9.1 — Employment and training start up benefit, the Participation Benefit and up front child care costs
April 2026
Summary of policy
Employment and Start Up Benefit (ESUB) and Participation Benefit – ESUB
In non-Integrated Employment Services (IES) sites, eligible members of the benefit unit may receive up to $500 in any 12-month period to assist them with costs to:
- begin, change or maintain employment
- begin, change or maintain an employment assistance activity under the Ontario Works Act, 1997
- begin, change or maintain any other activity intended to assist the person to become and stay employed that is approved by the Director
In IES sites, the ESUB is known as the Participation Benefit – ESUB
Eligible members of the benefit unit may receive up to $500 in any 12-month period to assist them with costs associated with an approved activity that addresses barriers to employment and will move the ODSP recipient and eligible family members closer to employment services.
It may also be issued to support an employed member of the benefit unit who has not been referred to employment services but requires support to maintain their employment.
Up-Front Child Care Benefit
Eligible members of the benefit unit may receive financial assistance with up-front child care costs that are reasonably necessary and, in the opinion of the Director, the eligible member is required to pay in advance to allow the person to:
- begin, change or maintain employment
- begin, change or maintain an employment assistance activity under the Ontario Works Act
- begin, change or maintain any other activity intended to assist the person to become and stay employed that is approved by the Director
Legislative authority
Sections 38.2 and 44(1) 6 and 44 (1) 7 of the ODSP General Regulation
Summary of directive
The Employment and Training Start-Up Benefit (ESUB) is available to eligible members of the benefit unit to assist them with expenses approved by the Director and reasonably necessary to begin, change or maintain employment, begin, change or maintain an Ontario Works employment assistance activity, or begin, change or maintain an activity approved by the Director that will assist the person to become and stay employed.
The Participation Benefit – ESUB is available to eligible members of the benefit unit to assist them with expenses approved by the Director and reasonably necessary to address barriers to employment and will move eligible members of the benefit unit closer to employment services.
The Up-Front Child Care Benefit is available to an eligible member of the benefit unit when in the opinion of the Director they are required to pay in advance for child care that is reasonably necessary to permit the person to begin, change or maintain their employment or employment activity.
Intent of policy
For non-IES sites, ESUB is intended to help ODSP recipients and eligible family members with reasonable costs related to employment or training. This can include costs related to finding a job (e.g., a transit pass), preparing for an interview (e.g., coaching); or meeting job qualifications (e.g., licensing fees).
For IES sites, Participation Benefit – ESUB is intended to help with costs associated with an approved activity that addresses barriers to employment and will move the ODSP recipient and eligible family members closer to employment services.
The Up-Front Child Care Benefit is intended to help ODSP recipients and eligible family members with costs of child care that is required in advance by the child care provider and necessary to allow the person to begin, change or maintain employment or an activity that helps the person become and stay employed (e.g., job shadowing).
Application of policy
Eligibility
Employment and Training Start-Up Benefit (ESUB) and the Participation Benefit – ESUB
Eligible members of the benefit unit include:
- recipient
- spouse included in the benefit unit
- dependent adult who is not attending secondary school full time
- dependent child who has received their secondary school diploma (or equivalent)
A maximum of $500 in any 12-month period is available to eligible members of the benefit unit.
The benefit may be paid to a person in a lump sum, or as needed over a 12-month period, but may not exceed the maximum amount. If a portion of the benefit has been issued within the 12-month period, the balance may be issued at any time in the 12-month period from the date of the original payment.
In non-IES sites, eligible members may receive the benefit if they are participating in employment activities, including:
- accepting full-time, part-time or casual employment
- changing jobs (i.e., a new job with a current or new employer where the duties and responsibilities are substantially different from the previous job)
- beginning a formal program of employment-related training that enhances progress toward financial independence
- shifting from unpaid job-training to paid work
- beginning or maintaining an "on-the-job" portion of a training program
- beginning, changing or maintaining a self-employment activity
- beginning, changing or maintaining an employment assistance activity under Ontario Works
- beginning, changing or maintaining any other activity intended to assist the person to become and stay employed, that is approved by the Director
Eligible costs for ESUB may include, but are not limited to:
- transportation costs related to preparing for, finding or starting a job
- costs for clothing for a job interview or work clothes/uniforms required for a new job
- license or association fees
- Canadian Adult Education Credential (CAEC) exam fee
- post-secondary application fees
- grooming costs
- cost of eyeglasses (including lenses and frames) and repairs to eyeglasses for dependent adults
- cost of tools and equipment required for training or a job
IES sites
Allowable costs for issuing the Participation Benefit – ESUB include activities related to the following support categories:
- life skills to increase employment readiness
- community supports for integration into the community and prepare for employment
- crisis or safety supports not covered by existing benefits to prepare for employment
- health supports not covered by existing benefits to prepare for employment referral
Where a benefit or resource is available elsewhere in the community, it must be accessed before the employment and participation benefits. Employment and participation benefits are not intended to top up existing maximums of benefits available through social assistance or other programs.
Verification requirements
Written verification of the person’s employment, self-employment, or other approved activity, for which ESUB or the Participation Benefit – ESUB is required, must be on file to support the decision and the amount paid.
Examples of written verification include:
- pay stub
- letter of employment from an employer, potential employer, etc.
- notification from an employment service provider
- determination made by a caseworker
- any documentation that can verify the activity of the recipient
Accepting alternatives to a letter from an employer will assist those recipients who are participating in approved activities and who have costs related to those activities.
IES sites
Caseworkers are required to monitor the allocation of the Participation Benefit – ESUB and financial supports issued by employment service providers to identify and address any issues or duplication that could potentially arise (e.g., transportation, child care).
People who are not eligible for ESUB or the Participation Benefit – ESUB
A dependent child who has not received their secondary school diploma (or equivalent) is not eligible for ESUB or the Participation Benefit – ESUB.
A dependent adult who is attending secondary school full-time is not eligible for ESUB or the Participation Benefit – ESUB unless they are starting employment within fifteen days from the date of leaving/completing school and they provide appropriate verification.
A dependent adult who is attending secondary school part-time may be eligible for ESUB or the Participation Benefit – ESUB if they meet the criteria for the benefit.
If a recipient is later determined ineligible for ODSP during the period they received ESUB or the Participation Benefit – ESUB, the amount of the benefit issued during that period may be included in the overpayment calculation.
Up-Front Child Care Benefit
Eligible members of the benefit unit include:
- recipient
- spouse included in the benefit unit
- dependent adult
- dependent child
The Up-front Child Care Benefit maybe provided to eligible members of the benefit unit when in the opinion of the Director they are required to pay in advance for child care that is reasonably necessary for them to:
- begin or change employment (employment includes full-time, part-time, casual or self employment)
- begin, change or maintain an Ontario Works employment assistance activity
- begin, change or maintain any activity that will help the person to become and stay employed
An employment activity may include:
- paid or unpaid training programs
- volunteering to prepare for employment
- job preparation activities such as job interviews
- job search
Written verification
Written verification of employment, self-employment, or an approved employment activity, for which the up-front child care benefit is required, as well as verification that the recipient must pay for child care in advance, must be on file to support the decision and the amount of the benefit issued.
Payment of the Up-Front Child Care Benefit
The amount for up-front child care that can be paid when requested by a member of the benefit unit is determined according to the maximums and criteria outlined in Directive 5.5 Child care deductions.
Payment for up-front child care costs, up to the established maximums, may be made in any twelve-month period. For example, if a recipient received an up front child care payment to start a part-time job and moves to full-time employment, thereby requiring additional child care, the recipient may be eligible for an up front payment equalling the difference between the monthly amount paid while he/she was working part-time and the monthly amount now required (up to the maximums).
In the first month of employment, a recipient may deduct the monthly child care expenses as outlined in Directive 5.5 Child care deductions, from their first month of income from earnings or a business, even if they have received the up front child care benefit. This will ensure that recipients with on-going child care costs will have sufficient income to cover their child care costs on an ongoing basis.
The Up-Front Child Care Benefit is paid in addition to ESUB or the Participation Benefit – ESUB.
Related directives
5.3 — Deductions from employment and training income
5.5 — Child care deductions
9.17 — Employment transition benefit