Thank you very much.
Good afternoon, committee members.
I would like to thank the committee for its work to create a more inclusive country for persons with disabilities. I also thank all parties for supporting Bill C‑22 at second reading.
Colleagues, you have before you legislation that is very straightforward in both its objective and its format. Bill C-22 would create the new Canada disability benefit, a monthly supplemental income payment modelled after the GIS and to be paid directly to working-age, low-income persons with disabilities. The objectives of Bill C-22 are poverty reduction and financial security. The harsh reality is that working-age persons with disabilities in Canada are twice as likely to live in poverty as those without. Approximately one in four working-age persons with disabilities lives below the poverty line.
Many persons with disabilities in Canada experience a modest level of financial security for the first time in their adult lives when they turn 65 and have access to OAS and GIS. The poverty level drops by over 60% for persons with disabilities between the ages of 64 and 65—from 23% to 9%. I know you all agree that is unacceptable—not the poverty drop, but the fact that it was 23%.
The Canada disability benefit would be established and implemented through Bill C-22, which is the legal framework to create the benefit, and a subsequent public regulatory process through which the specific details of the benefit would be established. This is by design. This is intentional. This approach recognizes the important role the disability community must play in this process, as well as the complexity of existing provincial and territorial disability service and support systems.
Let me back up for a moment. From the outset, I have had two priorities in developing this benefit: first, that the disability community be involved at every stage of the process, and second, that there be rigour in dealing with provinces and territories, in order to ensure that people are better off and that existing benefits and services are not clawed back.
To my first priority, we worked very closely with the disability community. The principle of “nothing without us” is embedded in Bill C-22. The Accessible Canada Act requirement that persons with disabilities be involved in the development and design of laws, policies, programs and services is embedded in Bill C-22, and Canada's obligations under the UN Convention on the Rights of Persons with Disabilities are embedded in Bill C-22.
We invested $12 million over three years in budget 2021 to work with the disability community on the design of the proposed benefit. We did an online survey, held roundtables and other forms of consultations. We also funded national disability organizations to engage the community directly.
We will not impose upon this community, and we will not create a race to the bottom.
Stakeholders such as Inclusion Canada have made it clear they don't want decisions being made without the disability community's meaningful participation. People First of Canada raised the key principle of having people with intellectual disabilities at the table during the design stage of the benefit. Disability Without Poverty wants this legislation to pass quickly through Parliament and is eager to participate in the regulatory process, so that a range of lived experiences are heard and listened to. There are more.
We've worked with the community at every step and will continue to engage, seek input from and respond to the community through this and every subsequent phase of benefit development and delivery, including the regulatory process.
With respect to my second priority, it is through the work with the provinces and territories where the rubber hits the road on both the delivery and potential impact of this proposed benefit.
Bill C‑22 recognizes the leading role that the provinces and territories play in providing supports and services to persons with disabilities. Each jurisdiction in Canada has a unique policy environment with respect to disability benefits and supports.
Quite frankly, I cannot overstate the complexities of the systems we are working with. There are 13 different provincial and territorial systems in play, each with its own combination of supports and services. Some are grounded in legislation or regulations, while others are related to program delivery. There are different definitions of “disability” and a variety of eligibility criteria, not only across jurisdictions but also within them.
In some cases, eligibility for one disability program opens up access to another. In other cases, being enrolled in one disability program can exclude individuals from accessing others, or reduce the benefits provided. Across jurisdictions, there are differences in the treatment of other forms of income, different reduction rates and different treatment of spousal or family income and support.
For example, Alberta has a benefit structure focused on people with severe disabilities. Clients must be substantially limited in their ability to work, and their disabilities must qualify as likely to be permanent. The benefit dollar is significant, and couples can retain more than twice as much employment income as singles before they start to lose benefits.
Ontario provides broader, less targeted assistance. Qualifying disabilities need not be severe and can affect work, personal care or participation in community life. The disability must be expected to last at least one year. Benefits are calculated on a family basis. The employment income exemption is calculated separately for each member of a couple.
The Northwest Territories provides benefits that are geared to the high cost of living in the north. Eligibility is based on the ability to perform the activities of daily living. Benefit amounts cover the actual cost of low-cost shelter and utilities, with no fixed cap. Employment income exemptions are household-based.
These are just three of the 13 we're working with in here.
Bill C-22 grants the authority to enter into agreements with provinces and territories to carry out the purposes of this act. That's really important. The CDB is intended to supplement existing provincial and territorial support, not replace it.
Within this complex ecosystem I just described, we really need to harmonize our systems to ensure that there are no clawbacks and that everyone who receives the CDB is better off. This means ensuring that income supports are not negatively impacted and that eligibility for related services and programs is not negatively impacted. We need to lift people up. We need to lift people out of poverty. Across Canada, most disability programs and income benefit amounts leave recipients well below the poverty line. The average total annual income of working-age persons with disabilities who receive social assistance is $12,600. This comes nowhere close to the national poverty line, which ranges from $19,000 to $25,000 per year, depending on where you live.
I'm pleased to report that work with the provinces and territories is going well. There's an FTP work plan that all jurisdictions have agreed to. PTs are very supportive of the framework legislation approach. They appreciate and understand that there's no one-size-fits-all that will optimize the impact of this new federal benefit within the complex array of provincial-territorial systems, and they share our commitment to making people better off and lifting people out of poverty. This is really important. We absolutely need flexibility in working with the provinces and territories. I'll note quickly that we're also working across the Government of Canada on federal benefit interaction.
Colleagues, we have the opportunity for a once-in-a-generation change here. With Bill C-22, we are doing things differently on purpose. Bill C-22 will allow us to work collaboratively with the disability community, as well as with the provinces and territories, to ensure that the benefit achieves its objective of reducing poverty among working-age persons with disabilities.
I'd be happy now to take your questions.
