Only Alberta Will Claw Back New Federal Money for Disabled People

The new Canada Disability Benefit being rolled out in July would seem to be nothing but good news for Brad Tuktu. Living with a disability, he already receives supports from the federal and Alberta governments that he said prevent him from becoming destitute.

Now, once he applies and qualifies for the new federal benefit, he could receive another $200 a month.

But Tuktu lives in Alberta. And so, like many people here with disabilities struggling to get by, the new benefit won’t change his life much.

In fact, he will have to pay hundreds of dollars to qualify and then the Alberta government will, unlike any other province, claw back what the Canada Disability Benefit provides Tuktu, deducting it from what the province already pays in support.

“This clawback clearly demonstrates a lack of understanding of the realities that people with disabilities and their families are experiencing on a day-to-day basis in this province,” said Trish Bowman, CEO at Inclusion Alberta, a federation of non-profit organizations focused on children and adults with intellectual disabilities.

AISH a lifeline for 77,000 Albertans

Spend some time with Tuktu as he shares his financial reality, and you begin to appreciate how vital and complex is the mosaic of aid disabled people receive in Alberta.

Tuktu is grateful for Alberta’s Assured Income for the Severely Handicapped, a financial benefit available to low-income Albertans with a permanent disability.

Each month, he receives $873 from CPP-D, a disability benefit based on an individual’s contributions to the Canada Pension Plan, $1,060 from AISH, plus $700 in rent assistance from the province. Combined, these benefits afford Tuktu a safe apartment in central Edmonton, and cover electricity, phone and internet bills, as well as food — all despite having a physical disability that has slowly undermined his capacity to work over the last five years.

“Without AISH, I would be homeless,” said Tuktu, who asked The Tyee his name be changed for fear of losing his income.

AISH allows more than 77,000 Albertans with a disability to survive — but not to thrive.

The reason for this is the long-held belief that a portion of the people on income support are abusing the system, said Rabia Khedr, national director at Disability Without Poverty, an organization working to advance a livable income for Canadians with a disability.

But by keeping disability benefits low, “we’re doing this collective harm to the entire population of people with disabilities,” she said. “People with disabilities need an adequate benefit.”

In Alberta, the meagre income AISH clients receive each month leaves them vulnerable to unexpected expenses — such as the $250 Tuktu said he has to pay out of pocket to apply to the Canada Disability Benefit.

To receive the up to $200 per month the federal disability benefit offers, Canadians with a disability should qualify for the Disability Tax Credit first, but applying to this requires a medical assessment that can cost up to $450 in Alberta.

With a maximum living allowance of $1,901, few AISH recipients can afford to pay this without cutting on essential expenses — but they don’t have a choice.

“I need to apply for this,” Tuktu said. “Otherwise I am going to lose all my funding and become homeless.”

According to the Assured Income for the Severely Handicapped Act, the eligibility of AISH recipients can be suspended if they fail to “make use of or claim income to which he or she is entitled.” This includes applying to CPP-D, employment insurance, Workers’ Compensation Board benefit, and now the Canada Disability Benefit.

The office of the Ministry of Seniors, Community and Social Services did not respond to The Tyee’s inquiry regarding the deadline for AISH recipients to apply to the federal disability benefit, a mayor concern for Albertans who, like Tuktu, are scrambling to produce the money they need to apply for the federal benefit.

“I could borrow $250 and pay it back when I get the $200 from the federal benefit,” he said. “The problem is, because they’re clawing it back, I won’t get any extra funding — I’ll still receive the same amount.

Canada’s new benefit ‘is intended to supplement’

Receiving an additional $2,400 per year, the maximum amount offered by the federal benefit, could release many AISH recipients from poverty. That’s not the priority for Alberta’s premiere, Danielle Smith, who believes her government is already doing more than enough to support Albertans with disabilities.

“We have been challenging other provinces and the federal government to match our very generous support for the Assured Income for the Severely Handicapped,” Smith said recently during her radio show. “We are the highest in the country.”

But the bar is low.

Despite boasting the highest disability benefit in the country, AISH remains $1,342 below Alberta’s poverty line, on an annual basis, even after including additional social assistance to cover the cost of childcare, service animals, medical equipment, and special diets. Yet, anticipating the launch of the federal benefit this summer, Alberta’s 2025 budget cut $49 million from AISH.

“Alberta’s government is committed to ensuring that our province continues to have the best disability programs in Canada,” said Ashley Stevenson, a spokesperson at the office of the Minister of Seniors, Community and Social Services, in a statement, adding that the province is “incredibly pleased that the federal government is finally starting to pay their fair share to help support Albertans with disabilities.”

The federal disability benefit, however, isn’t meant to share costs — nor to help provincial governments balance their budget at the expense of Canadians with disabilities.

“The Canada Disability Benefit is intended to supplement existing income support programs for working-age Canadians with disabilities,” Saskia Rodenburg, a spokesperson with Employment and Social Development Canada, the federal government department in charge of the country’s social programs, said in a statement.

“The goal of the federal government is to ensure that all eligible Canadians with disabilities are better off.”

As the cost of living continues to skyrocket, neither Albertans with a disability, or their advocates, are pleased with their provincial government’s stance.

“At a time when the province is cutting income tax because it made an election promise to do so, they’re basically imposing a 10-per-cent tax on disability,” said Bowman of Inclusion Alberta about the clawback.

Protesters rally against clawbacks

Gregory McMeekin, Alberta’s Advocate for Persons with Disabilities, a role appointed by the provincial government, said that the province is well aware of the financial challenges facing Albertans with disabilities, as his office consistently reports on the shortcomings of AISH.

“Once we report, it’s up to the province to decide what they want to do with the information,” he noted.

Seemingly, the advocate’s advice is not being heeded — but disability activists aren’t giving up.

On May 6, a group of Albertans rallied outside of the legislature in Edmonton to protest against the provincial clawbacks. One of the rally’s organizers, Zachary Weeks, told The Tyee that many AISH recipients were counting on the federal benefit for their survival. “We’re in an economy where the cost of everything is rising,” he said. “But people with disabilities are essentially on the same income.”

Because the first deposit from the Canada Disability Benefit won’t take place until July, Bowman believes there’s still time for the Alberta government to reconsider its position, and let Albertans with disabilities have the additional income they qualify for.

“The province could decide to not treat the Canada Disability Benefit as income, and allow Albertans to keep the benefit,” she said. “They could make a big difference by demonstrating that they are capable of changing course when they get it wrong.”