#FinancialFridays: Indexing ODSP

The Ontario Disability Support Program (ODSP) is a monthly income program for people with disabilities. The amount someone gets each month is based on a formula: Basic Needs Allowance + Shelter Allowance.

For a single adult, the Basic Needs Allowance amount is $786/month. The Shelter Allowance is based on the amount someone pays for housing, including rent/mortgage, utilities, and house/renter’s insurance. The maximum amount for a single adult is $582/month. If their housing costs are more than that, they will only ever receive the maximum of $582/month. If their housing costs are less than $582/month, they will only get the amount of their actual housing costs.

So, a single adult can get a maximum of $1,368/month.

When I started working for the United Way in 2021, the maximum ODSP payment for a single adult was $1,169/month. In July 2023, ODSP rates were increased by 6.5% and indexed to inflation. That means, each year in July ODSP amounts will increase at the rate of inflation.

While the actual amounts are inadequate to meet most people’s basic needs and shelter costs, it is a positive thing that the income support is indexed. The official poverty line in Canada for a single adult was $28,863/year in 2022, which is $2,405/month (Low-income measure (LIM) thresholds by income source and household size (statcan.gc.ca)). Before being indexed, people would get the same amount of money year to year but what they could actually buy with that amount was less.

To learn more, read this article from Maytree Canada, a not-for-profit organization helping to lower poverty levels in Canada:

Too many income supports still aren’t indexed (maytree.com). Thank you, Maytree, for all your work.