CYFSA and Kinship Care in Ontario: What the Law Means for Relative Caregivers

What the CYFSA Is and Why It Matters to You

The Child, Youth and Family Services Act, 2017 — the CYFSA — is the Ontario law governing how Children's Aid Societies operate, how children in need of protection are placed, and what financial supports flow through the child welfare system. If a CAS is involved in your grandchild's or relative's child's life in any way, the CYFSA is the statute behind the decisions being made.

For kinship caregivers, the CYFSA matters because it creates the legal categories that determine which payments you can and cannot receive. The label a CAS puts on your arrangement is not just paperwork — it directly controls your eligibility for Temporary Care Assistance, foster per diems, and CAS discretionary funds.

The Three CYFSA Care Categories

The CYFSA recognises three distinct kinship arrangements, each with different financial consequences:

Kinship Service — The CAS assesses and approves your home for the child, but the child is not taken into formal society care. You are caring for the child under supervision, not as a licensed foster parent. Under this arrangement, you may qualify for TCA ($274/month for the first child in southern Ontario) if the child and caregiver meet TCA criteria, and you may apply for the Canada Child Benefit and Ontario Child Benefit if you meet their eligibility rules. The CAS may also provide discretionary start-up funds for beds, car seats, or clothing. Those CAS payments are explicitly exempt as income under Ontario Works rules and do not reduce your TCA.

Kinship Care (Formal Foster Placement) — The child is in the legal care of the CAS, and the society places the child with you as a licensed or approved foster caregiver. You receive the CAS foster per diem (approximately $900 or more per month), but you are not eligible for TCA. The Canada Child Benefit also shifts — the CAS receives the federal Children's Special Allowances instead of you receiving the CCB directly.

Customary Care — For First Nations, Inuit, and Métis children, the CYFSA allows culturally appropriate care declared by the child's community through a Band Council or community authority. Customary care has its own funding structure administered through Indigenous Child and Family Well-Being Agencies, often matching foster per diem rates.

Why the Label Matters More Than You Think

The difference between Kinship Service and Kinship Care is not just terminology — it is the difference between keeping your TCA and CCB or losing them. If a CAS worker suggests moving your arrangement from Kinship Service to formal Kinship Care (full foster licensing), understand what changes financially before agreeing:

For some families the foster per diem is the better financial outcome, especially if the per diem exceeds the combined TCA + CCB + OCB total. For others — particularly grandparents who do not want to go through the full foster licensing process — Kinship Service preserves more independence and keeps federal benefits in your hands.

The CYFSA's Kinship Care Framework

The CYFSA provides the framework for Kinship Service, formal Kinship Care, and customary care. These pathways allow relatives and Indigenous communities to be considered as placements, with the care category affecting the available funding and benefits.

What Happens When a CAS File Closes

If a CAS closes its Kinship Service file — because the protection concern is resolved or the family situation has stabilised — the closure ends CAS discretionary funding but does not affect your TCA or CCB. Those payments continue uninterrupted as long as you remain the child's primary caregiver and the child meets the eligibility criteria.

Our Ontario Kinship Financial Help guide includes a full breakdown of every CYFSA care category with a decision flowchart showing exactly which payments apply to your arrangement, plus the documentation you need to protect your benefits if a CAS changes the care classification.

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