Canada is set to get a new federal benefit that pays Canadians up to $2,400 a year

The federal government has revealed that Canada is expected to get a new federal benefit.

It would give eligible Canadians payments of up to $2,400 each year.

This was announced in the federal government's Budget 2024 which was released on Tuesday, April 16.

As part of the plan to create "a stronger social safety net" in Canada, the government is launching a new Canada Disability Benefit to increase the financial well-being of more than 600,000 working-age people with disabilities.

It's meant to fill a gap in government support between the Canada Child Benefit and the Old Age Security for persons with disabilities.

Also, the new benefit would supplement existing provincial and territorial income support measures, not replace them.

Budget 2024 proposed funding of $6.1 billion over six years — starting in 2024-25 — and $1.4 billion each year after that for the new Canada Disability Benefit.

Canada Disability Benefit payments are expected to be made to eligible Canadians starting in July 2025.

That's after the regulatory process and consultations with people with disabilities are completed.

Maximum Canada Disability Benefit amounts would be $2,400 per year for low-income persons with disabilities between 18 and 64 years old.

It's estimated that over 600,000 low-income people with disabilities would be eligible to get money.

To ensure consistency of eligibility across the country, the Canada Disability Benefit would be available to people with a valid Disability Tax Credit certificate.

Budget 2024 also proposed that the cost of medical forms required to apply for the Disability Tax Credit would be covered by the federal government.

That's meant to ensure access to the benefit and address the associated financial barrier.

This article's cover image was used for illustrative purposes only.