Alberta Claws Back Federal Disability Benefit, Leaving AISH Recipients No Better Off

default

An Unfair Letter in the Mail

When Crystal of Red Deer received a letter from Alberta’s AISH program in early July 2025, she braced herself for good news: a new $200-per-month Canada Disability Benefit (CDB), was finally being extended to persons with disabilities. Instead, she found that the UCP government would simply claw back that exact amount from her existing AISH support, leaving her net monthly income unchanged. “I think what they’re doing is very greedy and very cruel,” she told the Red Deer Advocate about the unexpected deduction. “I don’t think they should be taking anything off. How do we get ahead?”

The Promise of the Canada Disability Benefit

In Budget 2025, the federal government introduced the Canada Disability Benefit to help lift low-income Canadians with disabilities to the combined level of Old Age Security and the Guaranteed Income Supplement—$1,814 per month. Unlike targeted provincial programs, the CDB was designed as an ‘on-top-of’ transfer, meaning recipients could keep the full amount without offset against existing supports.

However, Alberta’s Ministry of Assisted Living and Social Services announced that AISH clients must apply for the CDB by September 5, 2025. Those who do, will see a $200per-month clawback from their AISH core benefit, effectively nullifying any real gain. Recipients who fail to apply, risk seeing an even larger cut, come October.

Real-World Impact on Vulnerable Albertans

For many AISH recipients, the application process itself poses a significant hurdle. Crystal described the added paperwork as “stressful,” worrying that the deadline and complex forms could disqualify some of Alberta’s most vulnerable citizens—or subject them to harsh penalties if they miss the cutoff. Seniors and persons with cognitive or mobility impairments may struggle to navigate federal applications without additional support.

Marie Renaud, Alberta NDP’s Shadow Minister for Community and Social Services, slammed the policy rollout. “Danielle Smith made a deliberate choice to claw back the new federal disability benefit from some of Alberta’s poorest citizens,” Renaud charged. “It’s a cruel policy, followed by a shockingly incompetent rollout.” She warned that cuts and de-indexing of AISH benefits under the UCP, have already driven more Albertans to food banks, shelters, and emergency care.

The Government’s Justification

In defending its decision, the UCP government points out that Alberta already provides the highest disability supports of any province. AISH core benefits average $1,901 per month, with additional personal and medical benefits worth around $400—totaling over $2,300 in tax-free benefits monthly. That is $533 more than Ontario’s program, $515 more than Saskatchewan’s, $417 more than B.C.’s, and $554 more than Manitoba’s. Through Budget 2025, Alberta pledged to invest $3.6 billion in disability supports, a year-over-year increase of $150 million.

Amber Edgerton, press secretary for the Ministry of Assisted Living and Social Services, said the province “is happy to see the federal government stepping up to help support low-income Canadians with disabilities”, but maintained the claw back ensures the combined total stays consistent with current rates. In her view, this approach “invites our provincial counterparts to match Alberta’s generous rates,” rather than increasing overall support.

Broader Context and Next Steps

This decision reignites a long-running debate over whether provincial governments should top up federal transfers or integrate them into existing frameworks. Advocates  perpetuating barriers for persons with disabilities. Others counter that Alberta’s robust AISH program already outpaces most provinces.

For recipients like Crystal, however, the debate feels academic. They simply want the supports they were promised. Community organizations are calling for an extension of the application deadline, better assistance for those with mobility or cognitive challenges, and a reversal of the claw back policy so recipients actually see the full federal increase.

What You Can Do

  1. Contact your MLA. Let your local representative know how the claw back affects you or your loved ones.
  2. Raise awareness. Share your story with advocacy groups and on social media using #FairAISHFunding.
  3. Support advocacy campaigns. Donate or volunteer with organizations pushing for policy changes.

By speaking up, you can help ensure Alberta’s disability support programs truly lift people out of poverty – rather than keeping them stuck at the same level.

Learn more about this here: https://www.reddeeradvocate.com/localnews/aishrecipientsdenied200increasebyucpgovernment8126498

If you or a loved one have been involved in an accident, you know how devastating the consequences can be. That's why having an experienced personal injury lawyer on your side is crucial to help you navigate the legal system and obtain the compensation you need to cover your medical bills, lost wages, and long-term care in Alberta.

At Pipella Law, we understand the challenges you are facing, and we are here to help. Our team of dedicated car accident lawyers in Calgary will conduct a complete investigation of your case and work with leading consultants to build a strong case on your behalf.

Contact us today at (403) 265-8733 to schedule a free consultation and learn more about how we can help you get the compensation you deserve - You don't pay unless we win.