Selfadvocatenet Coverage of Canada Federal Budget 2025
Selfadvocatenet will highlight what is in the federal budget for Self Advocates with Disabilities.
As well inclusion Canada take on it as well
Federal Budget 2025 Takes a Step Forward on Access but Stops Short of Real Change
FOR IMMEDIATE RELEASE November 5, 2025
Toronto, ON – Inclusion Canada welcomes the government’s commitment in Budget 2025 to implement automatic income tax filing for low-income Canadians, an important step toward removing barriers to accessing critical benefits, including the new Canada Disability Benefit (CDB). Automatic tax filing will begin with 2025 returns filed in 2026 and targets simple low-income situations. We also are pleased to see the measure to provide a one-time $150 supplement toward Disability Tax Credit (DTC) medical certification costs for those applying for the DTC, retroactive to the CDB launch, a long-standing barrier that has kept many people from accessing the DTC and the new CDB.
However, despite these positive steps, Budget 2025 stops short of delivering real change. The Canada Disability Benefit remains too low and too narrow to lift people out of poverty or to make life truly more affordable for Canadians with disabilities.
“Automatic tax filing and covering the medical portion of the DTC application are measures Inclusion Canada has been calling on for some time, and we are pleased to see them announced,” said Krista Carr, Chief Executive Officer of Inclusion Canada. “Too many people with intellectual and other disabilities, particularly those living in poverty, lose access to life-changing benefits simply because they don’t or can’t file their income taxes. Now we must ensure that the benefits people qualify for as a result of filing their taxes are adequate, inclusive, and automatic,” concluded Carr.
While these measures align with Inclusion Canada’s long-standing calls to remove tax-filing barriers and barriers to accessing the DTC, Budget 2025 still leaves major gaps. The Canada Disability Benefit remains far below adequacy, with limited eligibility. People need a fully funded plan for an adequate benefit with dates and dollars.
“As a parent of an adult with an intellectual disability, I know how crucial timely and accessible benefits are for families,” said Moira Wilson, President of Inclusion Canada. “Automatic tax filing and covering some of the costs for the DTC medical portion will help open the door for him and others, but the door still leads to benefits that are too low and out of reach for many. People with intellectual disabilities deserve a national benefit that will lift them out of poverty”, concluded Wilson.
Budget 2025 confirmed work to make the Canada Disability Benefit tax-exempt for the purposes of other federal income-tested benefits will be implemented, which we have been calling for and support. The Budget also proposed a temporary ‘top-up tax credit’ to address cases where the middle-class tax rate reduction (Bill C-4) could reduce the value of non-refundable credits, like the DTC, for some taxpayers. The budget also re-affirmed the government’s commitment to review and reform the process to apply for the DTC. These measures are all welcomed and they are positive steps forward, but we need urgent action to end poverty among persons with disabilities in this country. People simply cannot wait any longer.
At the same time, Inclusion Canada is deeply concerned by language in the budget suggesting potential cuts to programs within Employment and Social Development Canada (ESDC), the department responsible for many federal disability and inclusion initiatives. There are many programs within ESDC that are vital to persons with disabilities such as the Social Development Partnership Program – Disability Component (SDPP-D) and the Opportunities Fund (OF), that provide much needed support to persons with disabilities and their representative organizations. We would not want to see cuts to these and other vital programs.
“Programs that support people with disabilities are not redundant – they are essential,” said Krista Carr. “Canada’s obligations under the UN Convention on the Rights of Persons with Disabilities are clear: governments must consult with and resource disability-led organizations. Cuts to this funding, if they were to be made, would violate international law and silence the organizations the government is legally required to consult. We call on the government to protect disability programs and to co-design any changes with the disability community,” concluded Carr.
Inclusion Canada shares the government’s goal of making life more affordable, but stresses that this must include people with disabilities. Exclusion is expensive, both for individuals and for the nation. Canada will not reach its full economic potential if 27% of the population is left behind.
For more on what Inclusion Canada’s priorities for this budget, please read our Pre-Budget submission here.
For Media Inquiries, please contact:
Jeff Ferguson,
Executive Director, Knowledge Mobilization & Transformation, Inclusion Canada
Email: jferguson@inclusioncanada.ca
Phone: 1-855-661-9611 ext. 231
Inclusion Canada is the national federation of 13 provincial/territorial member organizations and over 300 local associations working to advance the full inclusion and human rights of people with intellectual disabilities and their families. Inclusion Canada drives social change by strengthening families, defending rights, and transforming communities into places where everyone belongs.
- Canada Disability Benefit (CDB): The budget confirms the government’s commitment to the CDB, which began payments in July 2025. The benefit provides up to $2,400 per year ($200 per month) to eligible low- and modest-income working-age persons with disabilities who qualify for the Disability Tax Credit (DTC).
- Exemption from Income Tax and Federal Benefits clawbacks: The budget reiterates plans to ensure the CDB is not treated as taxable income under the Income Tax Act. The government also continues to call on provinces and territories not to claw back the CDB from other income-tested benefits, a commitment made in prior economic statements.
- Funding for DTC Application Costs: Recognizing the complexity and costs associated with the DTC application process, the budget proposes $115.7 million over four years to help cover these expenses.
- This includes a one-time supplemental payment of $150 for current CDB recipients to cover the costs they incurred in applying for the DTC.
- In the future, individuals who apply for the DTC and receive the CDB will automatically receive a one-time payment of $150.
- Streamlining Access: The Canada Revenue Agency (CRA) is mandated to automatically file tax returns for certain eligible low-income individuals, including those who may qualify for the Canada Disability Benefit, to help ensure they receive the benefits they are entitled to.
- Home Accessibility Tax Credit: The budget proposes a change to prevent “double-dipping” by no longer allowing the same expense to be claimed under both the Home Accessibility Tax Credit and the Medical Expense Tax Credit. This measure takes effect for the 2026 and subsequent taxation years.
- Disability Pension Indexation: For serving and retired RCMP members and related benefits, the budget proposes to modify the escalation formula for the Disability Pension so that it is indexed solely based on the Consumer Price Index, effective January 2027.
Full Details of Federal Budget 2025 go to Govt of Canada website here
Budget 2025 Leaves 27% of Canadians Without a Plan to Participate in the Economy
Budget 2025 takes some steps to improve access but fails to recognize the economic imperative of including people with disabilities in Canada’s economy. People with disabilities (27% of Canadians aged 15 and over) contribute as workers, entrepreneurs, and consumers, yet remain excluded from meaningful economic participation. This budget provides no clear roadmap to enable this participation, offers no new adequacy funding for the Canada Disability Benefit, and creates a potential risk to disability programs given significant savings targets at Employment and Social Development Canada.
What the budget includes
- Steps to ease benefit access, including simplified tax filing for low-income Canadians
- Measures to support Disability Tax Credit (DTC) medical certification
- Signals that the Canada Disability Benefit (CDB) may become ‘exempt from income’ for qualifying for other benefits.
- Measures to address negative effects on the value of the DTC as a result of reductions to marginal tax rates
We are pleased with these measures which should reduce some access barriers. However, without adequate benefits and supports, people with disabilities cannot fully participate in the economy.
What’s missing and what’s at risk
- No commitment to increase the Canada Disability Benefit (CDB)
- ESDC directed to achieve significant savings with no clarity on which programs face cuts (creating potential risk to disability-related programs)
- Eligibility for the Canada Disability Benefit (CDB) remains tied to the restrictive Disability Tax Credit (DTC)
- Major federal housing and infrastructure investments lack clear, measurable accessibility requirements
What the National Disability Network is calling for
The National Disability Network calls on the federal government to:
- Publish a plan for the Canada Disability Benefit outlining a clear timeline for a fully funded and adequate benefit
- Broaden CDB eligibility beyond the Disability Tax Credit through co-design with disability-led organizations
- Ensure provincial and territorial governments do not claw back the CDB by reducing provincial and territorial disability benefits, so people receive the full value of the CDB
- Embed measurable accessibility requirements across all major federal investments
- Clarify the impact of ESDC program reductions and consult disability-led organizations consistent with CRPD Article 4.3, and advance Articles 12 and 19 by protecting legal capacity and funding community-based supports
The Government of Canada cannot advance its growth and prosperity agenda – and Canada cannot reach its full economic potential – if people with disabilities continue to be undervalued and excluded.
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Alliance for Equality of Blind Canadians
Canadian Association of the Deaf (CAD-ASC)
Autism Alliance of Canada | Alliance canadienne de l’autisme
Canadian Cultural Society of the Deaf
Canadian Down Syndrome Society
CCRW
CNIB
Council of Canadians with Disabilities
Daily Bread Food Bank
Disability Without Poverty
Environmental Health Association of Canada
Environmental Health Association of Québec
L’Arche Canada
March of Dimes Canada
Muscular Dystrophy Canada
People First of Canada
Plan Institute
Realize Canada
Rick Hansen Foundation
Spinal Cord Injury Canada
Thunder Bay & District Injured Workers Support Group
Wavefront Centre for Communication Accessibility
Inclusion Canada
Independent Living Canada
Indigenous Disability Canada
Disability Alliance BC
About the National Disability Network
The National Disability Network (NDN) is a pan-Canadian coalition of over 40 member organizations committed to advancing inclusion, accessibility, and equity for people with disabilities in Canada. The NDN advocates for systemic change through collaborative policy development, government engagement, and community mobilization. It operates on the principle of “nothing about us, without us,” ensuring that people with disabilities are meaningfully involved in shaping the policies and programs that affect their lives.
Media contact
National Disability Network / Réseau national pour les personnes en situation de handicap
Email: info@nationaldisabilitynetwork.ca
