Question Period Note: ADJUSTMENTS TO ALBERTA’S CHILD CARE FEE SUBSIDY PROGRAM

Was the federal government advised of any reductions to Alberta’s existing fee subsidy program while negotiating funding commitments for the Canada-Alberta Canada-wide Early Learning and Childcare (ELCC) Agreement?

• The Canada-Alberta Canada-wide Early Learning and Child Care Agreement, announced on November 15, will see almost $3.8 billion over the next five years provided to Alberta.
• As part of the agreement, parents will see fees reduced by half, on average, by early 2022. By the end of March 2026, families will be paying an average of $10 per day. This will be achieved through a new operating grant as well as adjustments to Alberta’s current subsidy program.
• Contrary to some recent media reports, low-income families in Alberta will not see fees go up in January.
• The Government of Canada is committed to a Canada-wide Early Learning and Child Care System that will ensure all families have access to high-quality, affordable, flexible and inclusive child care.

An early learning and child care stakeholder operating in Alberta has recently questioned whether the Government of Alberta is using federal funding to replace its existing, provincially funded, fee subsidy system, and whether the federal government was advised of these adjustments during the negotiation of funding commitments for the recently announced Canada-Alberta Canada-wide ELCC Agreement.

As part of the Agreement, Alberta is introducing a new operating grant, which requires adjustments to its existing subsidy program. Starting in 2022, child care fees will be reduced in two ways: by providing new operating grants to licensed providers to lower child care fees for all families, and – because the operating grant will reduce costs significantly – by increasing income thresholds in the Child Care Subsidy eligibility criteria and making the subsidy available to more families. For some families, the amount of their subsidy may be lower, but combined with the operating grant, low-income families in Alberta will not see their fees go up in January. We understand that Alberta officials will be issuing further information to operators to clarify this.

In the Agreement Canada and Alberta confirmed that federal funds provided will not displace existing provincial spending in place on or before March 31, 2021.

The 2020 Fall Economic Statement announced key early investments to lay the groundwork for a Canada-wide child care system, in partnership with provinces, territories and Indigenous peoples. This includes investments to establish a federal secretariat on early learning and child care; supporting the existing federal Indigenous Early Learning and Child Care Secretariat; making the early learning and child care funding announced in Budget 2017 permanent at 2027-2028 levels; providing $420 million in 2021-2022 for the provinces and territories to support the attraction and retention of early childhood educators; and an additional $75 million in 2021-2022 to improve the quality and accessibility of Indigenous child care programs.

Building on investments announced in the 2020 Fall Economic Statement, 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 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 Government of Canada is making a transformative investment to build a Canada-wide early learning and child care system in partnership with provincial, territorial and Indigenous partners. The goal is to bring fees for regulated child care down to $10 per day on average within the next five years. By the end of 2022, the Government 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 would apply everywhere outside of Quebec, where prices are already affordable through its well-established system.

To make immediate progress for children with disabilities and children needing enhanced or individual supports, the Government is providing $29.2 million over two years, starting in 2021–22, to Employment and Social Development Canada through the Enabling Accessibility Fund to support child care centres as they improve their physical accessibility.

As of early December, Canada-Wide Early Learning and Child Care Agreements were reached with British Columbia, Nova Scotia, Yukon, Prince Edward Island, Newfoundland and Labrador, Québec, Manitoba, Saskatchewan, and Alberta.

• On November 15, 2021, the governments of Canada and Alberta announced the 2021-2022 to 2025-2026 Canada-Alberta Canada-Wide Early Learning and Child Care Agreement (“the Agreement”). To support the goal of ensuring access to high-quality, affordable, flexible, and inclusive early learning and child care, the Government of Canada will contribute close to $3.8 billion for child care in Alberta over five years.
• As part of the Agreement, parents will see fees reduced by half, on average, by early 2022, with families most in need receiving additional subsidy. By the end of March 2026, families will be paying an average of $10 per day per child.
• To achieve this goal Alberta is introducing a new operating grant, which requires adjustments to its existing subsidy program. Starting in 2022, child care fees will be reduced in two ways: by providing new operating grants to licensed providers to lower child care fees for all families, and – because the operating grant will reduce costs significantly – by increasing income thresholds in the Child Care Subsidy eligibility criteria and making the subsidy available to more families. For some families, the amount of their subsidy may be lower, but combined with the operating grant, low-income families in Alberta will not see their fees go up in January.
• In the Agreement Canada and Alberta confirmed that federal funds will not displace existing provincial spending in place on or before March 31, 2021.
• The Canada-Alberta Implementation Committee will monitor progress on child care commitments in consultation with stakeholders.