess if
we're looking at the overall goal of the program, if, you know, listening to what
was put out by the federal government is, it was designed to top up the income for
people with disabilities and really with a clear goal of reducing poverty and
improving financial security. So I guess a little bit of the history and the purpose
of the CDB program. First of all, it's for working age person.
So it's not, if you're under, it's for people from 18 to 64.
But for acknowledging that if people are in that category, but they do have a
disability. They're going to face higher rates of poverty and greater barriers to
employment compared to non -disabled people. So the federal government said, hey, we want to do something about that and we want to provide a little bit of support. I think if you look at the people who are advocating, they were hoping almost for kind of a minimum income type program, right? Everybody's going to get a certain amount of money. And we'll get into the dollars and cents, but it's a small monthly amount. I guess it's a step in the direction of providing additional supports on that. And I wanted to just add, I think the exciting part of that was that we saw the federal government really noting that people with a disability were not at the level they should be in order to care for themselves and that they saw that and said, I think we need to provide this additional $200 to make it so that they are
able to sort of cover their costs. So it was an exciting thing to see that that
someone was acknowledging that. Yeah. And so what happened is they brought it in, but they never talked about the details of how much money it was going to be. And then later through regulation brought in, you know, said this is how much is going to be to start with, but hopefully it's a program that improves over time on that. But it really, as you say, shone a light on the inequities for people with
disabilities, whether, you know, they have increased unemployment, they have workplaces that are not accessible if they have mobility issues. There was extra costs associated with just what we take for granted in terms of day -to -day living. It's just harder for them and more costly. So that's where I think community
It talked about having a new benefit, better employment supports, and improved
eligibility systems. So fast forward to June 22 of 2023, the Canada Disability Benefit Act received royal assent. So we can put a link to the actual legislation in the show notes, but that's when it came into effect. It stated purpose was to reduce poverty and to show the financial security of working age persons, or support the financial security of working age persons with
disabilities. And then the regulation came into effect in 24, 25 for applications
opened in June of 2025, and payments began in July of 2025 for approved applicants. So let's talk a little bit about, and you alluded to that earlier, Annie, with
regard to the monthly cash benefits, even though there was hope that it was going
to be a much larger sum, you know, I guess, you know, in terms of coming up with a budget for this and what the government could afford or what they wanted to start with, it's, as you mentioned, it was $2 ,400 a year or $200 a month for eligible individuals for 2025. I guess so that started in you're in the seniors program and part of like 65 or over, then it'll be a scenario where this would not be applicable. Another key aspect, and this is going to tie into the, what Aisha has done with this, you must be eligible for the disability tax credit. That's a federal program, not a provincial program, but the federal government has said, we are going to support Canadians with long -term disabilities and their criteria for determining who qualifies and who doesn't is eligibility for the disability tax credit. Well, probably in a future, I think we were talking in advance that that whole topic is probably deserving of a podcast or two to get into the details of the disability tax credit. But
unfortunately, if you're not eligible for the disability tax credit, you don't get
the Canada disability benefit. That is a key criteria. As well as you have to have
low income for that. And just briefly, again, we'll put details in the show notes.
But in this situation, it's really for people who are low income,
right? So if you have a disability but you're able to work and earn a decent
income, you're not going to be eligible because you make too much money. So there is an income test on there. According to the published guideline, and they talk about adjusted family net income or AFNI, you'll get the full benefit, which is the $200 a month or $2 ,400 a year. As a single person, if you're making less than approximately $23 ,000 for a couple so that if you're married or living with a partner, then the full benefit would be if you're earning less than $32 ,500. So when you do the application, they're going to look at your tax returns. So you have to make sure those are filed, and then they'll plug in how much you would be entitled to. So there is a more complicated process. they're going to calculate it.
They are going to look at your total family income. They're going to look at what
your spouse or partner makes. So there's an example that if you have a long -term
disability, but your partner is holding down a good job and making good money,
you're not going to get the $200 a month, right? So it's not for everyone. There
may be lots of reasons why you would not be eligible for it, but those are the
key criteria. that's the H program or assured income for the severely handicapped, but they saw it as supplemental. But of course, they don't have, under the British North America Act, the authority to tell provincial governments what to do,
but there was a strong encouragement to say, well, this is supposed to be on top
of what everybody else is earning. So that was certainly the expectation.
And we'll get into kind of how Alberta has treated that in a minute.
But acknowledging the amount of money there, acknowledging, you know,
there's some income tests to be to be looked at and that it was supposed to be
supplemental. I think it's fair to say that this was a pretty significant milestone
in terms of federal programs, Canadian programs that are helping the disabled.
Many people will call it, you know, historic like the introduction of the Canada
pension plan or, you know, other medical assistance programs that are out there.
So, you know, you can look at it sort of in comparison to the introduction of our
DSPs, a registered disability savings plans in 2008. The government from time a time
says, hey, Canadians are struggling. And interestingly, this certainly came in the
context of the COVID pandemic, right, an increased costs and mobility issues and
saying we should do something for the disabled community. And there was a heavy
lobby on this. And they said, no, we want to do this. And this is right to be
able to do that. Well, I think just from what I had said at the beginning,
it made, I think, oftentimes people with a disability feel very invisible. And the
federal government was saying, no, we see you. We want to recognize that people with
a disability should receive an adequate income. And so we're saying that we're going
to give an additional amount. So It helped to be seen by people with a disability.
And so some of the things that have happened after that have changed
sort of that, where, again, they're being made to feel that they
aren't to receive this amount. And we'll talk a little bit about that with Aish,
about what Aisha's done. Yeah, so here's where the rubber hits the road.
So you go, well, that's a great program, Gordon Annie. What about this, $200? It's
a small amount. I mean, some would argue $200 a month doesn't go very far. If you
look at the cost of groceries and rent increases and transportation and other
expenses associated with day -to -day living.
But the reality in Alberta, and we've mentioned it before in other podcasts,
is the EAS program. So in Alberta, they fully claw back the $200.
And we're going to get into how they're implementing that in a second. But I just
want to deposit the thought to say all the provinces and territories, other than
Alberta have said, yes, you should get this federal supplement, you know,
this extra $200. So whatever we give you out of the provincial coffers, we want to,
we acknowledge that you're allowed to keep it and we're not going to claw it back.
You know, so that's, I think, where everybody's up in arms. And
Certainly I've even shared on social media that it's, I think, abhorrent on the part
of the government to say, we're going to take that thank you very much to help
reduce the cost of the provincial program.
The government in its press releases has said, well, the federal government is now
paying their fair share of the Eich program. Well, it's not the provincial,
it's not the federal responsibility to run the provincial programs, right? This is a
federal program and each province runs its own program. But they positioned it as
saying, well, we've been advocating for so long the Fed should pay us more to
support people with disabilities. Right. And like you said, it, it was put in place
to be something supplemental. Like that was the whole intent. And then Alberta said,
well, thank you very much, but we're going to take it. And some all
coffers, if you will, which is running into the millions of dollars.
It's projected.
So I think what, for me, when I use the word abhorrent,
is it's particularly so in the context of every single other province and territory
has done something different, right? So we stand alone and say, we're going to take
that money. So I think, yeah, if you're a lawmaker, I think you have to look very
closely in the mirror and saying, well, why are we doing something different than
every other province and territory in this federation? I think that makes us stand
alone. I don't think that makes us a shining example of how to treat people with
disabilities. And of course, in other episodes, we've talked about the new ADAP
program, a disability assistance program. So now on top of the clawback, you don't
get the benefit of the $200, but you are also facing a decrease coming in in 2026
of the amount of the provincial program. So the government is almost a two -pronged
approach to reduce the financial responsibilities for supporting Albertans with
disabilities. They're taking the $200 that the federal government has granted, which,
as you say, was supposed to be a supplement to income and supports. And on top of
that, we're going to reduce it by $200. Interestingly, it's the same number,
right? The new Aish benefit in 2026 is going to be 1 ,940,
and the reduced program under ADAP is going to be 1 ,740.
So exactly $200 difference. What's interesting is, it's curious why they pick the
200. I guess we won't know until we get Jason Nixon on the podcast to explain
these things.
But a lot of people I've talked to are not aware of this clawback because they
assume that, well, if Aisha is going down by 200, at least it's made up by virtue
of the federal government's kicking in $200. So at least a person would be whole,
right? You get 200 from the feds, 1740 and 2026
from the provincial government, so you still end up about, you know, a little over
$1 ,900 a month, which is kind of what you have now. But it's like, instead of
going to $2 ,100, we're, and getting that $200, which would go a long way to paying
for groceries and rent increases and the like. They're saying, we think we should
reduce our budget deficits or, you know, increase the general revenue of the
government and receive it.
was going to be taken off H, this as a benefit. So why would I apply for this
when there was no benefit to it?
And that was kind of the start. I heard that a lot. It was kind of like I don't
think I'm going to apply because why would I?
And I think there was a misunderstanding as well that do I have the disability tax
credit or no, not. they didn't necessarily see right away that disability tax credit
was sort of the foundation to your ability to get the Canada disability benefit. So
I heard a lot of that in the summer of 2025. And then when they became more
forceful with a letter to everyone saying,
you have to have applied by September 5th of 2025, or we are going to
And again, at the end of all of that,
have really no benefit to them to do that, but have these additional costs to have
that done. So on that, I think that's the excellent point.
Let me just kind of reinforce it, maybe looking at it from another angle. I had a
number of conversations with people who said, well, why would I apply for the
candidate of disability benefit if it's going to be fully clawed back? There's no
advantage.
And they got stricter on it as the policy evolved. At first they had this general
sense of, well, you know, we encourage you to apply for the Canada Disability
Benefit, even though you're not going to get it, because we want it. Because they
need everybody who's eligible, everybody on age. So, 79 ,000 people in Alberta have
to apply for the Canada Disability Benefit and at least try. But then they got
stricter and said, well, if you don't do.
So I just, we wanted to posit that thought there. I know at the time of this
recording and when you're going to listen to this, when it's aired, that date is
already come and gone. So we'll talk in a second a little bit about ongoing
communication. But effectively, my analysis of this as the government has harnessed 79
,000 workers being the people on Aish to do their work, right?
Now, in fairness, there's always been a program, always been part of the program,
the age program, that you have to apply for other benefits. So if you're eligible
for other programs like the federal disability program, you're supposed to apply for
that and seek other sources where you might be eligible.
It just wasn't, it wasn't very kind. It was very heavy -handed and came across that
way, saying, but you have to do that. In a way, they're enforcing what their rule
always was, which is you have to apply to these programs, but there was strong
distaste. I think for most people going, what, I'm not going to benefit it, but
I've got to do all the work to go get it. And as you say, it's not a simple
fill out a form. there was an application process, right? You could do it online or
you can fill out over, you can call somebody. So they had lots of different, the
federal government set up lots of different ways in which you could apply for it.
But the government says you have to do that and then give us the money. Well,
actually on a practical basis, what happens is you might get a check for $200 and
then you're going to get less from the provincial government. But what you need to
remember is AHA is a program for people with a disability. So what's happening is a
letter came in August saying this is what you need to do. If you have someone
who's sort of advocating for you, maybe that person could assist. Again,
I think oftentimes people who are assisting are also overwhelmed with sort of all
they need to do for the person with a disability. But if you're someone who doesn't
have supports and you have a disability, do you truly understand what you need to
do? And without understanding, no age worker is going to sort of help you with the
process. So all of a sudden you have these people who don't really understand what
they need to do, but get money now removed because they haven't done what they
don't understand. And so I think all of a sudden people were up in arms,
and I think there's going to be people on age who really truly don't understand why
they're receiving less money. Yeah, and there's nobody there advocating for them,
right? What if they don't have family members surrounding them to do this type of
work? And we see that all the time, right? That obviously we deal with families
that have children with long -term disabilities as part of our practice, but there
are a ton of people, and I've
and difficult to sort of work their way through and just to understand it. What
about those that lack that kind of cognitive ability to appreciate this and they're
not necessarily going to take action? They're going to maybe just accept less and
have to live with it, right? And even reduce, even be lower in the poverty levels
than what they are because of that. But I think one of the takeaways, you know, I
want to emphasize in this segment of the podcast is the communication is the key.
I haven't had specific conversations, but I could see people falling into maybe a
sense of, well, I communicated on September the 5th, so now I'm done, right?
Depending on the circumstances, there may be ongoing communication that's required. So
in that situation, you either applied and got it and then there's, you know, then
you just, there'll be the regular clawback. But if you've applied and you're still
in process, you have to keep them informed of what's going on. Or if you applied
and were declined, then you need to inform them. So I think it's that middle
segment that is going to be more work to get qualified. You have to submit more
information or they're asking questions or you're in the middle of trying to get the
disability tax credit, which quite frankly, and we probably should do another episode
on it, is, you know, that could take four to six months or longer, right, to apply
for the disability tax credit. So you have to continue to inform the age department,
you know, your caseworker as to what the status is. It's an ongoing obligation to
communicate whether you're doing that on your own behalf, if you're an ACE recipient,
or if you are the guardian of somebody under Aish, or the person who's the
financial administrator under Aish, then these are positive obligations that you just
have to be mindful to keep them informed of what's going on along the way. They
don't really tell you, well, how often, but I mean, it's probably good to check in
with them. Do you have any tips for our listeners, Annie, with regard to how you
might counsel them to
You have to kind of tell your story again because it's not someone who knows you
particularly. And so it's just really important that you let them know when
anything's happening. So if there's approval or decline or anything that you're
providing something, but it's also very wise to do it in writing so that you can
say you can go back when they claw something back or say you haven't done something
where you can say, well, actually I sent an email on this particular day, and I
acknowledge, you know, receipt was acknowledged by Aish, because that is what happens
right away. When you're sending an email, you'll get an acknowledgement receipt. And
so you can show that you've done sort of what was needed. But again, I go back to
the fact that, you know, if someone does not have the cognitive ability to sort of
understand or to be able to process or be able to do the steps needed,
is there someone to sort of assist from H? And,
you know, and oftentimes a letter that's received by someone,
is it really truly understood?
And the problem is oftentimes, then it's coming from the point of view that you
somehow are trying to fraud the government by not doing it or not giving us
information, where oftentimes it's that they just didn't understand that that's what
they were supposed to do. I'm going to imagine that there's going to be lots of
friction where the communication is not received. They automatically do the clawback,
and you have to go back to them and go, I did communicate, and that clawback was
inappropriate. So be, I guess, encouraged listeners, if you're in a caregiver role or
are a parent of a child with, you know, that is facing these issues, make sure you
have the documentation because you may have to go back to them and say, well,
here's a copy of the email, or I wrote a letter, right? And we're used to that
because that's sort of part of the practice of law, right, where we put things in
writing and you write letters and you send it. So there's proof of that
communication.
I'm going to highly support what you're saying. There is risk if you just simply
leave a voicemail message and say, well, now you're done, right? Are you going to
prove that you left that voicemail message? So it's got to be, you got to confirm
it. You've got to create that kind of in legal circles, we call it the paper
trail. I think that's really
to come back. And so you have to be careful. Don't spend the money. Correct. Yeah,
maybe set it aside if you know, well, they're just, the paperwork is catching up.
Recognizing this is a new program for them, they're, you know, they're all new
rules. People are trying to figure this out. And arguably, they're a little
understaffed as normal, typical government program. I guess in this last segment,
Annie, let's turn a little bit in terms of, well, how do we move forward with
regard to this because it feels a little bit like, well, there's sort of nothing we
can do. But I want to remind our listeners that I think we've got another eight,
nine months before the implementation of the ADAP program is going to be, there's
planned protests, there's ongoing advocacy and encouragement of the government to
rethink its policies. And I would hope that pressure can be brought to bear to have
the government rethink the full clawback of the Canada disability benefit on that.
Again, we don't know, and sometimes it feels like you're kind of fighting City Hall,
as the saying goes, and it's kind of meaningless, or it's not going to be met with
success. But I think it's still important, you know, as advocates within the
disability community that we continue to shine a light on the fact that Alberta
stands alone in the Federation as the only province to have done this. And that
encouraging them, maybe they will give a concession and say, fine, we'll let you
keep it. Maybe as part of the pressure, but they're not going to do that unless
there's pressure that's applied.
They've made this rule. The only way they're going to change it is if they feel
public pressure is there. So I would say it seems like it's maybe a difficult task
and one that would be not likely to succeed, but I think you still have to
advocate. I think you still shine a light on the fact that this is not fair. Like,
why are you doing this? This doing this. This is not the way to treat people, and
particularly saying people in Alberta are getting a very different stance than people
in other provinces with the same disability in the same situation. They're treated
differently because of this clawback. And I guess the other point, and then maybe
you can respond, would be The view is always that,
hey, we're pretty generous in Alberta, and we have generous support levels that are
in place. But the reality is because of the clawback and with the proposed
reductions, we are falling off that pedestal. I think it was always proud to say,
hey, we're leaders in Canada. We're showing the other provinces what should be in
terms of how you treat people with disabilities. And now it feels like we're not
that example anymore.
But I think we need to continue the vigilance in advocating for the exemption of
the CDB that $200 a month would go a long way for helping people, especially in
this inflationary time, and it would line us up with other provinces and territories.
Yeah, because I think the start when Alberta had decided to claw back that 200,
it was very much because we were above the threshold that the federal government
sort of looking across.
26, we will actually be below that amount with ADAP going down,
that 200. And so, again, that could be the argument very much on, but this is why
you said it was put into place, and now that's changed, so we need to receive that
200 now.
So we'll see what happens with that.
So, again, I think it's a very important, I think knowledge is power.
So advocacy starts with just knowing what it's all about and that as we talk about
it, hopefully with each other, but also with our friends and family, hopefully we
can fight against us together. So that's it for our episode today of We Advocate.
If you're affected by the CDB clawbacks, please reach out on our social media,
message us. We'd love to hear your stories on that. And, of course, subscribe for
future episodes so you don't miss any. And I'll also say in this as we close is
we do want to hear from people. We're hoping in future episodes that we might be
actual, you know, we can talk to real people who are affected by this and families
that are that are affected by this and the impact, because I think that's where,
um, where it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's, it's,
is not necessarily getting out there. So we're hoping that we can shine a light on
some of that. So if you'd like to share your story and talk with us, uh, just do
reach out. We'd love to have that, uh, conversation. So thanks So thanks for
listening. And until next time, I'm Gordon. I'm Annie. And we advocate.