Children's Special Allowances vs Canada Child Benefit in Kinship Care

Two Separate Payment Systems That Cannot Overlap

The Canada Child Benefit (CCB) and the Children's Special Allowances (CSA) are both monthly payments from the CRA for the care of a child — but they can never be paid for the same child in the same month. Understanding which one applies to your situation determines whether you can receive the CCB directly or whether a child welfare agency receives the CSA instead.

The distinction comes down to one question: is a child welfare agency financially maintaining the child?

What the Children's Special Allowances Are

Under the Children's Special Allowances Act, when a government department, child welfare agency, or licensed child-caring institution "maintains" a child — meaning they have legal responsibility and are paying for the child's care — the agency receives the CSA directly from the CRA. The CSA equals the maximum CCB base amount plus the maximum Child Disability Benefit, with no income testing.

The agency receives this money, not the foster parent or kinship caregiver in the placement. It's meant to reimburse the agency for the cost of the child's care.

How "In-Care" and "Out-of-Care" Determine Your Benefits

Provincial child welfare systems use different terms across Canada, but the federal benefit distinction is consistent:

In-care (formal agency placement): The child is under the legal authority of a child protection agency. The agency claims the CSA. You, as the caregiver in the placement, cannot claim the CCB for that child — even if the child lives in your home, even if you're a blood relative.

Out-of-care (informal kinship arrangement): The child lives with you through a private family arrangement, without a child welfare agency maintaining them. No agency claims the CSA. You are fully eligible to apply for the CCB, the Child Disability Benefit, the Canada Learning Bond, and other federal supports.

The critical factor is whether an agency is claiming the CSA, not whether you have a court order. A grandparent with a private custody agreement is out-of-care. A grandparent caring for a child under a formal child protection placement may be in-care, depending on the province's arrangement.

What Happens When a Child Transitions Out of Agency Care

This is where things get complicated — and where delays happen.

When a child moves from a formal agency placement into a private kinship arrangement with you, the child welfare agency must notify the CRA to cancel the CSA. Until the agency files that cancellation, the CRA's system blocks any CCB application for the same child.

Here's the process:

1. The agency files a CSA cancellation notice with the CRA, specifying the date care transferred to you
2. You submit Form RC66 with the exact date the child started living with you outside of agency care
3. The CRA verifies the cancellation date with the agency
4. Once confirmed, the CRA approves your CCB effective the first day of the month following the agency care termination

If the agency is slow to cancel the CSA — and this happens — your CCB application sits in limbo. The CRA won't process two claims for the same child simultaneously. You can call the CRA at 1-800-387-1193 to flag the conflict, but resolution often requires the CRA's Validation and Controls department to contact the provincial ministry directly.

Provincial Programs That Add Confusion

Some provinces have their own kinship care support payments that complicate the picture:

• Ontario's Temporary Care Assistance (TCA) is a provincial social assistance payment for relatives caring for a child in financial need. It runs alongside the federal CCB, not instead of it — you can receive both.
• BC's Extended Family Program payments are provincial supports separate from federal benefits.
• Provincial kinship care maintenance payments may be non-taxable under Section 81(1)(h) of the Income Tax Act, meaning they don't affect your AFNI calculation for CCB purposes.

The key is distinguishing provincial support payments (which you can receive alongside the CCB) from the federal CSA (which blocks the CCB entirely).

How to Confirm Your Status

If you're unsure whether an agency is claiming the CSA for a child in your care, ask your provincial caseworker directly: "Is a Children's Special Allowance being claimed for this child?" If the answer is yes, the CCB won't be available until the CSA is cancelled.

If you've recently taken in a child from agency care and your CCB application isn't being processed, the most likely cause is an uncancelled CSA claim. Ask your caseworker to confirm the cancellation was filed with the CRA, and note the date they provide.

Our kinship caregiver guide includes a section on navigating the CSA-to-CCB transition, including what to write in Part 5 of Form RC66 when a child is leaving agency care and moving into your home.

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