Ontario signed a $ 10.2 billion childcare deal with the federal government on Sunday that will cut childcare fees in the province in half by the end of the year. Prime Minister Justin Trinto and Prime Minister Doug Ford will announce the agreement Monday in the greater Toronto area, according to sources in both governments who are aware of the negotiations. They all spoke to the Canadian press on condition that they were not named because of the sensitive nature of the talks. The Ontario agreement is the latest required to fulfill Prime Minister Justin Trinto’s commitment to reduce childcare fees to an average of $ 10 a day in each province and region by the end of 2026. The 2021 federal budget provided $ 30 billion over five years to create a national childcare program that had been promised but never implemented. Ontario was holding back for more money, and although they did not receive it, provincial sources say they have provided more flexibility in when funds are spent, which will allow them to achieve their goal of reducing fees to an average of $ 10 a day. They also secured a third year review mechanism that allows them to provide an up-to-date costing model and ask for more money to take into account any shortcomings. The five-year childcare program was to include $ 1 billion for Ontario in its first year, which is 2021-22. As this fiscal year ends in four days, the federal government allows them more flexibility to push most of this spending into the coming years. As part of the deal, Ontario will cut wages by an average of 50 percent by the end of December, create 86,000 new childcare facilities by the end of five years, and set new wage thresholds for childcare workers. $ 18 per hour for staff and $ 20 per hour for supervisors. These wages will increase by $ 1 an hour each year until the floor reaches $ 25 an hour. The premises must be under licensed care and priority is given to public or non-profit sites, but the agreement does not leave private, non-profit centers completely out. At least one-fifth of Ontario’s childcare facilities are run by private, for-profit companies and are charged with some of the highest fees in the province. The Canadian Center for Policy Alternatives also reported that in 2019, Toronto had the highest average childcare rates for infants and toddlers, at $ 1,774 and $ 1,457 per month, respectively. Preschool tuition was higher in Iqaluit at $ 1,213, followed by Oakville, Ont. At $ 1,210 and Toronto at $ 1,207. In Quebec, which set up a universal childcare program in 1997, parents paid an average of $ 179 a month for all age groups. The federal government estimated last year that lowering the average fee to $ 10 a day in Ontario would save an average of $ 7,300 per child. Ontario is the last province or region to be included in the national plan. Seven counties and the Yukon boarded in July and August, ahead of federal elections. Alberta joined in November, New Brunswick and the Northwest Territories in December and Nunavut in late January. When the Nunavut deal was finalized, Ford said an agreement with his government was “very, very close,” but it took two more months to complete. One of Ontario’s biggest demands was the assurance that federal funding would not disappear after the initial five-year term, leaving the provinces on the hook for very expensive planning. There was already such a promise in the 2021 budget, which said that funding for this program after the initial five years would be $ 9 billion a year. Provincial sources said they have secured a sixth year of funding that gives Ontario “calm” that the program will not end after the deal expires. Ontario also needed $ 3.6 billion in credit or additional funding for the $ 3.6 billion all-day kindergarten program. It is one of the few counties to have it, but Family Minister Karina Gould, who negotiated the federal government deal, was adamant that the kindergarten was out of the question. Ottawa provided each province with a per capita share of the funding provided for childcare agreements based on the child population in each province. That amounts to $ 10.2 billion for Ontario. The deals share the target of fees to average $ 10 a day by the end of the 2025-26 financial year, with an initial fee reduction of 50 percent this year. But they also reflect the reality of existing childcare programs in individual provinces, including Quebec. This county already has $ 8.50 per day in regulated childcare facilities, so its agreement was largely to expand and help fund this project, including 22,000 more venues. Overall, the agreements will add more than 250,000 subsidized, licensed childcare facilities across Canada over the next four years. The federal official also said Gould had heard from more than one county that it was difficult for them to pay for the extensions they needed so that child care facilities could accommodate extra children. Discussions on funding childcare infrastructure may be forthcoming, but they are not part of this agreement, they said. Susan Predis, a professor of sociology at the University of Manitoba and a member of the federal team of experts on early learning and childcare, said making childcare more accessible is a huge issue for parents. He said that for some parents, it will open the possibility for them to be able to afford the care of their children. But cost is only part of the puzzle of ensuring accessible, safe and quality childcare, Prentice said, and implementation will be key. “An agreement alone is only the first step.” This Canadian Press report was first published on March 27, 2022.
