In Budget 2021, the federal government made an historic investment of $30 billion over five years to build a Canada-wide early learning and child care system. In less than a year, it reached agreements with all 13 provinces and territories. By the end of 2022, child care fees will be reduced by an average of 50 per cent, and by 2025-26, child care fees will average $10-a-day for all regulated child care spaces, from coast-to-coast-to-coast. April 7, 2022 Child care is not just a social policy—it is an economic policy, too. Affordable, high-quality child care will grow our economy, allow more women to enter the workforce, and help give every Canadian child the best start in life. In Budget 2021, the federal government made an historic investment of $30 billion over five years to build a Canada-wide early learning and child care system. In less than a year, it reached agreements with all 13 provinces and territories. By the end of 2022, child care fees will be reduced by an average of 50 per cent, and by 2025-26, child care fees will average $10-a-day for all regulated child care spaces, from coast-to-coast-to-coast.
In response to requests from provinces and territories, and to support the implementation of the Canada-wide early learning and child care system, Budget 2022 proposes to provide $625 million over four years, beginning in 2023-24, to Employment and Social Development Canada for an Early Learning and Child Care Infrastructure Fund.
This funding will enable provinces and territories to make additional child care investments, including the building of new facilities. As noted in Budget 2021, Quebec has been a pioneer in early learning and child care in Canada, and this new funding will be part of an asymmetrical agreement with the province of Quebec that will allow for Quebec to further enhance its child care system.
1 National Canada-wide early learning and childhood allocations are calculated based on projected 0-12 child population and include base funding of $2 million per province/territory per year.
2 Employment and Social Development Canada estimates and are illustrative only. Savings estimates are relative to 2019 levels unless updated data is provided by provinces and territories. Estimates are based on out-of-pocket parent fees and do not include amounts that would be recovered through provincial/territorial tax credits or the federal child care expense deduction at tax time, or changes to provincial/territorial or federal benefits as a result of lower child care expenses. Actual savings for families will vary based on factors such as actual fees paid prior to reductions.
3 Employment and Social Development Canada estimates. Range of estimated early childhood educator jobs created is based on the national average range of early childhood educators expected to be required per new child care space. Provincial and territorial estimates may differ due to regulatory variation.
4 B.C. committed to creating 30,000 new spaces within five years, and 40,000 new spaces within seven years.
5 The Government of Canada has entered into an asymmetrical agreement with the province of Quebec that will allow for further improvements to its early learning and child care system, where parents with a subsidized, reduced contribution space already pay a single fee of less than $10/day.
6 Based on the province of Ontario’s current modelling for an average $10/day out-of-pocket parent fee.
7 Ontario committed to create 86,000 spaces from 2019 levels by end of 2026, which is approximately 71,000 new spaces from current levels.