DISABILITY INCOME IN CANADA: 2018-2019 John Stapleton & Anne Tweddle

DISABILITY INCOME IN CANADA: 2018-2019 John Stapleton & Anne Tweddle September 2020

Throne Speech adds Disability income program 2020 Expected to be like GIS for persons with disabilities Questions: Will it replace social assistance? Will it provide a floor for all people with disabilities? With the definition be based on the Disability tax credit (DTC), veterans disability programs and CPP-D? If so, will social assistance still be in place for 50 percent of people with disabilities who are poor? Will most of those be people with psychoses and neuroses ( who are missed? How will the program mesh with the 9 other income security programs/systems in Canada (CPP D, EI sickness, CWB –D, the Disability tax credit, social assistance , RDSP’s, Veterans, auto accident insurance, private sector plans, and Workers comp.?

What do directions in programs spending tell us? Three slides: Total expenditures in 2018-19 Increases over the years Increases in social assistance disability component over time that illustrate the ‘welfareization of disability incomes’.

ESTIMATED BENEFIT EXPENDITURES FOR PERSONS WITH DISABILITIES CANADA 2018-19 37.8 B Disability Tax Measures 3.6 Private Disability Insurance 7.6 B CPP-D & QPP-D 5.0 B Workers' Compensation 5.9 B EI Sickness 1.8 B Veterans' Disability Pensions & Awards 2.5 B Social Assistance Disabled Component 11.4 B

INCOME SUPPORT FOR PERSONS WITH DISABILITIES BY PROGRAM: PERCENTAGE CHANGE IN ESTIMATED EXPENDITURES 2005-06 TO 2018-19 CANADA 120.0% 109.9% 106.0% 100.0% 91.1% 80.0% 70.5% 53.4% 60.0% 40.0% 32.0% 21.8% 20.0% 0.0% Di y li t i b sa x Ta es r su ea M D PP C & ss e n ck i S EI -D P P Q r te e V il i b a is D s' an ty ns o i ns e P & ds r a Aw ce n a st i ss A l ia c So d le b sa i -D n ce n it o ra a s u s n In pe y t om il i C b a s' r is e D k e or at W v i Pr nt e n po m Co

ESTIMATED INCOME SUPPORT EXPENDITURES FOR PERSONS WITH DISABILITIES: PERCENTAGE CHANGE FROM 2005-06 TO 2010-11 AND 2005-06 TO 2018-19 CANADA 100.0% 91.1% 90.0% 80.0% 70.0% 62.4% 60.0% 52.5% 50.0% 40.0% 30.0% 20.0% 10.0% 30.2% SA FOR PERSONS WITH DISABILTIES (Incl. First Nations SA, AISH and SAID) 23.2% 20.8% TOTAL INCOME SUPPORT FOR PERSONS WITH DISABILITIES 0.0% % change 05-06 to 10-11 TOTAL INCOME SUPPORT FOR PERSONS WITH DISABILITIES EXCL. SA % change 05-06 to 18-19

Comments Almost 38 billion spent in 2018-19 on disability incomes from most sources by three levels of government and private sector Money comes from insurance premiums, general expenditures, & payroll taxes Disentanglement is difficult Pressures will exist hydraulically for the new program to pay more while others pay less Although other program areas like disability credits and EI have grown fastest, social assistance (with a larger base) has grown the most.