We, the undersigned, urge the Ministry of Social Development and Poverty Reduction (MSDPR) in British Columbia (BC) to revise its policy on the treatment of unearned income for BC Persons with Disabilities (PWD) assistance recipients.

What is Unearned Income and Why Does It Hurt PWD Recipients?
Unearned income refers to money received from sources other than employment, such as dividends, interest, investment returns, inheritances, lottery winnings, income from a rental or sublet, disbursements from credit unions and financial gifts. For people receiving PWD assistance, the Ministry currently treats many types of unearned income as a direct reduction of their benefits. This policy penalizes financial responsibility and makes it impossible for PWD recipients to build a secure financial future.

This system contributes to broader housing insecurity and prevents people with disabilities from moving forward and having good financial health. When even small investment income is clawed back, PWD recipients are unable to plan ahead, budget for rising rent or food, save for property taxes and/or utilities, deal with emergency exepense or deal with utility cost spikes. The stress of knowing a modest return on savings will lead to a reduced check creates chronic instability and makes it impossible to move forward. Instead of using investment income to cover necessary home expenses, one can be forced to deplete limited savings—pushing us backward. The policy keeps people locked into survival mode, where financial planning is punished rather than rewarded.

Unlike employment income, which allows for some exemptions, unearned income is often deducted dollar for dollar. This means that individuals who invest wisely,  or save money are financially punished, discouraging long-term stability; remember savings accounts earn interest, so that amount would be clawed back. The policy actively prevents PWD recipients from growing their savings, preparing for emergencies, or improving their quality of life beyond the basic assistance provided by the government.

The Ministry has corrected the following:

"This flawed policy also contradicts the very purpose of disability savings plans, such as the Registered Disability Savings Plan (RDSP), which is supposed to help disabled individuals save for the future. In a letter (see: SDPR Letter for Unearned Income 2025) to us (Star J. and Michael H.) the Ministry told us they will deduct every dollar of unearned income received in an RDSP from our PWD check, PWD recipients are left without the ability to protect themselves financially in the long term. In another letter from one of the SDPR managers, they said RDSP Government Bonds and Grants are exempt."

The Ministry is now saying in a phone call that the letter mentioned above we received from their Executive Correspondence Services was incorrect in their statements about RDSPs. According to the Ministry representative we spoke with on the phone they told us RDSPs income such as dividends are exempt from clawbacks.

The Problem with Deducting Unearned Income

Cherry-Picking and Contradictions in the Unearned Income Policy

The Ministry asserts that individuals must use all available resources before accessing assistance (see: BC PWD Income Treatment & Exemptions), yet this is demonstrably false because the Ministry cherry-picks which types of unearned income to exempt, and that exempt income is not required to be used as it does not result in the denial of assistance or reduction of assistance unless this exempt income exceeds the asset limit. (see: Assets & Exemptions, Income Treatment & Exemptions) The asset limit for individuals is $100,000 and $200,000 for couples / Families on Persons with Disability Assistance (PWD).

Examples of exempted unearned income include:

• ICBC Permanent Impairment Benefits (as confirmed in the May 17, 2023 decision)
• GoFundMe donations (classified as a gift)
• ICBC Death Benefits
• The new Canadian Disability Benefit (CDB), despite also being unearned income (see: Provincial exemption means people in B.C. will keep full Canada Disability Benefit)
• GST and PST Federal Credit 
• RDSP Grants and Bonds 

Meanwhile, the Ministry penalizes smaller and less significant unearned income sources, including:

• Interest from savings and term deposits
• Dividends and distributions from investments
• A promotional bank bonus that could reasonably be classified as a gift
• RDSP interest and dividends, even though RDSPs are a recognized exempt asset (see above; This has been corrected and clarified by a Ministry Representative. They now tell us that RDSP income is exempt.)
• Lottery winnings

This selective and arbitrary approach to policy enforcement is unfair and harmful. The Ministry is cherry-picking exemptions without a consistent or transparent rationale, and it creates confusion, stress, and financial insecurity for recipients. If a $35,000 unearned income payment from the ICBC Permanent Impairment Benefit (see below: Our Background) is exempt, then it is completely illogical to penalize smaller amounts in interest, savings, or investment earnings.

This inconsistent application undermines trust in the system and discourages disabled individuals from saving, investing, or planning for their financial future, as they risk being penalized for doing so.

Discouraging Savings and Investment – The current policy penalizes those who attempt to be financially responsible. By deducting many forms of passive income like interest and dividends, the Ministry discourages PWD recipients from saving, investing, and achieving long-term financial security. This is fundamentally unfair and counterproductive, and it second classes a person financially because they cannot full participate in all that a bank offers.

There is no logical or fair reason why some unearned income is exempt while others are not. A few examples of exempt unearned income are: ICBC Death Benefits, ICBC Permanent Impairment Benefits, Go Fund Me and Gifts.

(see above; The statement below has now been corrected and clarified by a Ministry Representative. They told RDSP income is exempt.)

"Another instance of inconsistancy is RDSPs. They are an exempt asset under policy, yet the dividends and interest they generate are deducted from PWD according to the SDPR, directly discouraging PWD recipients from saving for the future."

The Issue with Asset Limits
PWD recipients are allowed to have savings up to an asset limit—$100,000 for individuals and $200,000 for couples. The purpose of these limits is to allow people to build financial security without losing their benefits. However, the Ministry’s unearned income deduction policy effectively nullifies the benefit of these limits.

For example, a person who responsibly saves $50,000 within the allowed asset limit and with a 2.95% (see: https://www.vancity.com/invest/term-deposit-gic/rates/) interest earns $1,475 in interest in a annually will see their PWD benefits reduced by $1,475 after they receive the interest usually on their next month’s check. This forces them to spend their savings on everyday expenses rather than allowing their money to grow over time.

This policy discourages financial responsibility, forcing PWD recipients to drain their savings just to maintain their benefits. The intent of asset limits was to provide financial security, yet the unearned income deduction policy undermines that completely.

(see above, "Exempt RDSPs Should Remain Exempt" has been corrected and clarified by a Ministry representative. They told us RDSP income is exempt.)

"Exempt RDSPs Should Remain Exempt – The Ministry currently takes the position that even interest or dividends from a Registered Disability Savings Plan (RDSP) are deducted dollar for dollar from PWD assistance. However, RDSPs are legally classified as exempt assets (See: Government of BC Assets and Exemptions Policy). If their growth is deducted, it defeats their entire purpose—to provide long-term financial security for persons with disabilities."

Misleading Policy on Unearned Income – The Ministry claims:

"The Employment and Assistance and Employment and Assistance for Persons with Disabilities programs require clients to pursue, accept, and use all other income to support themselves before receiving assistance. Exemptions for specific incomes are provided in the applicable acts, regulations, and policy." (See: Income Treatment and Exemptions Policy)

This statement is misleading because exemptions do exist, as demonstrated by our previously exempted lump-sum payment and exemptions outlined in the Income Treatment and Exemptions Policy. The Ministry's inconsistent application of this rule leaves recipients financially insecure and unable to plan for the future.

The approach with unearned income is inconsistent, unfair, and harmful, as it punishes recipients who are being financially responsible and who attempt to plan for short-term, mid-term and long-term financial security.

Precedents & Exemptions Already Granted
On May 17, 2023, we (Star J. and Michael H) went through and won a reconsideration for an ICBC Lump-Sum Benefit payment of about $35,000 that we received earlier that year which was deducted from our check. At first the Ministry determined that this unearned income was non-exempt unearned income. However, the Ministry later change that position, and the Ministry’s decision stated:

"Upon reconsideration of the information provided, the ministry has determined you should not be denied disability assistance for having unearned income that is more than the rate of assistance for your family unit." (see: https://drive.google.com/file/d/1FYHcrsat2cz6oiyH04hP9-KCH-BUZoWj/view?usp=sharing

This establishes a clear precedent that unearned income should not automatically disqualify or reduce PWD benefits. If the Ministry determined that a lump sum of $35,000 should not be deducted, then it is logically inconsistent to penalize much smaller amounts of unearned income. The Ministry is now contradicting its own past ruling by deducting other unearned income within the asset limit.

Under this ruling, all unearned income under the asset limit should be exempt, because if a large sum exceeding the assistance rate is exempt, then smaller, ongoing amounts must also be exempt under the same logic. It is unreasonable and contradictory to selectively exempt large windfalls while penalizing minor amounts of interest, dividends, investment income and other unearned income.

Additionally, lump-sum payments such as ICBC Permanent Impairment Benefits, GoFundMe donations, and ICBC death benefits were exempted from deduction, despite also being considered unearned income and being large amounts. These were under the asset limit. Also, the Canadian Disability Benefit has been exempted by the Ministry of Social Development and Poverty Reduction. (see: Provincial exemption means people in B.C. will keep full Canada Disability Benefit) These inconsistencies demonstrates that the Ministry already acknowledges that not all unearned income should be deducted, but it also shows that the Minstry cherry-picks what is and what is not exempt without reason.

Our Background

In April 2025, our (Star J. and Michael H.) BC PWD assistance check was reduced by $1,395.44 due to the receipt of dividends, a cash bonus for investing with our bank, and interest payments from the previous year— all classified as "unearned income." This policy is unfair and inconsistent with past precedents told to us (Star J. and Michael H.) in a reconsideration. We (Star J. and Michael H.) believe an updated unearned income policy was set on the May 17, 2023 decision.

We want to see the unearned income policy changed, so we and others in our position can grow financially and save, and we don't have to go through financial hardship and deplete our savings for earning modest investment amounts and being financially responsible. It makes no sense that an amount of about $35,000 from ICBC is exempt as unearned income and will not result in a reduction of Persons with Disability Assistance, but modest interest payments, investment and passive incomes returns are not exempt unearned income and will result in a reduction of Persons with Disability Assistance, yet both are considered unearned income.

What Needs to Change

We request that the Respectively Request the Honourable House Take the Following Action:

• Stop deducting interest, dividends, other investment income passive income, and other unearned income from PWD assistance when it is under the asset limit.
• Stop penalizing responsible financial behavior, so PWD recipients are not forced into unnecessary hardship.
• Revise the unearned income policy to allow PWD clients to create and have financial security and stability.
• Follow the past precedent set by our (Star J. and Michael H.) previous reconsideration for an ICBC lump-sum payment which basically establishes a clear precedent that unearned income should not disqualify or reduce PWD benefits.

PWD recipients deserve financial stability and the ability to save and invest for their future without being penalized. We call on the Government of British Columbia to correct this injustice immediately.

Sign this petition to demand fair treatment for Persons with Disabilities!