ODSP advocates fear province might claw back payments with introduction of federal benefit

Advocates for Ontario Disability Support Payments (ODSP) are speaking out over fears that a new federal benefit for those on disability will lead to a claw back of funds by the Ontario government.

Prime Minister Justin Trudeau’s Liberal government introduced the Canada Disability Benefit back in June of 2022 and it received Royal Assent this past June.

Currently, the federal government is asking for feedback to inform the development of the regulations for the benefit.

CityNews has obtained a copy of the Ministry of Social Services transition binder from when MPP Michael Parsa took over from Merilee Fullerton in early 2023. It states that the Canada Disability Benefit “could help mitigate costs.”

“Some announced federal programs and initiatives could help to mitigate costs, depending on how they are implemented… Introducing a Canadian Disability Benefit, intended to help reduce poverty for persons with disabilities aged 18-64,” read the information in the binder.

Advocates say it was always considered to be a top-up to the existing provincial benefits, not a replacement, but with the wording included in the transition binder, they worry that might not be the case.

“So that makes you wonder, how does the province anticipate they’re going to save money when the federal government introduces a Canadian Disability Benefit,” said Trevor Manson, co-chair of the ODSP Action Coalition.

Currently, the maximum amount a person can get through ODSP is $1,308.

“I wouldn’t say people are thriving on it but it doesn’t take a rocket scientist to figure out that we’re in a housing affordability crisis and $1,308 doesn’t go very far when you’re looking at rent that is between $1,000 and $1,500 a month.”

A recent report from the Daily Bread Food Bank found that food bank clients have an average of $6.67 per person per day left after paying their rent and utilities. Approximately 19 per cent of food bank users are on ODSP.

The Ford government raised ODSP benefits five per cent following the last election, and then another seven per cent with the rate of inflation, which Manson called a step in the right direction.

“Every little bit helps … But when the amount on which the inflationary increases are based is already 40 to 50 per cent below the poverty line, then any subsequent increase is still going to be 40 to 50 percent below the poverty line. It’s not going to lift people out of poverty.”

When asked whether he would pledge not to claw back any ODSP payments, Minister of Children, Community and Social Services Michael Parsa said, “Our commitment has been very clear, we want to make life more affordable for Ontarians. We want to make sure that Ontario, again at a time with the rising costs of everyday life, becomes more affordable.”

In a statement to CityNews, the federal government said, “the Canada Disability Benefit is an income supplement, not an income replacement,” adding they are working with provinces and territories to ensure it “does not result in any reductions of existing benefits.”

Parsa added they had hoped to see more details about the federal benefit in the recent fall economic statement.

“We were really looking forward to the details, a promise that the federal government has made and [we] stand ready here to work with them to make sure that we deliver for the people of Ontario, the people that are looking for support at a time with the rising costs of everything,” said Parsa.

For right now, Manson said they are focused on hoping that the current federal government is able to get the benefit to the finish line before an election takes place.

“There is concern about what is going to happen if there is a change in government,” said Manson. “We always have hope. There’s a real fear that there’s going be a federal election before we’re able to get the regulations for the Canada Disability Benefit fully implemented.”