Experts agree mechanism to distribute aid misses many Canadians who need it
While the Canadian government appears to be pulling few punches in its efforts to help those financially affected by the COVID-19 pandemic, a program aimed at helping disabled individuals is likely to fall short of reaching all its intended beneficiaries.
On June 5, the federal government announced that Canadians living with disabilities may get a one-time payment of $600 to help ease the financial strain imposed by the coronavirus pandemic. Notably, the benefit is open to individuals who qualified for the Disability Tax Credit (DTC) as of June 1, 2020.
The specifics of payment vary depending on certain circumstances surrounding the prospective recipients. As explained by Jamie Golombek, CIBC Private Wealth Management’s managing director for Tax & Estate Planning, in a piece for the Financial Post, those who quality for the DTC will get an automatic payment of $600.
For seniors who are eligible for the DTC and for the OAS pension, and who are already getting the previously announced $300 special one-time seniors payment, the one-time disability benefit will amount to an extra $300. Meanwhile, low-income seniors who qualify for the DTC and the Guaranteed Income Supplement, and who will be benefitting from the special one-time seniors payment of $500, will receive an additional disability payment of $100.
For children under 18 who qualify for the DTC, the $600 special payment will be made to the parent or guardian considered as primarily responsible for their upbringing under the Canada Child Benefit. Should the child be under shared custody, each parent will get an equal $300 share of the payment.
However, the DTC hurdle may prove too high for many others. Michael Prince, professor of social policy at the University of Victoria, said in a Global News report that the 1.2 million DTC-eligible Canadians who can access the program are just a fraction of the six million people in the country who say they have a disability that impacts their daily life.
Krista Carr, executive vice president of the Canadian Association for Community Living (CACL), also described the DTC as “a very imperfect mechanism” for distributing the payment to disabled Canadians.
“It’s a very onerous process,” Carr said, noting that individuals must go through a paid consultation with a physician or other qualified health professional to confirm that they are eligible for the credit. Beyond the cost barrier, she said that medical professionals often struggle to understand the eligibility guidelines and correctly fill the forms.
Carr also noted that CRA staff may not be equipped to make the best judgments on a person’s eligibility for the credit. And even after getting approved for the DTC, some Canadians reportedly wind up losing it after several years, even if their attending physician say their condition hasn’t changed.
But even with its shortcomings, critics acknowledge the DTC-linked process is better than some other alternatives. Administering the aid through provincial and territorial programs could leave out families with children with disabilities, as only adults are eligible for social assistance. And by using the DTC program as a vehicle, the government will be able to “get the cheques out quickly,” Prince noted.
