Candid Comment - Trapped in Poverty: How ODSP Rules Punish Couples and Those Who Work Creating More Poverty

 

First off, no one in their right mind would suggest that there should be no checks and balances regarding the Ontario Disability Support Program. Taxpayer's money funds the program; therefore, it is incumbent that the program be managed to avoid or mitigate fraud and abuse of the system. This said, the system itself is fundamentally flawed in that it forces those needing it to essentially impoverish themselves to receive funding, this affects all aspects of peoples lives. How does it do that? In this article, I will explore that and also point to some suggestions for fixing this system, which frankly is biased and ultimately is a form of ableism.

Instead of fostering financial stability, the ODSP rules often trap individuals into poverty. These rules force difficult choices, and even incentivize separation for common law and married people and force those who work full-time to reduce hours to avoid breaching the strict rules regarding income. Imagine losing hundreds of dollars of your check due to you or your partner's income. A person on the program or their partner is allowed to work but, the income earned must not exceed $1,000.00. Above this amount, a person on ODSP will face a deduction of 0.75 per dollar on their check. So a person receiving $1,500 in earned income would see their or their partner's check reduced by $375.00. Many people with disabilities live in geared to income housing. Increase income would also mean increasing rent. The result, less money for food and the inability to get much needed medications and other necessities to live.

Consider this hypothetical scenario: Two individuals, each receiving ODSP benefits of around $1,300 per month, decide to marry. Their combined ODSP benefits after marriage could be significantly less than $2,600. The reduction is often justified by the government as a measure to prevent fraud and ensure efficient resource allocation. However, this rationale overlooks the fundamental right of individuals with disabilities to form meaningful relationships without being financially penalized. This is also true if only one person is on ODSP. The person who makes a high wage causes the ODSP recipient to be adversely affected by the person who works income.

 

It's insane to ask people to deliberately impoverish themselves to access ODSP and geared to income housing. Own property that is deemed non-exempt, ODSP will order you to sell it. You are allowed certain assets like an RRSP but, you have to be careful not to sell and draw money from them, or you may become ineligible for support. 

The Ontario Disability Support Program (ODSP) is not a “failed system” in an absolute sense. However, it does face significant and well-documented challenges that have led many to call for substantial reforms.

What ODSP Does Well

1. Basic financial and health support: ODSP provides income support and health benefits to Ontarians with disabilities who qualify.
2. Employment supports: It offers programs to help recipients find and maintain employment.
3. Stability: For many, ODSP is the only stable source of income and medical coverage available.

Major Problems and Criticisms

Inadequate Rates. As of 2025, the maximum income support for a single individual is around $1,308/month, far below the poverty line in most Ontario cities.

 
This makes it nearly impossible to afford rent, food, and other essentials, especially in urban areas. Here are the reasons why:

A slow and complex application process. Long wait times, excessive paperwork, and difficulties in proving disability, especially with “invisible” disabilities (e.g., mental health conditions) create barriers for those seeking to access the program. Other impediments include: 

1. Punitive System Design Earning income can result in benefit clawbacks, discouraging part-time work or entrepreneurship.
2. There are strict assets and income limits, making it hard for recipients to save or plan long-term.
3. Stigma and Bureaucracy.
4. The system often feels adversarial rather than supportive. Recipients may feel surveilled or judged.
5. Reviews and appeals can be traumatic and demoralizing, especially for people with chronic conditions.
6. Lack of Indexing and Inflation Adjustment.
7. ODSP rates have historically not kept up with inflation, eroding their value over time.
8. Recent increases (like the 5% hike in 2022) were considered too little, too late.

Disability advocates, social policy experts, and many ODSP recipients describe the system as:

“Broken”, “dehumanizing”, or “out of touch” with the real cost of living.

Not meeting its mandate to allow people with disabilities to live with dignity and independence.

Dignity, economic security, health, and social inclusion are supposed to be what the program encourages. So what should be done to make that a reality? Here are some ideas:

ODSP is not entirely failing, but it does fail many of the people it’s meant to help, especially when it comes to ensuring that the program meets the mandated goals for which it was created.

Reforming ODSP to be more humane, adequate, and supportive is a frequent recommendation among advocates and policy experts. Across Canada, policy analysts, advocacy organizations, and economists are proposing a range of ODSP reforms to address its shortcomings. The idea is to increase dignity, financial stability, and opportunity for people with disabilities to live and be a part of society.

What Are The Recommendations:

Raise Benefit Rates

What: Immediately raise monthly payments to meet or exceed the Market Basket Measure (poverty line).

Why: Current rates (~$1,308/month) are not enough for rent, food, or basic needs in most Ontario cities.

Examples: Many recommend a base of $2,200/month to reflect actual living expenses.

Index Rates to Inflation

What: Automatically increase ODSP benefits annually based on inflation (CPI).

Why: Prevents purchasing power from eroding over time, as has historically happened.

Improve Earnings Exemptions

What: Raise or eliminate the income clawback thresholds (currently starts after $1,000/month).

Why: Clawbacks penalize those trying to work part-time or freelance. Encouraging employment should not lead to poverty traps.

Model: British Columbia allows up to $15,000/year in earnings without clawbacks.

Streamline and Humanize the Application Process

What: Reduce paperwork, speed up processing, and recognize episodic and invisible disabilities (e.g., mental illness, chronic pain).

Why: Many people are rejected due to narrow definitions or excessive bureaucracy.

End Punitive Surveillance Practices

What: Stop treating recipients like potential fraudsters. Shift to a trust-based model.

Why: The current system often feels intrusive, with fears of benefit loss over minor infractions.

Allow Savings and Asset Building

What: Increase or remove asset limits (currently around $40,000 for singles).

Why: People on ODSP should be able to save for emergencies, housing, or education without losing eligibility.

Integrate Housing and Disability Support

What: Link ODSP with affordable housing programs directly.

Why: Rent is the highest expense, and housing insecurity undermines all other supports.

 Include Lived Experience in Policy Design

What: Involve ODSP recipients and disability advocates in decision-making roles.

Why: Policies typically fail because they are built without input from those affected.

 Who’s Calling for These Changes?

Disability Without Poverty

Income Security Advocacy Centre (ISAC)

Ontario Human Rights Commission

Maytree Foundation

Toronto Foundation

ACORN Canada

Many of these groups stress that incremental changes are not enough, a full transformation is needed to make ODSP a true disability rights program instead of just a survival system.

So, to summarize, ODSP is not entirely failing, but it does fail many of the people it’s meant to help, especially when it comes to ensuring that the program is efficient, effective, transparent, and supportive.

Doug Fords government appears to be more interested in building subways, roads, tunnels, and condos. This while many live in tents in parks under bridges. And while those on ODSP and other supports struggle to survive. In a country that is considered to be among the wealthiest in the world, it's unacceptable to allow this to be the normal for any, let alone the disabled. In an era of tariffs and the need to build our economy, would it not be wiser to create more opportunities for those who can work who are on supports? If Canada and Ontario are going to pivot to a new norm, then a strategy that includes allowing the disabled to integrate into society will help. The future must include the disabled, continuing to ignore the reality that they are in society is not the answer. Creating real solutions and inviting the disabled to help drive the economy is.