Multinational Firms to Administer Alberta’s Overhaul of Disability Employment Services

Alberta is set to launch a restructured disability employment system on July 1, with the administration of services to be managed by Canadian affiliates of large international firms. According to procurement documents made public, AKG Canada, whose parent company is based in Australia, has been awarded a $47 million, five-year contract to provide services in Edmonton and northern Alberta. Serco Canada, an affiliate of the U.K.-based contractor, will oversee services for Calgary and southern Alberta, under a five-year contract valued at $51 million.

The new system, the Alberta Disability Assistance Program (ADAP), will operate alongside the province’s existing Assured Income for the Severely Handicapped (AISH) program. However, thousands of current AISH recipients will be transitioned to ADAP under new eligibility standards. The province estimates that 26,800 ADAP clients will be referred to the prime contractors during the intake period spanning July 1, 2026, to June 30, 2029. An optional two-year contract extension could add approximately 2,900 more referrals.

Under the ADAP model, AKG Canada and Serco Canada are tasked with referring clients to existing employment service providers rather than delivering services directly. In Edmonton and Calgary, the contractors must establish a minimum of five in-person offices per city, located downtown and in each quadrant, to provide client assessment, employment action plans, case management, and peer support. In mid-sized cities and other regions, the contractors’ role is limited to referring clients to service providers. The contractors will also oversee services for 'Stream C' clients—individuals receiving income support who are assessed as able to work but face barriers such as criminal records, addictions, or mental health conditions.

Most current AISH recipients will be automatically moved to ADAP unless they meet specific criteria for remaining on AISH. Individuals with severe and profound developmental disabilities, residents of continuing care homes, recipients of Persons with Developmental Disabilities (PDD) services, or those with palliative or terminal medical conditions will continue on AISH. Those transitioning to ADAP who believe they should stay on AISH must reapply to the program.

The province has stated that ADAP is intended to empower Albertans with disabilities to gain and retain meaningful employment. Jonah Pickle, press secretary for Assisted Living and Social Services Minister Nathan Neudorf, indicated that the prime contractor model is meant to provide a single, coordinated pathway to personalized assessments, employment services, and wraparound supports, reducing the need for clients to navigate multiple services independently.

However, the transition has generated concern among many AISH recipients. Some individuals have expressed apprehension about being required to work or take on additional employment hours beyond their capacity, citing worries that their medical conditions may preclude sustained work. Disability advocates and at least five Alberta municipalities have called for the province to halt the ADAP rollout, pointing to reduced benefits and the challenges of finding accessible and accommodating workplaces. Alberta does not have workplace accessibility legislation.

A financial analysis by Gillian Petit at the University of Calgary found that under ADAP, a recipient would need to work 39 hours per week at minimum wage to receive the same benefits as those available under AISH, once taxes and other deductions are considered. Currently, AISH allows a single recipient to retain up to $1,072 monthly in employment income on top of a $1,940 personal benefit before clawbacks apply. For those remaining on AISH after July 1, this exemption drops to $350. Under ADAP, the earnings exemption is $700 per month, and clients will receive $200 less per month than under AISH after an 18-month transition period concluding January 1, 2028.

The province has defended its approach by contrasting it with Ontario’s 2019 overhaul of its disability employment system, which also introduced a model using large service system managers—comparable to Alberta’s prime contractors. Reports by Community Living Ontario and the Ontario Disability Employment Network, based on surveys of service providers, found that Ontario’s changes increased administrative tasks, reduced funding by 40 percent, and tied performance-based funding to employment outcomes, specifically jobs of at least 20 hours per week. These changes, the reports said, led providers to prioritize clients with fewer employment barriers, reducing support for those with greater needs. Some agencies reduced or ended services as a result.

Shawn Pegg, director of social policy and strategic initiatives at Community Living Ontario, stated that Ontario’s model incentivized service providers to focus on clients who could be placed in jobs quickly, thereby disadvantaging individuals facing more substantial barriers. Pegg said the policy worked against increasing access to the job market for people with disabilities and noted that Ontario’s system has remained unchanged despite feedback on its shortcomings.

Alberta’s government has emphasized that its model differs from Ontario’s. The province says that client referrals to prime contractors will be made by the ministry, not the contractors themselves, and that funding for service providers is not contingent on clients securing employment or working a specific number of hours per week. The province also maintains direct agreements with employment services providers, rather than delegating this responsibility to prime contractors.

St. Albert MLA Marie Renaud, the NDP Opposition critic for assisted living and social services, has voiced concerns about the transition, citing distress among AISH recipients and a lack of information about the new program. Renaud, who previously directed an employment program for people with intellectual disabilities, said the ADAP employment plan appears to have been developed with minimal input from people with disabilities. She expressed apprehension that the program may serve as a means to reduce benefits, thereby undermining the stability of recipients.

The changes in Alberta follow a broader trend of reforming disability employment services in Canada, with the stated aim of increasing workforce participation among people with disabilities. The province has positioned the ADAP rollout as an effort to streamline access to employment supports, while critics remain concerned about the adequacy of benefits, the accessibility of workplaces, and the potential for increased administrative barriers similar to those experienced in Ontario.