The Canada Revenue Agency (CRA) has confirmed that starting in July 2025, families who are raising children with disabilities will receive a $2,000 increase annually through the Child Disability Benefit (CDB). This change is designed to help ease the financial challenges faced by families with extra caregiving responsibilities. The increase reflects the government’s commitment to supporting children with disabilities and ensuring their families have greater financial stability.
What Is the Child Disability Benefit (CDB)?
The Child Disability Benefit (CDB) is a monthly tax-free payment made to families who care for a child under the age of 18 with a severe and prolonged physical or mental impairment. It is paid along with the Canada Child Benefit (CCB) and aims to assist with the additional costs that come with caring for a child with a disability. The CRA determines the CDB amount based on the family’s income and the child’s eligibility for the Disability Tax Credit (DTC).
What Does the $2,000 Increase Mean for Families?
The newly announced $2,000 annual increase will be distributed monthly, meaning eligible families will receive about $166 extra per month on top of their existing CDB payments. This financial support can be used for anything from therapy and medical appointments to specialized education tools or home accessibility improvements. Families already receiving the benefit will not need to take any additional steps to receive the increase—it will be added automatically if they remain eligible.
Who Is Eligible for the Increased Benefit?
To receive the enhanced CDB, families must continue to meet the current eligibility requirements. The child must be under 18 years old and approved for the Disability Tax Credit (DTC) by the CRA. Additionally, the parent or guardian must be a Canadian resident and must file their annual income tax return on time. Benefit amounts may vary depending on the family’s adjusted net income. If you are newly applying for the DTC in 2025 and are approved, the increase will be included automatically.
When Will the Payments Start?
The enhanced payments will begin in July 2025 and continue monthly until June 2026. Payments will be issued on the same schedule as the Canada Child Benefit, usually around the 18th of each month. For example, the first increased payment will likely arrive on July 18, 2025. Families should check their CRA “My Account” for confirmation of their payment status, dates, and amounts.
How to Prepare for the Increased Benefit
While no new application is required for families already receiving the CDB, it is essential to ensure all relevant information is up to date. This includes confirming your Disability Tax Credit (DTC) approval is current, filing your 2024 tax return before the deadline, and updating any personal details such as marital status or address. These steps ensure there are no disruptions in receiving the boosted payment.
Frequently Asked Questions (FAQs)
Q1: Do I need to reapply to get the $2,000 increase?
A: No, if your child already qualifies for the Child Disability Benefit and the Disability Tax Credit, and you’ve filed your taxes, the increase will be added automatically.
Q2: Will the $2,000 be paid in a lump sum?
A: No, the $2,000 will be spread out over 12 months—meaning you’ll receive about $166 more each month.
Q3: What if I apply for the Disability Tax Credit in 2025?
A: If your application is approved in 2025, you’ll begin receiving the CDB payments, including the increase, starting the next payment cycle after approval.
Q4: How does my income affect the benefit amount?
A: The benefit amount is based on your adjusted family net income from the previous year’s tax return. Higher income levels may receive reduced benefit amounts.
Conclusion
The $2,000 increase to the Child Disability Benefit is a meaningful step forward in supporting Canadian families raising children with disabilities. With automatic monthly payments starting in July 2025, eligible families can expect a more reliable source of financial assistance without needing to reapply. It’s essential to keep all personal and tax information current to receive the full benefit. This boost reflects the government’s continued effort to improve the lives of children living with disabilities and the families who care for them.
