TORONTO — The Ontario government announced plans to exempt the new Canada Disability Benefit (CDB) from being treated as income for those receiving social assistance, ensuring recipients can access the federal support without any clawbacks to their provincial benefits.
The move means recipients of the Ontario Disability Support Program (ODSP), Ontario Works, and the Assistance for Children with Severe Disabilities (ACSD) program will be eligible for the full $200 monthly CDB without a reduction to their existing provincial entitlements.
“In a time of unprecedented economic uncertainty brought on by U.S. tariffs and trade barriers, our government is taking action to keep costs down and protect Ontario families,” said Michael Parsa, Minister of Children, Community and Social Services. “This starts with safeguarding our most vulnerable, which is why we are exempting the Canada Disability Benefit as income.”
📢 Minister @MichaelParsa announced today that the #Ontario government is exempting the #CanadaDisabilityBenefit as income.
This means that people who receive the benefit won’t see a decrease in their provincial social assistance payments or entitlements. 🧵 [1/2] #ONPoli pic.twitter.com/CTnwBYnDmO
— DailyBreadFoodBank (@DailyBreadTO) May 27, 2025
The exemption aligns with Ontario’s broader strategy to reform and strengthen its social assistance framework. Recent initiatives include tying ODSP and ACSD rates to inflation and increasing the ODSP earnings exemption to $1,000 per month, allowing recipients to earn income without impacting eligibility or benefits.
The Canada Disability Benefit, administered by the federal government, provides up to $2,400 annually for low-income Canadians with disabilities. Ontario’s exemption will ensure recipients can receive this additional support in full. However, the province is calling on Ottawa to amend the federal Income Tax Act to further protect the benefit from being treated as taxable income, enhancing its impact.
Neil Hetherington, CEO of Daily Bread Food Bank, praised the announcement. “With 1 in 4 food bank clients in Toronto reporting a disability, today’s announcement will help reduce food insecurity for some of our most vulnerable Ontarians,” he said. “We join Ontario in continuing to call on the federal government to exempt the CDB from being treated as income under the Income Tax Act.”
Ontario has also maintained income exemptions for Indigenous persons receiving social assistance and financial supports for veterans through the Soldiers’ Aid Commission. These measures are part of an evolving effort to make the province’s safety net more adaptive and inclusive.
More information about the Canada Disability Benefit, including eligibility and application guidelines, is available through the Government of Canada’s website.
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