Ontario Families to Benefit from Additional Child Care Fee Reductions
Ontario is advancing its efforts to lower child care fees for families as part of the Canada-wide Early Learning and Child Care (CWELCC) system. Beginning in January 2025, parent fees for children under six enrolled in CWELCC programs will be capped at $22 per day. This move is expected to save Ontario families nearly $300 million in 2025.
“Our government is committed to making life more affordable for families, which is why we are further reducing child care fees and putting more money back in their pockets,” said Todd Smith, Minister of Education. “Affordable child care not only supports children’s learning and development but also allows parents to join the workforce with confidence.”
Since Ontario signed an agreement with the federal government in 2022 under the national program, the province has already reduced child care fees by an average of 50% from 2020 levels. Ontario has also introduced the Child Care Workforce Strategy and initiated a plan to create thousands of new licensed child care spaces across the province.
Ontario continues to urge the federal government to increase funding to ensure the sustainability of this national program for families throughout the province. This advocacy reflects Ontario’s unique agreement with the federal government, which includes a mid-agreement program review. The new $22 per day fee cap will benefit families by reducing fees for 44% of spaces in the CWELCC system, particularly aiding those with the youngest children in less affordable communities. This change is projected to result in nearly $300 million in additional savings for these families in 2025.
Informed by extensive consultations with child care providers, service system managers, and school boards, the Ontario government will introduce a new, cost-based funding model for CWELCC program operators. Effective January 2025, this approach will prioritize simplicity, consistency across the province, and ensure that operators are funded based on the true costs of running child care programs.
“I am proud to introduce this new funding formula, which has been crafted with significant input from child care operators,” said Minister Smith. “This formula will provide the stability and predictability needed for operators to expand and create more affordable child care spaces for Ontario families.”
Ontario remains committed to collaborating with the federal government, municipalities, and child care providers to build a sustainable early years and child care system that serves the needs of children, families, and professionals across the province.
