ODSP Changes in 2023

In September 2022 the provincial government increased Ontario Disability Support Program (ODSP) core allowance rates by 5%. As a result, the basic monthly benefit for a single person on ODSP went from $1,169 to $1,228, an increase of about $59 per month. Amounts available through the Assistance for Children with Severe Disabilities (ACSD) also increased by 5% in September 2022. Beginning in July 2023, ODSP core allowances and ACSD amounts was indexed annually to account for inflation.

However, this ODSP changes in 2023 only applies to core allowances increase; it does not affect other aspects of the program, including the Special Diet Allowance (worth up to $250 per month), the pregnancy/breast feeding nutritional allowance ($40 per month), and the Personal Needs Allowance ($149 per month). And these amounts will not increase with inflation in the coming years.

The provincial government’s Fall Economic Statement in November 2022 revealed more changes to the Ontario Disability Support Program, taken effect in February 2023.

For those who can work, the province increased the amount of money someone on ODSP can earn before their benefits are impacted. Now recipients can earn up to $1,000 per month without their benefits being impacted; those earning more than that keep 25 cents on the dollar. ODSP recipients should see this change reflected in their March 2023 payments. (In 2023, ODSP payments are made on the last weekday of every month.)

This chart shows that as work income increases above $1,000, ODSP benefits will decrease, but work income will always result in an increase to total income.

SOURCE: Community Living Ontario

This change will have the most benefit for people who earn around $1,000 per month, as shown in the chart above. For others the change will make only a small difference. Before this change, people were able to keep $200 per month without ODSP being reduced, and fifty cents of every dollar after that.

The government estimates these changes would allow the approximately 25,000 individuals currently in the workforce to keep more of their earnings and could encourage as many as 25,000 more to participate in the workforce.

It is important to understand both the amount before claw backs (growing from $200 to $1,000 per month) and the claw back rate (growing from $0.50 to $0.75 of every dollar about the threshold). Community Living Ontario advises: “If you or someone you know is on ODSP and thinking about working more because of this change, talk to your ODSP worker first. It is always important to understand how a person’s ODSP cash, housing, medical and other benefits will be affected by having more work income.”