Ontario families are set to enjoy even lower child-care fees as the province introduces a new funding formula aimed at supporting child-care operators. Starting January 1, 2025, average daily fees will drop from $23 to $19, with a cap of $22. This is another step towards the government’s goal of reaching an average of $10 a day by March 2026.
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A Lifeline for Child-Care Operators
Child-care operators have been struggling to keep their doors open under the current funding model. To address this, the province is introducing a new funding formula that promises to cover the true cost of care. Education Minister Todd Smith believes this will prevent closures and create more child-care spaces.
How Will the New Funding Formula Work?
The new funding formula considers factors such as the number of spaces, age groups, and location of the child-care facility. Operators will receive a base funding amount, with additional support for those with higher costs, such as those offering specialized diets or located in high-rent areas.
The formula also includes a growth top-up to encourage the creation of new child-care spaces. However, there’s no mention of wage increases for early childhood educators, a key concern for many in the sector.
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Challenges and Opportunities
While the new funding formula aims to stabilize the child-care sector, challenges remain. The province is facing a shortage of child-care spaces despite creating 51,000 new ones, with only half of those within the $10-a-day program. Additionally, the government is in talks with the federal government to lift a cap on for-profit child-care spaces, which they believe would accelerate child-care expansion.
The road to affordable and accessible child care is still under construction, but Ontario’s latest initiatives offer hope for families and child-care providers alike.
Will these changes be enough to address the child-care crisis in Ontario? Let us know your thoughts in the comments.