Starting July 1, 2023, Ontario Disability Support Program (ODSP) rates increased by 6.5% and will be adjusted yearly based on inflation. And the federal government sent out a Grocery Rebate on July 5 with people’s GST/HST tax credit.
Starting July 1, 2023, Ontario Disability Support Program (ODSP) rates increased by 6.5% and will be adjusted yearly based on inflation. And the federal government sent out a Grocery Rebate on July 5 with people’s GST/HST tax credit.
The federal government has also just passed the Canada Disability Benefit Act, which creates a new benefit for working-age people with disabilities. Over the next year, the government will be working out details like who’ll be eligible and how much the benefit will be.
ODSP increase
ODSP increased by 6.5% on July 1, 2023. The basic ODSP rate for a single person with the maximum shelter allowance is now $1,308 a month. This is up from $1,228.
The 6.5% raise applies only to the core amounts like:
basic needs for singles and families
shelter maximums for singles and families
board and lodge amounts for singles and families
the maximum amount provided for a couple where both have disabilities
The 6.5% increase does not apply to several other benefits that ODSP recipients often get. This includes the Remote Communities Allowance, Special Diet Allowance, and the Pregnancy and Breastfeeding Nutritional Allowance.
There are no increases to Ontario Works (OW). If people have questions about their OW benefits, they should contact their caseworker. If they're having problems getting benefits, they can contact their local community legal clinic.
ODSP tied to inflation
ODSP rates are now indexed to the annual inflation rate. This means that once a year, ODSP rates go up by however much inflation went up that year. If there’s no change to inflation or if inflation rates go down, ODSP rates stay the same.
Inflation is calculated using the Consumer Price Index for Ontario, which measures how much the cost of things like food and housing have gone up or down.
New benefit to help Canadians with disabilities
The Canada Disability Benefit Act is now law. The Act sets out the framework for a new national benefit for working-age people with disabilities who are living on a low income.
The benefit will be added to existing federal and provincial disability supports.
The government has until June 2024 to make the regulations for how the benefit will work, including:
who is eligible
how to apply
how much the benefit will be
the appeal process
While these regulations should be made by June 2024, it will likely take longer before anyone can apply for and start getting the benefit.
People do not have to apply for the Grocery Rebate. But they need to have filed their 2021 tax return.
The amount of the Grocery Rebate is double what someone's GST/HST credit was in January 2023. For example, if someone got $117 as a GST/HST credit in January, their rebate will be $234.
People get the rebate and the GST/HST credit that they normally get.
Someone may be eligible for the Grocery Rebate, but not for July's GST/HST credit or the other way around. This is because the Grocery Rebate is based on their 2021 tax return. But the July GST/HST credit is based on their 2022 tax return.
People do not have to spend their Grocery Rebate on groceries. They can spend the money on whatever they choose.
