Ten-dollar-a-day childcare is on its way for Ontario.
The province has signed off on an agreement worth $13.2 billion dollars that will result in lower fees beginning this year, reaching the federal benchmark by September 2025.
Prime Minister Justin Trudeau says fees will be reduced by 25 per cent, with a further 25 per cent reduction taking place in December.
Ontario is the last jurisdiction to sign the national deal.
Unlike other deals, the province was able to negotiate an extra year of funding and protection against any funding shortfalls.
Education Minister Stephen Lecce says it recognizes the unique challenges in Ontario and the fact that the province has the highest childcare costs in the country.
“We have secured a deal for Ontario families that will significantly reduce child care costs for working moms and dads, and that starts today”, says Lecce. “We were able to deliver a deal for Ontario families that includes billions in additional funding and a longer agreement that respects parents and provides financial support for families.”
Other components include;
- A federal investment of $13.2 billion over six years with the province having secured more certainty around out-year funding. The deal includes an additional year of funding of at least $2.9 billion.
- The flexibility to allocate federal funding in a way that will allow the province to deliver an average of $10 a day child care, including by spending the initial $10.2 billion over four years instead of five.
- Enhanced protection against funding shortfalls through a mandated financial review process in year three – the first of its kind in any provincial child care deal – to reconcile the actual costs of the new national child care plan with funding.
- Reduction of child care fees through four steps of reduction to an average of $10 a day per child five years old and younger by September 2025.
- Parent rebates, retroactive to April 1, will begin in May.
- Protection of all for-profit and non-profit child care spaces, helping to support predominantly female entrepreneurs across the province who provide high-quality child care services.
- Creation of approximately 86,000 new, high-quality child care spaces for children five years old and younger.
- Hiring new early childhood educators and support improved compensation for all Registered Early Childhood Educators (RECEs) working in licensed child care.
- Maintain Ontario’s child care tax credit program that supports 300,000 families with expenses in licensed and unlicensed child care.
- Work with municipalities to enroll 5,000 licensed child care centres and home child care agencies into the program between now and September 1.
Refunds will be issued retroactive to April 1, receiving the first cheques in May.
