Ontario and the federal government have decided to extend the affordable child-care program in the province for another four years, but there’s no commitment to further reduce what parents currently pay.
The province is one of only two, alongside Alberta, that had not secured long-term agreements beyond the initial five years of the program. The new funding will provide some assurance for both operators and parents until at least 2031.
However, it might not achieve its main goal – reducing parent fees to an average of $10 a day.
While about half of the provinces have managed to offer fees at that level, Ontario’s average stands at $19 a day, capped at $22.
Under this new four-year deal with the federal government, Ontario has agreed to keep fees unchanged until June 30, 2027.
The future beyond that point remains uncertain.
This agreement offers stability for both parents and child-care providers, said federal Jobs and Families Minister Patty Hajdu.
“Obviously this has been a challenging piece of work, but it’s been an amazing piece of work,” she said in an interview.
“There are still parents that are saving in Ontario about $9,000 per child, even with the rate being an average of $19.”
While about half of the provinces are offering average fees at $10 a day, Ontario’s are an average of $19 a day, capped at $22. (Nathan Denette/The Canadian Press)
Waitlists continue to grow: minister
The four-year agreement includes $12 billion from the federal government. Additionally, Ontario will also receive its portion of another $5.4 billion for the national program announced earlier this year by Hajdu.
This new funding helps address Ontario’s budget gap in the short term, according to Education Minister Paul Calandra.
“[Minister Hajdu] understood that there was a massive shortfall in her program and came back with more money; this allows us to at least get probably to the end of [2027] with current fees,” he said in an interview.
“If they want lower rates than this, they’re going to need to provide significantly more dollars. But this gives good stability for parents and operators. So I’m very happy with what she’s been able to accomplish.”
Hajdu mentioned she’s heard from many parents regarding child-care availability. In some parts of Ontario, waitlists have skyrocketed by hundreds of percent since before demand surged due to the national program.
The province was supposed to create 86,000 affordable spaces by now as part of its agreement with Ottawa but has so far fallen short with just under 60,000 available spots.
Calandra stated that they are still working toward that target and expect many new spaces will open up next year since most new schools being built include childcare facilities attached.
Ontario’s financial accountability officer estimates that lower fees could push space demand up closer to 220,000 spots.
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