Canada Introduces A National $10 Daycare Program

Canadians with children are well aware of how expensive childcare services can be. In many cases, parents have chosen to stay home rather than maintain employment because their income is simply not enough to justify the cost of childcare. Those with no other choice but to seek out child care services, find themselves on waiting lists for openings; some as long as two years.

In response to the skyrocketing cost of child care, the Canadian government has taken steps to alleviate the financial burden on parents.

Let’s take a look at the federal government’s $10-a-day childcare program and how it may reduce the costs of childcare for families across the country.

What Is The $10-A-Day Childcare Program? 

Ottawa recently made a deal with all provinces and territories, to provide financially accessible child care through a newly-introduced $10-a-day program under the Canadian Child Care Federation and the Enabling Accessibility Fund. 

The plan also includes Indigenous Early Learning and Child Care, which is designed to support culturally-based emotional, intellectual, language, spiritual, and physical development in households, nursery schools, and daycares. 

The federal government’s universal child care plan will cost $30 billion and is expected to create 146,000 new spots across the country by 2026. A minimum of $9.2 billion will be invested in the program every year.

Not only will this program open up more affordable spaces for childcare, but it will also generate thousands of jobs for those who work within this sector, including early-childhood educators and daycare workers. 

When Will The $10-A-Day Daycare Program Start In Canada?

The government of Canada has successfully reached an agreement with all 13 provinces and territories. 

Currently, Quebec, Prince Edward Island, Manitoba, Saskatchewan, Newfoundland and Labrador, Nunavut and Yukon have all reduced their regulated child care costs to $10 or less on average.

Ontario, Nova Scotia, Alberta, British Columbia, New Brunswick, and the Northwest Territories have reduced their regulated child care costs by 50% or more on average.

It may be a while before Canadian parents will see $10-a-day childcare fees across the provinces and territories. For instance, the federal government offered Ontario $10.2 billion to lower the average cost of child care by 50% by the end of 2022. The province will eventually see an average of $10 a day by 2026.

Each province has a set schedule when they will see childcare costs reduced to $10 a day, as illustrated in the following chart:

$10-A-Day Daycare Program Start Schedule

*Québec’s provincial childcare program has served as a template for the National government’s implementation of its accessible child care legislation. As a result, Québc reached a deal with Ottawa in 2021 that allows the province to opt out of the national program. That said, Québec will still receive a share of the funding of $6 billion over five years. Québec already has an affordable childcare program, with families paying a mere $8.50 per day per child for public daycare, which is the lowest fee by far in Canada.

How Much Can Parents Expect To Save On Child Care In 2024? 

The following table compares how much parents can expect to save on child care fees in 2024 compared to 2019. 

Source: Canada.ca

*Quebec already had low day care fees ($10 or less) prior to the $10 day care program.

Benefits Of Cheaper Daycare In Canada

The new federal child care program will not only bring the cost of childcare down, but provide numerous advantages including: 

Early Learning 

The benefits of early learning have been well-documented. High-quality early childhood education programs benefit children and give them a chance to get a great head start in their educational careers, regardless of their parents’ economic status. 

Early learning can also have a positive effect on parents and the overall economy. According to a study by the Toronto Dominion Bank on Early Childhood Education, research indicated that every dollar invested brings a return between $1.50 to nearly $3. And for more disadvantaged kids, the benefit ratio is in the double digits. 

Higher Women’s Labour Force Participation 

Some jobs may not provide an income that’s high enough to support paying sky-high childcare costs. As such, many parents choose to stay home to care for their children, which can place a significant financial burden on the household. 

With cheaper childcare options, mothers have more opportunities to stay or re-enter the workforce. Not only does an increase in women’s labour force participation provide short-term benefits, but it also plays a positive role in shaping Canada’s future workforce down the road. 

Find out if you qualify for maternity leave.

Higher GDP 

Investment in early childhood education can bring sizable returns for the economy compared to other industries. According to the TD study, the gross domestic product (GDP) for child care outside the home is one of the highest of all industries at 0.90. 

But at just 0.25% of the GDP, Canada ranks last among comparable European and  English-speaking nations. Total public spending in this industry is lagging here in Canada. This supports the notion that more government investment in the sector could be highly beneficial in helping create a better system. 

More Promising Economic Future 

Investing in affordable early education can help to address key economic challenges that Canada currently faces. Not only can it benefit parents and increase their participation in the labour force, but it can also foster skills development among the younger generation and increase the odds of future educational and professional success. 

Kids will be more likely to finish high school, get a post-secondary education, increase employment prospects, and minimize the duration of unemployment. Investing in skills development can also help to better handle potential labour shortages and improve innovation and productivity. Ultimately, investment in early education and making it more affordable for Canadian parents leads to a more robust economy.

Additional Reading

How To Apply For The Child Disability Benefit (CDB)

Best Children & Youth Savings Accounts In Canada

Canada Child Benefit (CCB) Payment Dates 2024

Final Thoughts

Childcare costs can put a significant debt on household budgets for Canadian families. The $10-a-day childcare program will help alleviate the financial burden for parents, which is expected to not only have a positive impact on individual families but on Canadian society as a whole.

National $10 Daycare Program FAQs