Canada Disability Benefit and Child Care Fee Subsidy Calculations

Ministry of Education
315 Front Street West
11th Floor
Toronto ON M7A 0B8
 

Date:                                      June 27, 2025

Memorandum to:         Consolidated Municipal Service Managers (CMSMs) and
                                                    District Social Services Administration Boards (DSSABs)

From:                                    Whitney Wilson 
                                                   Director, Early Years Branch
                                                   Early Years and Child Care Division

Subject:                             Canada Disability Benefit and Child Care Fee Subsidy Calculations

As you may be aware, the Canada Disability Benefit (CDB) is a new federal initiative designed to provide financial support to individuals with disabilities aged 18-64. Administered by Service Canada, the first CDB payments are expected to begin in July 2025.

On May 27, 2025, Ontario announced that CDB payments will be exempt as income to ensure that recipients can receive the full value of their entitlements without impacting their eligibility for other social supports.

The ministry recognizes that some individuals accessing child care fee subsidies may soon begin receiving CDB payments. We would like to clarify that these payments will not affect eligibility for the child care fee subsidy.

To ensure consistent application of O. Reg. 138/15 (Funding, Cost sharing and Financial Assistance) under the Child Care and Early Years Act, 2014, CMSMs/DSSABs must continue to assess income using only the most recent Notice of Assessment (NOA) or Canada Child Benefit Notice to assess income. As such, in-year income changes, including CDB payments, must not be factored into the calculation for individuals currently receiving the fee subsidy.

If you have any questions about calculating the fee subsidy related to applicants receiving the CDB, please submit your inquiry here: Early Years Support Request.

I look forward to our ongoing partnership as we continue this important work together. 

Sincerely,

Whitney Wilson
Director, Early Years Branch
Early Years and Child Care Division