Regulations Amending the Canada Disability Benefit Regulations: SOR/2026-123

Canada Gazette, Part II, Volume 160, Number 13

Registration
SOR/2026-123 June 12, 2026

CANADA DISABILITY BENEFIT ACT

P.C. 2026-600 June 12, 2026

Whereas, under subsection 11(1.1) of the Canada Disability Benefit Act footnote a, the Governor in Council has taken into consideration the elements referred to in that subsection in making the annexed Regulations;

And whereas, under section 11.1 of that Act, the Minister of Employment and Social Development has provided persons with disabilities from a range of backgrounds with meaningful and barrier-free opportunities to collaborate in the development and design of the annexed Regulations;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, makes the annexed Regulations Amending the Canada Disability Benefit Regulations under subsection 11(1) of the Canada Disability Benefit Act footnote a.

Regulations Amending the Canada Disability Benefit Regulations

Amendments

1 Section 1 of the Canada Disability Benefit Regulations footnote 1 is amended by adding the following in alphabetical order:

allocation
means the benefit portion that consists of the payments that are to be made to a beneficiary as calculated in accordance with section 6. (allocation)
DTC-eligible individual
has the same meaning as in subsection 146.4(1) of the Income Tax Act. (particulier admissible au CIPH)
supplemental amount
means the benefit portion the amount of which is set out in section 6.1. (somme supplémentaire)

2 (1) The portion of subsection 2(1) of the Regulations before paragraph (a) is replaced by the following:

Eligibility criteria for allocation

2 (1) A person is eligible to receive an allocation for any month after May 2025 in which they meet the following criteria:

(2) Paragraph 2(1)(b) of the Regulations is replaced by the following:

(3) Subsections 2(2) to (4) of the Regulations are replaced by the following:

Exception — 65 years of age

(2) Despite paragraph (1)(a), a person is eligible to receive an allocation for the month in which they turn 65 years of age.

Exception — incarceration

(3) Despite paragraph (1)(d), a person is eligible to receive an allocation for the first month in which they are incarcerated and for the month in which they are released.

Condition — cohabiting spouse or common-law partner

(4) Despite subsections (1) to (3), a person is eligible to receive an allocation for any month in a payment period only if their cohabiting spouse or common-law partner has filed a return of income under the Income Tax Act for the last taxation year that ended before the beginning of that payment period.

(4) Subsection 2(6) of the Regulations is replaced by the following:

Exception — suspension of payments

(6) Despite subsections (1) to (3), a person is ineligible to receive an allocation for any month during which payment of the allocation has been suspended under section 11.

3 The Regulations are amended by adding the following after section 2:

Eligibility criteria for supplemental amount

2.1 (1) A person is eligible to receive a supplemental amount for a certificate referred to in paragraph 118.3(1)(a.2) or (a.3) of the Income Tax Act that they obtain if an allocation is paid to them after they obtain the certificate and, at the time of the payment, their status as a DTC-eligible individual is based on that certificate.

Clarification

(2) A payment to which the person is not entitled is not to be considered for the purposes of subsection (1).

4 Subsections 4(3) and (4) of the Regulations are replaced by the following:

Application before 18th birthday

(3) An application that is received by the Minister within six months before the day on which the applicant turns 18 years of age is deemed to have been received on that day.

New application

(4) If, for any given month, a beneficiary becomes ineligible to receive an allocation, the allocation ceases as of that month and they must make a new application for benefits to receive the allocation again.

5 (1) The portion of subsection 6(1) of the Regulations before the formula is replaced by the following:

Basic amount

6 (1) The amount (referred to in these Regulations as the “basic amount”) that is payable to a beneficiary for any month for which they are eligible to receive an allocation in a payment period is the amount — rounded to the nearest cent or, if the amount is equidistant from two cents, to the higher of them — determined by the formula

(2) The description of B in subsection 6(1) of the Regulations is replaced by the following:

B is the reduction based on income, calculated in accordance with whichever of subsections (2) to (4) applies to the beneficiary, taking into account subsection (4.1) if applicable, on the last day of the month that precedes the applicable month.

(3) Section 6 of the Regulations is amended by adding the following after subsection (4):

Reduction — waiver

(4.1) If the Minister waives the condition set out in subsection 2(4), the reduction based on income is calculated in accordance with subsection (2) as if the beneficiary does not have a cohabiting spouse or common-law partner.

(4) The definition adjusted income in subsection 6(7) of the Regulations is replaced by the following:

adjusted income
has the same meaning as in section 122.6 of the Income Tax Act. (revenu modifiĂ©)

6 The Regulations are amended by adding the following after section 6:

Supplemental amount

6.1 The supplemental amount is $150.

7 Sections 7 to 9 of the Regulations are replaced by the following:

When allocation begins

7 The month following the month in which a beneficiary’s application is approved under section 5 is the first month with respect to which they are entitled to an allocation.

Monthly payments

8 (1) Subject to subsection (2), an allocation is payable each month during the payment period.

Payment of twenty dollars or less

(2) If, for a payment period, the allocation payable to a beneficiary in a month is twenty dollars or less, their entire allocation for the period, being an amount equal to the basic amount multiplied by the number of months remaining in that period, is payable as a lump sum on the day on which the first payment of an allocation would have been made.

First payment of allocation

9 The first payment of an allocation that is payable to a beneficiary must be an amount equal to the sum of the payments, as calculated in accordance with section 6, to be made to the beneficiary for the period beginning with the month following the month in which their application is approved under section 5 and ending with the month in which the first payment is made.

Supplemental amount

9.1 The supplemental amount is paid as a lump sum.

8 (1) Subsection 10(1) of the Regulations is replaced by the following:

Potential ineligibility

10 (1) If the Minister has reasonable grounds to believe that a beneficiary does not meet the eligibility criteria set out in section 2 or that an inquiry with respect to their eligibility is necessary, the Minister may suspend payment of the allocation to the beneficiary until the Minister is satisfied that they are eligible.

(2) Subsection 10(3) of the Regulations is replaced by the following:

Resumption of payment

(3) If a suspension is lifted, the Minister must resume payment of the allocation and make a lump sum payment that is equal to the sum of the payments, as calculated in accordance with section 6, that the beneficiary was entitled to receive during the period of the suspension.

9 (1) Subsection 11(1) of the Regulations is replaced by the following:

Request for suspension

11 (1) A beneficiary may request in writing that the Minister suspend payment of their allocation.

(2) The portion of subsection 11(2) of the Regulations before paragraph (a) is replaced by the following:

Suspension of payments

(2) The payment of an allocation is suspended on the later of

(3) Subsections 11(3) and (4) of the Regulations are replaced by the following:

Request for resumption

(3) The beneficiary may request in writing that the Minister resume payment of their allocation within 24 months after the date of suspension. If no request to resume payment is received within that period, the allocation is deemed to have ceased and they must make a new application for benefits to receive the allocation again.

Eligibility

(4) On receipt of a request to resume payments, the Minister must resume payment of the allocation if the Minister is satisfied that the person meets the eligibility criteria set out in section 2.

(4) The portion of subsection 11(5) of the Regulations before paragraph (a) is replaced by the following:

Resumption of payments

(5) The Minister must resume payment of the allocation on the later of

10 Subsection 13(1) of the Regulations is replaced by the following:

Payment to estate, succession or heirs

13 (1) If a beneficiary dies, the beneficiary’s estate or succession or the beneficiary’s heirs are eligible to receive an allocation payment for the month in which the beneficiary died if the beneficiary did not receive the allocation payment for that month.

11 Subsection 35(3) of the Regulations is replaced by the following:

Amount of penalty

(3) The penalty that the Minister may issue is

12 Subsection 37(4) of the Regulations is replaced by the following:

No interest

(4) No interest is payable on any amount owing to His Majesty in right of Canada under the Act or these Regulations that results from an erroneous payment or overpayment.

Exception

(5) In the case of an amount owing to His Majesty in right of Canada that results from a payment that was made as a result of a violation for which a penalty was imposed under section 35 or as a result of an offence under subsection 36(1) for which a fine or a term of imprisonment was imposed under the Criminal Code, subsection (4) applies only during any period in which

13 Section 38 of the Regulations is renumbered as subsection 38(1) and is amended by adding the following:

No interest

(2) Interest on the debt does not accrue during any period in which

Transitional Provision

Benefit deemed to be allocation

14 For the purposes of subsection 2.1(1) of the Canada Disability Benefit Regulations, any benefit, as defined in section 1 of those Regulations, that was paid to a person before the day on which this section comes into force is deemed to be an allocation, as defined in that section 1, that was paid to that person.

Coming Into Force

15 These Regulations come into force on September 1, 2026, but if they are registered after that day, they come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues: To be eligible for the Canada Disability Benefit program (the program), a person must be approved for the Disability Tax Credit. As part of the application process for the Disability Tax Credit, a medical practitioner must certify the impacts of the person’s disability. Practitioners generally charge a fee for this service. As a result, people may face financial barriers to accessing the program. To offset these costs, in Budget 2025, the Government of Canada (the Government) announced it would provide a supplemental payment of $150 to program recipients.

During the implementation of the program, opportunities were also identified to clarify certain provisions of the Canada Disability Benefit Regulations and remove redundancy between the Income Tax Act and the Canada Disability Benefit Regulations.

Description: To lower barriers to accessing the program, the Regulations Amending the Canada Disability Benefit Regulations (the Regulations) will provide for a supplemental payment of $150 (the supplemental amount) for each Disability Tax Credit certification or re-certification for program recipients.

The Regulations will also amend the Canada Disability Benefit Regulations to revise the definition of “adjusted income,” clarify the treatment of income for people who are granted a spousal/partner tax filing waiver, pause the accrual of interest on debts during reconsiderations, appeals and judicial reviews, and clarify the treatment of applications for people who are near their 18th birthday.

Rationale: The supplemental amount will support the financial security of persons with disabilities who are program recipients. Over 10 years, the estimated cost to Government of the supplemental amount is $149.4 million present value (PV). This cost is expected to be almost fully offset by $138.0 million in payments of the supplemental amount to Canadians, resulting in a net monetized impact of $11.4 million in administration costs to Government. There will be gains in well-being for Canadians with disabilities that come from improved financial security.

Issues

Budget 2025 reaffirmed the Government of Canada’s (the Government) intention to lower barriers to accessing the Canada Disability Benefit program (the program) by helping to offset the costs of applying for the Disability Tax Credit. To offset these costs, the Government proposed to provide a supplemental payment of $150 (the supplemental amount) to program recipients. Changes to the Canada Disability Benefit Regulations were needed to deliver the supplemental amount.

As well, during the implementation of the program, opportunities were identified to clarify certain provisions of the Canada Disability Benefit Regulations and remove redundancy between the Income Tax Act and the Canada Disability Benefit Regulations.

Background

The Canada Disability Benefit Act (the Act) came into force on June 22, 2024. The objective of the Act is to reduce poverty and support the financial security of working-age persons with disabilities through the creation of a Canada Disability Benefit program. The details of the program were to be set out in regulations.

In June 2024, regulations outlining the design of the program, including eligibility criteria and amount, were prepublished in the Canada Gazette, Part I, for an 86-day public comment period. The final Canada Disability Benefit Regulations were published in the Canada Gazette, Part II, on March 12, 2025, and came into force on May 15, 2025.

When the Canada Disability Benefit Regulations became law on May 15, 2025, the term “benefit” described the amount payable to a beneficiary for any month they were eligible in a payment period. In this regulatory package, the term “allocation” is used to describe the monthly amount payable to eligible beneficiaries and the term “benefit” now refers to both the allocation and the new supplemental amount.

The payment period for the program begins on July 1 and ends on June 30 of the following year. To be eligible to receive an allocation payment for a given month in a payment period, a person must

The allocation payment a person receives depends on their income and that of their spouse or common-law partner, if they have one. The maximum amount for the July 2025 to June 2026 payment period is $200 per month ($2,400 total). This amount will be adjusted for inflation each July to reflect changes in the cost of living.

The program launched in June 2025. As of April 2026, over 296 000 persons with disabilities have received payments.

Supplemental amount

For a person to qualify for the Disability Tax Credit, they need a medical practitioner to fill out part of the application form (T2201 Disability Tax Credit Certificate). While there is no set amount, practitioners generally charge a fee for this service, which usually ranges around $125-$150. Practitioners may charge higher or lower than this amount and some do not charge a fee at all. In addition to these fees, people may incur other out-of-pocket expenses related to applying for the Disability Tax Credit, such as transportation costs to get to and from medical appointments.

Members of the disability community have expressed concerns about costs associated with applying for the Disability Tax Credit and the resulting financial barriers people may face in accessing the Canada Disability Benefit program. When the Canada Disability Benefit Regulations were prepublished for comment in the Canada Gazette, Part I, one of the most common concerns raised was about the barriers that persons with disabilities face in trying to qualify for the Disability Tax Credit, including medical practitioner fees and other out-of-pocket expenses.

To help offset the costs of applying for the Disability Tax Credit, Budget 2025 committed $115.7 million over four years, beginning in 2026-2027, and $10.1 million per year ongoing, for a supplemental amount of $150 for program recipients for each Disability Tax Credit certification and re-certification that results in entitlement to an allocation payment. As announced in Budget 2025, all current, past, and future program recipients will be eligible for the supplemental amount. As well, each time a recipient has a new Disability Tax Credit certification and continues to be entitled to an allocation payment, they will receive another payment of the supplemental amount.

As the supplemental amount is targeted to program recipients, persons who meet the eligibility criteria for the program but are not entitled to an allocation payment because their income is too high will not be eligible for the supplemental amount.

The supplemental amount is not a direct reimbursement of costs incurred to qualify for the Disability Tax Credit. It is intended to lower barriers to accessing the program by offsetting potential costs associated with applying for the Disability Tax Credit, which could include medical practitioner fees or other expenses.

Other changes

Definition of “adjusted income”

The Budget 2025 Implementation Act, No. 1, which received royal assent on March 26, 2026, included changes to the Income Tax Act to exclude payments of the Canada Disability Benefit program from the calculation of income.

As a result, the definition of “adjusted income” in the Canada Disability Benefit Regulations, which excludes program payments from the calculation of income, needs to be amended. This is because these payments are now already excluded under the Income Tax Act.

Spousal/partner tax filing waiver

To be eligible for the program, a person and their spouse or common-law partner must have filed an income tax return. Under the Canada Disability Benefit Regulations, the Minister can waive the requirement that a person’s spouse or common-law partner file a return if they are satisfied that this requirement is unreasonable or impracticable in the person’s particular circumstances.

The policy intention has always been that a person who has been granted a waiver would be considered single for the purpose of calculating the amount they would receive. This means they would be subject to the income threshold, working income exemption and reduction rate for people who are single, rather than those for people who are in a couple. However, this is not clearly stated in the Canada Disability Benefit Regulations.

Accrual of interest

If a person receives an amount greater than what they were entitled to, the excess is called an overpayment. An overpayment is a debt owed to the Government and must be returned. Under the Canada Disability Benefit Regulations, interest is payable on an overpayment if it results from an offence or an act for which a financial penalty (called an administrative monetary penalty) was imposed. Interest can also be charged on the financial penalty (which is also a debt owed to the Government).

The Canada Disability Benefit Regulations do not provide for interest to be paused on those debts during reconsiderations, appeals and judicial reviews of decisions, which could have negative effects.

Timing of applications

A person must be at least 18 years old to be eligible for the program. Service Canada accepts an application up to six months in advance of a person’s 18th birthday and then processes it when the person turns 18. This allows people to start receiving payments as soon as they become eligible at 18.

Service Canada does not accept any other applications in advance. This is not clearly stated in the Canada Disability Benefit Regulations and can lead to applications being discarded if they are sent in advance.

Objective

The objective of these amendments is to reduce barriers to accessing the program, remove redundancy and ambiguity in the Canada Disability Benefit Regulations, and ensure people are not charged interest on debts when exercising their right to a reconsideration, appeal or judicial review.

Description

Supplemental amount

The Regulations Amending the Canada Disability Benefit Regulations (the Regulations) will amend the definition section of the Canada Disability Benefit Regulations to

To support this change in terminology, the Regulations include a transitional provision to make clear that any amount a person received prior to the amendments coming into force will be considered an allocation. Changes will be made throughout the Canada Disability Benefit Regulations to distinguish between the allocation and the supplemental amount.

The Regulations specify that a person paid the allocation is eligible to receive the supplemental amount. This means that any person who has received an allocation payment can receive the supplemental amount, even if they are no longer eligible for the allocation. The Regulations also specify that the supplemental amount of $150 is to be paid as a lump sum.

Some recipients of the allocation are eligible for the Disability Tax Credit on a temporary basis, meaning that their eligibility expires at some point. The Regulations allow people to receive an additional payment of the supplemental amount for every additional Disability Tax Credit certificate they receive that results in payment of the allocation.

Other changes

Definition of “adjusted income”

The definition of “adjusted income” will be amended to provide that “adjusted income” has the same meaning as in section 122.6 of the Income Tax Act.

Spousal/partner tax filing waiver

Amendments will be made to clarify that a person who is granted a waiver exempting them from the requirement that their spouse or partner file an income tax return will be treated as single for the purpose of calculating their allocation payment.

Accrual of interest

Amendments will be made to provide that interest does not accrue on debts during periods of reconsiderations, appeals and judicial reviews.

Timing of applications

Amendments will be made to specify that people may apply to the program up to six months prior to their 18th birthday.

Regulatory development

Consultation

The Department engaged stakeholders extensively on the design and delivery of the program, as described in the Regulatory Impact Analysis Statement published in the Canada Gazette, Part II, on March 12, 2025, and the Canada Disability Benefit report to the House of Commons on engagement with the disability community, tabled on December 12, 2024.

While no specific consultations were undertaken in relation to these regulatory amendments, the amendments are consistent with what has previously been expressed by the disability community. Specifically, during the prepublication period, many commenters identified the costs associated with applying for the Disability Tax Credit — including travel to clinics and medical practitioner fees — as a financial barrier to accessing the program. The supplemental amount provided for in the Regulations is intended to help address these concerns. Moreover, this measure is relieving in nature and will support the financial security of persons with disabilities by lowering barriers to accessing the program.

For the reasons outlined above, an exemption from prepublication in the Canada Gazette, Part I, was granted.

Indigenous engagement, consultation and modern treaty obligations

As these regulatory amendments are technical in nature and do not affect the core design of the program, there were no consultations with modern treaty holders or other Indigenous governing bodies on this regulatory package.

Instrument choice

No alternative policy instruments are available, since the Canada Disability Benefit Act requires that all design elements of the program be established by regulation.

Regulatory analysis

Benefits and costs

The Regulations enable the payment of a supplemental amount of $150 to program recipients and clarify certain provisions of the Canada Disability Benefit Regulations, including:

The costs to the Government of paying the supplemental amount will be offset by the benefits to Canadians who receive the supplemental amount. There will be an additional cost for the Government to administer the supplemental amount. Over 10 years, the estimated net cost of these regulatory amendments will be $11,388,782 (PV), or $1,515,426 annualized, reflecting the cost for the Government to deliver and administer the supplemental amount. The net cost is expected to be offset by qualitative gains in well-being that come from improved financial security through access to the program.

No monetized costs and benefits have been presented for the other regulatory amendments because the amendments are not expected to have any notable costs, as their effect is to provide greater clarity to existing regulatory provisions. These clarifications will simplify and streamline the administration of the program for applicants, resulting in decreased complexity and confusion in accessing the program. With respect to pausing interest on debts during periods of reconsiderations, appeals and judicial reviews, the impacts are not expected to be significant, as such situations are limited. The reason being, interest is payable on an overpayment (which is a debt owed to the Government) only if it resulted from an offence or an act for which a financial penalty (called an administrative monetary penalty) was imposed. In such cases, interest can also be charged on the financial penalty. Such cases are expected to be uncommon, particularly in the first few years of implementation. For context, between 2016–2017 and 2021–2022, Employment and Social Development Canada issued only two administrative monetary penalties under the Old Age Security program and none under the Canada Pension Plan program. Both these programs have significantly more recipients than the Canada Disability Benefit program, with Old Age Security having a monthly average of nearly 7 million beneficiaries and the Canada Pension Plan having a monthly average of over 6 million payments in 2022.

The costs and benefits of the regulatory amendments (specifically, the supplemental amount) are monetized starting from 2026–2027 (the first fiscal year in which the Regulations will be registered) to 2035–2036. Results are presented in present value (PV) terms using a discount rate of 7% and are expressed in 2026 dollars. For further details regarding the methodology, a detailed cost-benefit analysis report is available upon request at the following email address: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca.

Consultations on cost and benefit impacts were conducted through previous departmental engagement on the design and delivery of the program, as described in the Regulatory Impact Analysis Statement published in the Canada Gazette, Part II, on March 12, 2025, and the Canada Disability Benefit report to the House of Commons on engagement with the disability community, tabled on December 12, 2024. While no specific consultations were undertaken in relation to these regulatory amendments, the amendments are consistent with what has previously been expressed by the disability community.

Key assumptions

Because all persons entitled to an allocation payment will receive a payment of the supplemental amount, the take-up model for the allocation must be explained first. Full details about this modelling exercise are available in the Regulatory Impact Analysis Statement published in the Canada Gazette, Part II, on March 12, 2025. As the Government had announced it would reimburse Disability Tax Credit fees in Budget 2024, the cost-benefit analysis prepared for the Canada Disability Benefit Regulations had assumed that allocation recipients would be reimbursed for these fees. This proposal fulfils that commitment to Canadians. The analysis presented here does not assume further incentivization leading to increased application volumes, as the incentive was already accounted for in the baseline by assuming that full take-up would be reached by the end of the decade.

The number of allocation recipients was calculated using linked records from the 2017 Canadian Survey on Disability and the Canada Revenue Agency’s T1 Family File. These data sources were used to develop a profile of the characteristics of those deemed eligible for the Disability Tax Credit. However, the take-up model assumed that many people who were eligible for the Disability Tax Credit had not applied for it because their income was too low to owe taxes (and therefore would not benefit from it). It was assumed that the program, once it became available, would increase the take-up of the Disability Tax Credit at lower levels of income. A model, accounting for disability type, severity and income, was developed to measure the magnitude of this behavioural response. This allowed for estimation of the number of Canadians who would be incentivized to apply for the Disability Tax Credit.

Because the program targets Canadians with modest incomes, many people approved for the Disability Tax Credit will not receive any allocation payments, as their incomes are too high. To estimate the number of allocation recipients each year, the linked tax and survey data was analyzed on a micro-level. Each Disability Tax Credit-eligible person’s net family income was calculated and entered into the calculation formulas set out in the Canada Disability Benefit Regulations. The number of people entitled to allocation payments was aggregated using survey sampling weights and further weighted to match the composition of the Disability Tax Credit-eligible population. The allocation recipient counts were also adjusted for population growth and to reflect a gradual increase in the take-up of the Disability Tax Credit, spurred by public awareness of the program.

Finally, the population of persons approved for the Disability Tax Credit, adjusted for income as explained above, was compared to existing Canada Revenue Agency administrative data to determine the number of additional persons approved for the Disability Tax Credit on a temporary basis who were likely to need to re-apply for the tax credit to remain eligible for the program each year.

Costs
Cost of supplemental amounts paid to allocation recipients: $137,980,674 (10-year PV)

Stakeholder: Government of Canada

Beginning in 2026–2027, every person entitled to an allocation payment will receive the supplement amount. For this first year, the number of payments of the supplemental amount issued will include all allocation recipients (beginning in July 2025), those who were re-certified for the Disability Tax Credit, and those who begin receiving the allocation in the 2026–2027 fiscal year.

In subsequent years, people will receive the supplemental amount if they become newly eligible and entitled to an allocation payment, and/or if they are required to re-apply for the Disability Tax Credit and subsequently remain entitled to an allocation payment. According to Canada Revenue Agency data, approximately 38% of working-age persons approved for the Disability Tax Credit are approved on a temporary basis and must re-apply, on average, every four years. This population will be eligible for a payment of the supplemental amount every time they re-apply and are approved for the Disability Tax Credit while receiving the allocation. The other 62% are approved on an indeterminate basis, meaning they are generally not required to re-apply. These persons will only receive a payment of the supplemental amount when their allocation payments start.

Thus, the annual number of recipients of the supplemental amount is the sum of

Because Disability Tax Credit applications approved on a temporary basis expire after four years on average, 25% of all allocation recipients approved for the tax credit on a temporary basis are assumed to need to re-apply for the Disability Tax Credit every year.

Finally, the amendments to the Canada Disability Benefit Regulations set the flat-rate value of the supplemental amount. Because completing the Disability Tax Credit is not an insured provincial/territorial health service, the amount was based on medical association fee schedules. Although fees vary, the Government announced in Budget 2025 that the supplemental amount would be $150.

The following table shows the year-by-year value and number of payments of the supplemental amount that will be issued, as described above. These forecasts are based on analysis conducted in preparation for the launch of the program in 2024–2025 and have not been updated, as a full payment period for the program has not yet been completed; thus, data on actual payments is not available. More details are available in the cost-benefit analysis report.

Table 1: Forecasted dollar value of the supplemental amounts paid (millions) and number of allocation recipients by year (undiscounted)
  2026-2027 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 2034-2035 2035-2036
Dollar value of supplemental amounts (M 2026$, undiscounted) $77.3 $11.5 $11.9 $8.7 $8.6 $8.5 $8.4 $8.3 $8.2 $8.1
Number of allocation recipients 515 000 77 938 82 688 61 525 62 000 62 475 62 950 63 425 63 900 64 375
Costs to administer the supplemental amount: $11,388,782 (10-year PV)

Stakeholder: Government of Canada

Cost estimates regarding the delivery and administration of the supplemental amount were developed by Employment and Social Development Canada using standard corporate costing formulas and drawing on experience delivering comparable benefits (such as the Guaranteed Income Supplement). The key input was the number of payments issued per year, set out in Table 1 above.

Service Canada will be responsible for delivering and administering the supplemental amount. Costs will be incurred to support implementation and service delivery activities, and implementation will leverage the existing program IT system to issue the supplemental amount. Cost estimates for Service Canada to deliver and administer the supplemental amount are based on the projected volumes of recipients per year and reflect a combination of estimates from across Employment and Social Development Canada. It includes the administration and payment of the supplemental amount, integrity and information technology activities, and in-person, eService, and Call Centre engagement with the public to provide information and support.

Qualitative costs

Payments of the supplemental amount will be issued in three phases beginning in September 2026, after the Regulations come into force. Most people entitled to a supplemental amount will be paid in September 2026. However, two groups of recipients will be paid in February 2027, meaning they will receive a delayed payment:

This time delay will negatively impact a small proportion of recipients who may expect to receive the payment sooner. However, this negative cost is mitigated by the fact that implementation will be stabilized in March 2027. From then on, allocation recipients will receive payment of the supplemental amount the same month they receive their first allocation payment.

Benefits
Benefit of receiving the supplemental amount: $137,980,674 (10-year PV)

Stakeholder: Allocation recipients

The quantified benefit to Canadians is the value of the flat-rate supplemental amount, which is intended to help compensate people entitled to an allocation payment for expenses they may have incurred in applying for the Disability Tax Credit. The results are shown in Table 1 above and are exactly equal to the costs of the payments to Government. There are no anticipated costs to individuals, as they will not have to take any additional actions to receive the supplemental amount.

Qualitative benefits

There are several qualitative benefits expected to result from the payment of the supplemental amount. For persons with disabilities and their family members, this supplemental amount will provide reassurance that costs incurred to access the program will be offset, thereby relieving financial pressures and concerns.

As stated above, the supplemental amount offsets a barrier to accessing the program itself. For those who receive the supplemental amount, it is expected that they will see the following improved outcomes:

Greater income will improve the ability of those who receive the supplemental amount and allocation payments to take care of their health, which may lead to positive health outcomes, less reliance on health care over the long run, and greater opportunities to participate in the labour market.

Cost-benefit statement
Table 2: Monetized benefits
Impacted stakeholder Description of benefit Base year Year 5 Final year Total (present value) Annualized value
Canadians Supplemental amounts received $77,250,000 $8,591,762 $8,079,918 $137,980,674 $18,360,134
All stakeholders Total benefits $77,250,000 $8,591,762 $8,079,918 $137,980,674 $18,360,134
Table 3: Monetized cost
Impacted stakeholder Description of cost Base year Year 5 Final year Total (present value) Annualized value
Government   Supplemental amounts disbursed $77,250,000 $8,591,762 $8,079,918 $137,980,674 $18,360,134
Administrative costs to process supplemental amounts $5,216,006 $941,960 $888,063 $11,388,782 $1,515,426
All stakeholders Total costs $82,466,006 $9,533,723 $8,967,981 $149,369,455 $19,875,561
Table 4: Summary of monetized costs and benefits
Impacts Base year Year 5 Final year Total (present value) Annualized value
Total costs $82,466,006 $9,533,723 $8,967,981 $149,369,455 $19,875,561
Total benefits $77,250,000 $8,591,762 $8,079,918 $137,980,674 $18,360,134
Net impact $5,216,006 $941,960 $888,063 $11,388,782 $1,515,426
Quantified (non-monetized) and qualitative impacts
Positive impacts

In its first year (2026–2027), the supplemental amount is expected to reach 515 000 low-income Canadians with disabilities, offsetting potential costs incurred in accessing the program and thereby supporting their financial security and that of their estimated 820 000 family members. As the program matures, additional persons entitled to an allocation payment will receive the supplemental amount, with over 60 000 benefiting each year by the end of the decade.

The supplemental amount will mitigate the impact of a financial barrier that allocation recipients may face when applying for the Disability Tax Credit so that they can access the program. For persons with disabilities and their family members, this supplemental amount will provide reassurance that the costs necessary to access the program will be offset, thereby relieving financial pressures and concerns.

In accessing the supplemental amount and allocation payments, recipients are expected to have greater income, which will improve their ability to take care of their health, which may lead to positive health outcomes, less reliance on health care over the long run, and greater opportunities to participate in the labour market.

The amendment to pause the accrual of interest on debts during a reconsideration, appeal or judicial review will positively impact some people, as it provides assurance that they will not have to pay interest on debts while exercising their right to request a reconsideration, appeal, or judicial review.

The impact of the remaining three amendments is the added clarity they provide on how to interpret the regulatory provisions concerning the definition of adjusted income, spousal/partner tax filing waivers, and the timing of applications. These changes will make the provisions easier to understand and avoid ambiguity for the purposes of administering the program.

Small business lens

Analysis under the small business lens concluded that the amendments to the Canada Disability Benefit Regulations do not result in benefits or costs for small businesses.

One-for-one rule

The one-for-one rule does not apply, as the amendments to the Canada Disability Benefit Regulations do not result in any change in administrative burden on business.

Regulatory cooperation and alignment

The Regulations are not related to a work plan or commitment under a formal regulatory cooperation forum. The amendments to the Canada Disability Benefit Regulations do not have any incremental impact on interactions with other programs.

International obligations

The Regulations are not linked to any international agreements or obligations.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a Strategic Environmental and Economic Assessment is not required.

Gender-based analysis plus

A gender-based analysis plus (GBA+) was conducted and established that the Regulations would positively affect persons with disabilities, particularly 2SLGBTQ+,footnote 5 racialized, and Indigenous persons with disabilities.

According to the 2022 Canadian Survey on Disability, 27% of the Canadian population aged 15 years and over — about 8 million people — had one or more disabilities. The Canadian Survey on Disability found that over 5.2 million (approximately two thirds) of persons with disabilities were of working age (18-64). Among those, more than 1.9 M (37%) had severe disabilities.footnote 6

The Canada Disability Benefit program targets a subset of the working-age disability population: low-income persons with severe and prolonged disabilities. As a benefit under the Canada Disability Benefit Act, the supplemental amount will support low-income persons with severe disabilities by helping to offset costs they may incur to access the program, including costs to qualify for the Disability Tax Credit.

The supplemental amount will particularly benefit persons with disabilities who have the greatest unmet needs. This includes individuals who struggle to afford disability supports such as health care therapies and services (including applying for the Disability Tax Credit). According to the 2022 Canadian Survey on Disability, four in ten Canadians with disabilities aged 15 and older said they had needs they could not afford. The most common unaffordable needs were

Unmet needs were most common among the target population for the program:

The 2022 Canadian Survey on Disability also showed that people with disabilities who are 2SLGBTQ+, racialized and Indigenous face higher unmet needs due to costs. These rates are higher than for those who are not part of these groups:

The supplemental amount will only go to persons with disabilities who are entitled to an allocation payment. This means that people will not receive the supplemental amount before they pay out-of-pocket expenses, including medical practitioner fees or other costs. As a result, the supplemental amount will not help persons with disabilities who

As well, among allocation recipients who are eligible for the supplemental amount, some may not have paid any Disability Tax Credit-related fees, some may have paid them years ago, and some may have paid fees that exceed $150, which is the value of the supplemental amount.

The other amendments are not expected to have a disproportionate impact on any subgroup of allocation recipients.

Implementation, compliance and enforcement, and service standards

Implementation

The Regulations will come into force on September 1, 2026.

Service Canada will deliver the supplemental amount, and the Canada Revenue Agency will remain responsible for determining eligibility for the Disability Tax Credit. To start making payments as soon as possible, implementation will occur in three phases, as follows:

Compliance and enforcement

Employment and Social Development Canada will leverage existing compliance and enforcement activities to deter fraud, punish financial abuse, and prevent and mitigate overpayments. Compliance reviews and administrative investigations will be implemented to verify that the risk to the integrity of the program remains low. Program policy and procedural material will be updated to ensure uniformity in the administration of the supplemental amount in accordance with the Canada Disability Benefit Regulations by Service Canada.

Service standards

Service standards for delivery and administration of the supplemental amount will be consistent with the service standards for the Canada Disability Benefit program. Publicly available service standards for the program, including those related to the supplemental amount, will be established 18-24 months after program launch once sufficient operational and baseline data is available to set meaningful targets.

Contact

Mausumi Banerjee
Executive Director
Income Security and Social Development Branch
Email: edsc.pcph-cdb.esdc@hrsdc-rhdcc.gc.ca