Budget 2025: Red Tape Eased, Not Erased
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Budget 2025: Red Tape Eased, Not Erased

We’ve been heard - and that matters.

 

In Budget 2025, the federal government took a welcome step toward cutting red tape for the Canada Disability Benefit (CDB) by helping to offset the costs of applying for the Disability Tax Credit (DTC) for those who qualify for both programs. Unfortunately, we knew there was no rate increase coming, even though we lobbied hard for it, and we will continue to do so. 

 

This new one-time $150 payment recognizes that red tape is a barrier in itself - an issue that people with disabilities and advocates have raised for years. It’s a small but meaningful move toward administrative fairness.

 

However, this measure does not expand eligibility or remove the DTC barrier that continues to exclude many from accessing the benefit. Red tape has been eased, but not erased. Progress on access must now become progress on inclusion.

 

We are also pleased to see the government committing to legislate that the CDB will not be treated as income under the Income Tax Act, ensuring recipients can keep the full value of their benefit. This is a major policy win that DWP has long advocated for.

 

At the same time, we note that the government’s election platform promised a full review of the DTC program - yet this Budget provides no details on when that review will begin or how the disability community will be involved.

 

The Budget only states that “the government is committed to looking at ways to provide such a payment in respect of other Disability Tax Credit certifications as part of its work to review and reform the process to apply for the credit.”

 

We’ll be watching closely to ensure this review moves forward and that people with disabilities are meaningfully included in shaping how the DTC - and the CDB - can work better for everyone.

 

As we look ahead, we’ll continue working to ensure the CDB is fully accessible, automatic, and adequate - reaching every person who needs it.

 

Together, we’ll keep pushing for a Canada that leaves no one behind.

 

Yours in solidarity,

Disability Without Poverty 

SVP écrivez-nous à hello@disabilitywithoutpoverty.ca si vous désirez la correspondance en français.

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Disability Without Poverty, 1486 Southdown Rd, Mississauga, ON L5J 2Z4, Canada

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