Some Canadians could soon receive a one-time $150 payment under the Canada Disability Benefit (CDB), aimed at covering costs related to applying for the Disability Tax Credit (DTC). The new measure, announced in the 2025 federal budget, seeks to make it easier for low-income Canadians with disabilities to access benefits without facing financial barriers.
According to the proposal, the payment will be offered to those who complete a DTC certification or recertification that results in an approved entitlement under the Canada Disability Benefit. The initiative follows concerns raised by advocacy groups that the costs associated with DTC paperwork and medical forms discourage eligible individuals from applying.
Why the $150 benefit payment is being introduced
The federal government confirmed that the one-time payment will apply retroactively from the launch of the Canada Disability Benefit, which began in June 2025. The benefit provides up to $2,400 per year (about $200 monthly) for eligible working-age Canadians with disabilities and low income.
The Department of Finance Canada said the $150 supplement recognizes that many Canadians face out-of-pocket expenses when applying for the Disability Tax Credit, such as physician forms or administrative costs. By offering this small one-time payment, Ottawa hopes to encourage more applicants to certify or renew their DTC eligibility.
| Program Detail | Description |
|---|---|
| Payment amount | One-time $150 benefit |
| Eligibility | Canadians approved for the Disability Tax Credit (DTC) tied to the CDB |
| Coverage | Retroactive to June 2025 |
| Estimated federal funding | $115.7 million over four years (from FY 2026-27) |
The payment will be non-taxable and not counted as income under the Income Tax Act, ensuring it will not reduce eligibility for other federal or provincial income-tested programs such as the Guaranteed Income Supplement (GIS) or provincial disability supports.
Who qualifies and how to apply
To receive the $150 payment, individuals must:
- Be approved for the Disability Tax Credit (DTC) through the Canada Revenue Agency (CRA).
- Be eligible for or currently receiving the Canada Disability Benefit.
- Have completed the certification or recertification process that establishes eligibility for the DTC.
Those who already hold an active DTC certificate will automatically be assessed for eligibility; no separate application is expected for the one-time payment. Canadians are advised to ensure their DTC status is current and their personal details are up to date with the CRA and Service Canada.
Government officials note that distribution of the $150 payment will begin once Parliament passes the required budget legislation and administrative systems are in place. Payments are anticipated to start before the end of the 2026-27 fiscal year.
For Canadians applying for the DTC, the CRA allows online applications, paper submissions, or support through certified tax preparers. Details on eligibility criteria, medical practitioner forms, and benefit timelines can be found on the government’s official website at canada.ca.
Broader impact of the Canada Disability Benefit
The Canada Disability Benefit is part of Ottawa’s broader plan to reduce poverty among working-age Canadians with disabilities. Roughly 23 % of Canadians aged 15 and older live with some form of disability, and one-third of those individuals fall below the national poverty line.
By pairing the new $150 supplement with long-term monthly support through the CDB, the government aims to make the program more inclusive and accessible. Disability advocates, however, continue to call for higher monthly payments to match inflation and the real cost of living.
Canada will raise the retirement age beyond 65 starting November 10, 2025, affecting future eligibility for OAS and CPP benefits. The change encourages longer workforce participation and aims to strengthen the nation’s pension system.
The federal budget also reaffirmed that provinces and territories will work alongside Ottawa to ensure that CDB payments do not affect existing disability or social-assistance benefits.
The one-time $150 Disability Benefit Payment represents a small but meaningful step in improving access to financial support for Canadians with disabilities. By reimbursing the cost of Disability Tax Credit applications, the federal government is removing a key barrier for those seeking to qualify for the new Canada Disability Benefit.
Canadians eligible for the Disability Tax Credit are encouraged to confirm their status and stay updated through Service Canada or Canada.ca for official payment timelines and details.
