The break-even point for the new calculation is $13,200 — those earning more may be worse off
The proposed revamp of the Ontario Disability Support Program — though promised to provide recipients with “dignity” — would likely harm many of those recipients living in poverty, a study by Reegan Financial finds.
Currently, ODSP recipients can earn up to $200 of work income per month or $2400 per year, with each additional dollar earned reducing benefits by $0.50. The Ford government’s proposed revamp will calculate qualifications annually, while allowing recipients to earn up to $6,000 per year in work income, without clawbacks. Beyond that, however, each dollar earned would reduce benefits by $0.75.
For those earning below $6000 per year, Reegan financial adviser Ron Malis told PressProgress, the revamp is an improvement over the existing rules. But, Malis said “the break-even point — where someone would do no-better and no-worse with the rule change — is $13,200 per year, in net income. Above that $13,200, the recipient does worse under the new rules”.