Canada Disability Benefit in Alberta: The facts and how to take action

Information on the Canada Disability Benefit and what it means for Albertans with disabilities.

The Alberta government recently announced that the new Canada Disability Benefit, payment of which is set to begin this summer, will be considered ‘non-exempt’ income for AISH recipients. Individuals and families are increasingly reaching out to Inclusion Alberta expressing disappointment, fear and confusion over this decision and what it means for them. We have created this Canada Disability Benefit in Alberta Fact Sheet (download PDF), (text follows in drop downs below) as a resource which we hope will aid in clarifying the issues.

Know the facts and what it means for you and your family.

The Canada Disability Benefit will be a monthly payment for working-age persons with disabilities who have low income. The benefit was intended to lift people with disabilities out of poverty, but the maximum benefit of $200 a month is too low to accomplish this goal. There are other problems with CDB’s design. Applications opened in June 2025 and payments began in July.  

You must: 

  • be currently approved for the Disability Tax Credit (DTC), 
  • be between the ages of 18 and 64, 
  • have filed an income tax return for the last tax year, 
  • be a resident of Canada  

Further details about CDB eligibility from the Government of Canada are here.  

The maximum benefit amount is $2,400 a year, or $200 a month. The amount received is based on both your income and the income of your spouse or common-law partner in the previous tax year.  

The benefit amount will be reduced if your income is above a certain threshold. People who earn more than a specified income limit are not eligible to receive the CDB. How much income you can earned before CDB is reduced depends on whether your earnings are employment income or from another source, and whether you are single or have a spouse or common-law partner and whether that partner also receives CDB.   

The Government of Canada provides information about CDB payments here.   

The federal government has exempted CDB as income in calculations of other federal benefits, which means the CDB is a benefit you receive in addition to other benefits. Receiving CDB will not reduce Canada Child Benefit, Employment Insurance, or other benefits you receive from the Government of Canada.  Because the Government of Canada requires recipients to report the CDB as income on your tax return, provinces and territories each can decide on how it interacts with their own programs and benefits, like AISH. Among provinces and territories, only Alberta is clawing back provincial benefits for individuals receiving the CDB.    

If you receive AISH or Income Support from the Government of Alberta, every dollar of CDB you receive from the federal government will lead to an equal reduction in the provincial assistance you receive through AISH or Income Support. Even though you technically will receive the CDB, you will in fact have no more income than before you qualified for CDB because your AISH or Income Support has been reduced.

The only exception is individuals who receive a modified AISH living allowance because they reside in a Continuing Care facility. For reasons that are not clear, the AISH regulation has been amended to exempt CDB as income but not for everyone.  Only the individuals living in Continuing Care facilities, 3% of the total number of people who receive AISH, get to keep the benefit.

If you do not receive AISH or Income Support, receiving CDB could still change whether you are eligible for the other provincial benefits and the amounts you receive. Unless Alberta exempts CDB from being counted as income in eligibility and benefit calculations, it could lead to reductions in benefits from the following programs: Alberta Child Health Benefit, Medical benefits from Family Support for Children with Disabilities (FSCD), Alberta Aids to Daily Living (AADL), Residential Access Modification Program (RAMP), Alberta Student Aid, Alberta Child and Family Benefit, and Affordable Housing including Rental Assistance Benefit (RAB), Temporary Rental Assistance Benefit (TRAB), Community Housing, and Special Needs Housing. Eligibility for municipal government low-income transit passes may also be affected because the CBD must be reported, impacting the tax documents that cities use to determine eligibility.

The Government of Alberta sent a letter to everyone who receives AISH notifying them that they are required to apply for DTC and CDB. A second letter informed individuals that they must notify AISH by September 5, 2025, on the status of their DTC and CDB applications. The second letter, an update to the AISH Program Policy Manual, and an FAQ document for the AISH program state that failure to do so may result in $200 being deducted from their AISH benefits beginning in October.  

Applying provides little benefit to you if you receive AISH—the provincial government seems to be motivated by wanting to reduce the amount it spends on AISH payments for individuals who receive CDB. Applying for the CDB will be very challenging for some because it requires that you first apply successfully for a DTC certificate and ensure you have filed an income tax return. We advise you to try to comply because whether you do or not, your AISH benefits may still be reduced by $200. For some individuals who receive AISH, applying for DTC has advantages because it allows them to qualify for other federal benefits.  

The DTC application has two parts:  

  • Part A – completed by the person with a disability or their legal representative.   
  • Part B – completed a medical practitioner.  

Doctors and nurse practitioners can fill out all sections of Part B, and other health professionals can help their patients certify specific categories of disabilities. Finding a healthcare provider willing to complete DTC forms can be challenging, especially for the over 650,000 Albertans in need of a family doctor. Cost is also a barrier as healthcare providers charge fees as high as $300 to complete the forms. An FAQ from AISH says that  

“The federal government’s Budget 2024 committed funding to cover the cost of the medical forms required to apply for the DTC. Details of this reimbursement model have not yet been announced, and more information will be shared when it becomes available. In the interim, if paying up front for the DTC medical fee creates financial hardship, AISH clients may request consideration by AISH to cover this cost, which will be repayable to AISH upon reimbursement by the federal government.” 

To be reimbursed, you must provide to AISH a quote or invoice from their medical practitioner. AISH previously required AISH applicants to demonstrate that paying for the medical form would demonstrate financial hardship but this no longer is the case.

Find more information about applying for the Disability Tax Credit on our website here. 

Only one quarter of persons with disabilities likely to be eligible for the DTC have submitted a complete DTC application according to the Government of Canada’s 2024 Disability Advisory Committee report. The report highlights the time-consuming and complex application process as a barrier to qualifying for the Disability Tax Credit (DTC). The report notes that only 24% of online applications that are begun are completed and concludes that “more support and accessibility in the process is needed for applicants to successfully complete the process”.   

Many third-party companies offer to help people to apply for the DTC, but there are often considerable fees for their service. There are also organizations that provide free support. Click here for a list of organizations the Government of Canada funds to provide disability benefits navigation services, covering not only federal benefits and credits like DTC and CDB, but also provincial benefits. 

Inclusion Canada’s Barrier-Free Benefits Navigator: Offers free one-on-one help with federal disability benefits, such as the Disability Tax Credit (DTC), Canada Disability Benefit (CDB), Registered Disability Savings Plan (RDSP), Canadian Dental Care Plan (CDCP), filing your taxes. Learn more and book a free consultation here.

Voice of Albertans with Disabilities specifically supports individuals in Alberta. Other organizations provide support to individuals anywhere in Canada. The Disability Planning Helpline’s advisors provide free support with your application by providing sample language, reviewing your paperwork, and helping you prepare a letter for your medical practitioner. If your application is denied, they can help you understand why and guide you through the reapplication process. You can also try the My DTC app, where you can find guides about the DTC for both applicants and medical professionals, a questionnaire that generates materials that will help you apply, and a checklist to help you stay on track through the application process.   

The AISH programs says: “Albertans are encouraged to use the Find a Doctor tool to locate a family physician or nurse practitioner accepting new patients in their area. Alternatively, Alberta Health Services (AHS) offers Virtual Health to connect patients by phone or video to physicians. Albertans can contact Health Link Alberta at 811 for health advice from experienced nurses or visit the AHS Know Your Options webpage for more information about nearby programs and services, including hospitals and walk in clinics.” 

The process is explained on the Government of Canada’s Canada Disability Benefit page. 

Webinar: Check out the recording of the webinar “Navigating the DTC and CBD”, presented by The Plan Institute. (Password: %UG!eq7q )

The AISH program says: “Yes, AISH clients have been informed of the requirement to access the CDB and advised to notify their local AISH office by September 5, 2025, of the status of their DTC and CDB application. This will allow workers to monitor the file and adjust as necessary.” 

Complete the Canada Disability Benefit application status online form if you have not yet updated AISH on your CDB status

Individuals receiving CDB and individuals who have not taken steps to apply for DTC or CDB will have benefits clawed back. Individuals not yet approved for CDB may delay the clawback by demonstrating that they have taken steps to apply.

Complete the three-question form by September 5 to avoid AISH clawing back $200/month from your benefits. The form does not require uploading any documents.  Alternatively, you can update AISH by:

  • answering the call from AISH workers and answering their questions. AISH will not ask for date of birth or SIN, only information on application status.
  • calling the toll free AISH line to let them know you have filed your taxes as a first step in applying for the DTC
  • visiting your AISH office for help applying and continuing to update them as you work through the application process

The AISH programs says: “Clients are expected to update the AISH program on the status of their CDB application. This can include verbal updates (e.g. awaiting a medical appointment to complete the DTC medical form or awaiting a CDB eligibility decision). In some cases, substantiation may be requested in the form of documentation (e.g. if a client is denied eligibility for the DTC or CDB, the denial letter). This will support accurate case management of the file.” 

The Alberta government has indicated that they do not currently require documentation showing your application progress. However, we recommend providing as much documentation as possible to support your update. This might include your application submission reference codes, any written correspondence with your medical practitioners and your determination letters. It is good practice to keep copies of all documentation related to your application. If you do not have any documentation available, it would be helpful to note in the letter the barrier preventing you from accessing this.

Once you had received from Service Canada a letter containing the results of your CDB application, you should share this with AISH.

If the AISH office requires additional documentation as proof of your application status they will let you know when you contact them, as well as any next steps.

The AISH programs says: “The federal government significantly broadened the DTC eligibility criteria in 2025. In cases where an AISH client was denied eligibility for the DTC prior to 2025, they will be required to reapply for the DTC. If a client was denied the DTC in 2025, they should provide substantiation to confirm denial to avoid a reduction in benefits.” 

The AISH programs says: “Given the statutory requirement to access all sources of income they may be eligible for, AISH clients who have not communicated the status of their CDB application prior to September 5, 2025, may see an equivalent amount to the CDB benefit, a maximum of $200, deducted from their monthly AISH benefits, beginning with the October period of assistance. AISH benefits will not be held or terminated if a client does not communicate the status of their CDB application. Clients who are taking steps to access the CDB and communicate this to the AISH program will not see a reduction in their AISH benefit.” 

We are asking you to request a meeting with your MLA, with the Minister of Seniors, Community and Social Services, and with the Minister of Finances. We urgently need to join in opposing this claw back, otherwise government will assume that people with disabilities are resigned to accepting this unjust policy. Instructions on how you can take action are below.

Your advocacy is needed: Advocate for no provincial clawbacks of the Canada Disability Benefit (CDB)

The decision by the Government of Alberta to claw back the Canada Disability Benefit (CDB) dollar for dollar will deprive support from tens of thousands of Albertans with disabilities who live in poverty. Alberta is the only provincial government to have announced that it will claw back the CDB from adults with disabilities who receive provincial income support. All other provinces and territories are allowing adults with disabilities to keep the benefit that the federal government began paying in July 2025. 

The Canada Disability Benefit (CDB) is a new federal benefit of up to $200 per month for low-income people aged 18-64 who have a disability. The federal government originally promised that the benefit would lift people with disabilities out of poverty, but sadly $200/month will not do that. While we will continue to advocate for the federal government to increase the benefit amount to a level that will truly impact poverty, the CDB is meant to be a top-up, not a replacement for provincial disability income support. 

Inclusion Alberta calls on the Government of Alberta to reverse their decision to claw back the Canada Disability Benefit, allowing the benefit to do what it is intended to do; reduce poverty for people with disabilities. In line with other federal benefits such as the Canada Child Benefit, the CDB should be considered exempt income. The Government of Alberta should never seek to address its budget challenges at the expense of those already disadvantaged and living in poverty. 

We are encouraging families to request a meeting with their MLA and with Alberta cabinet ministers to request that the CDB be added to the list of exempt unearned sources of income for provincial income support programs. Cabinet can easily approve this change so that AISH and Income Support benefits will not be clawed back in whole or in part. 

We have several resources for you that will help you and your family advocate and engage with government decision-makers to prevent clawbacks related to the new CDB in Alberta. 

  1. Sample letter to government. A document for you to use as a template to email to relevant ministers, politicians and civil servants that follows the same structure as the meeting handout but is formatted as a letter with a call-to-action to reverse the decision to claw back CDB. We encourage you to personalize this letter, letting the recipients know how the CDB will impact your family and why it is important that clawbacks stop. The letter includes as an attachment a brief that describes the real life consequences of this policy decision by spotlighting stories of AISH recipients across Alberta, “Losing the Canada Disability Benefit means losing hope for many Albertans.” 
  2. How to contact government about CDB clawbacks. Guidance on how to request a meeting with relevant ministers, MLAs, and civil servants in Alberta, and their contact information.
  3. Suggested talking points. A succinct, narrative-based document complete with key talking points.  Includes key messages for you to reference, to which you may personalize further using the information in this toolkit, stories of people with lived experience, or your own external knowledge. 
  4. Meeting handout. A document that you may hand to the person you are talking to; it contains evidence and the key messages of this advocacy campaign. You can also send it by email in advance of your meeting. 
  • Overviews the state of poverty experienced by people with disabilities. 
  • Describes the CDB and its intended purpose. 
  • Asks that government allow for recipients to get the full value of the CDB they are entitled to – in addition to their regular social assistance amount through programs such as AISH (Assured Income for the Severely Handicapped). This change will ensure that the CDB may serve as a top-up, not a replacement of existing social assistance benefits.  

Thank you in advance for your advocacy. If you have any questions or need any assistance, please contact us at info@inclusionalberta.org or by calling 1-800-252-7556.

-Inclusion Alberta