Question Period Note: ONTARIO’S $10-A-DAY CHILD CARE PLAN COULD LEAVE 227,000 CHILDREN WITHOUT SPACES WARNS THE FINANCIAL ACCOUNTABILITY OFFICE OF ONTARIO REPORT ON THE ONTARIO MINISTRY OF EDUCATION’S SPENDING PLAN

Will the Canada-Ontario Canada-wide Early Learning and Child Care Agreement provide enough funding to support the increased demand for the creation of child care spaces as a result of the Ontario’s $10-a-day child care plan?

• The Canada-Ontario Canada-wide Early Learning and Child Care Agreement provides the province with $10.2 billion over five years.

• Ontario has committed to work towards achieving the Canada-wide targets outlined in its agreement, ensuring that families in Ontario have access to high-quality, affordable, and inclusive early learning and child care.

• Ontario’s Canada-wide agreement will reduce licensed child care fees by 50% on average by December 2022, deliver average $10-a-day licensed child care for Ontario families and create 86,000 new licensed child care spaces in the province by March 2026.

Key findings of the Ontario’s Financial Accountability Officer’s Report

On November 14, 2022s, the Ontario’s Financial Accountability Officer’s (FAO) Report identified 4 issues related to child care in the province:
1. How does the province plan to create 71,000 net new licensed child care spaces for children under age six?
2. How many child care providers will enrol in the 10-a-day child care program?
3. Is there enough funding available to support $10-a-day child care for all who want it?
4. Will the federal government continue to fully fund the program?

As reported by Global News on November 14, 2022, a report by Ontario’s Financial Accountability Officer’s (FAO) estimated that the approximate demand for child care at $10-a-day would be 602,257 children. With only 375,111 $10-a-day licensed spaces planned, the FAO estimates that the families of 227,000 children under the age of six could be left wanting but unable to access a space by 2026.

The FAO’s estimated demand is based on “25% of (Ontario’s) projected under six population” of nearly 920,000 in 2026. This number cannot be substantiated by ESDC. Statistic Canada’s latest projection across a number of medium growth scenarios is that Ontario’s 0-5 year old population would range from approximately 892,000 to 903,000 by 2026.

The FAO Report also estimated that the $10-a-day child care program has committed funding shortfall of $1.2 billion in 2026-2027 and $4.2 billion in 2027-2028. According to the FAO, provincial spending on child care programs will increase significantly, from “2.2 billion in 2021-2022 to $6.5 billion in 2027-2028, representing an average annual growth rate of 19.9 per cent.” ESDC officials are reviewing the FAO report.

Canada-wide Early Learning and Child Care
The Government of Canada made a transformative investment of over $27 billion over five years, as part of Budget 2021, to build a Canada-wide early learning and child care system with the provinces and territories. Combined with other investments, including in Indigenous Early Learning and Child Care, up to $30 billion over five years will be provided in support of early learning and child care. Adding previous investments announced since 2015, this means that as of 2025-2026, a minimum of $9.2 billion will be provided every year – permanently – for early learning and child care and Indigenous early learning and child care.

The goal is to bring fees for regulated child care down to $10-a-day, on average, by March 2026. By the end of 2022, the Government of Canada is aiming to reduce average fees for regulated early learning and child care by 50 per cent to make it more affordable for families. These targets apply everywhere outside of Quebec, where prices are already affordable through its well-established system.

The Government of Canada is aiming to create approximately 250,000 new child care spaces through Canada-wide agreements with provinces and territories. These new spaces will be predominantly among licensed not-for-profit, public, and family-based child care providers.

The Canada-Ontario Canada-wide Early Learning and Child Care Agreement provides the province with $10.2 billion between 2021-2022 to 2025-2026, with an additional $2.9 billion in 2026-2027. Under the Agreement, Ontario will reduce child care fees by 50% on average by December 2022, deliver average $10-a-day child care for Ontario families by March 31, 2026, and create 86,000 new licensed early learning and child care spaces in the province by December 31, 2026.

Ontario has reduced licensed child care fees for children under six years old on average by 25 per cent as of April 1, 2022, saving Ontario families an average of about $2,200 per child. By the end of 2022, fees will be further lowered, and families will see a total reduction of 50 per cent on average, saving them an average of about $6,000 per child per year. This agreement will deliver on average $10-a-day child care for Ontario families by the end of March 2026.

• The Canada-wide agreement outlines federal and provincial investments to support the implementation of a Canada-wide early learning and child care system.

• Investment decisions made by Ontario are a matter of provincial jurisdiction.