Ontario Reaches $10 A Day Childcare Plan With Federal Government

Ontario becomes final province to sign onto national child care deal.

The province and the federal government have reached an agreement on $10 a day childcare. 

Prime Minister Justin Trudeau and Premier Doug Ford made the announcement in Brampton today, saying the childcare fees in the province will be reduced to an average of $10 a day by September 2025. 

Trudeau says the deal will save Ontario families about $6,000 a year. 

"Accessible high quality child care is key to building a stronger future, a more resilient economy and a growing middle class. I think of all the families and parents I have met across the country, who told me how badly they needed more accessible, more affordable child care." 

In the coming weeks, licensed child care centres serving kids aged five and younger will reduce fees by up to 25 percent, retroactive to April 1st, 2022. 

Parents can expect to start receiving rebates in May. 

In December, fees will be reduced by another 25 percent. 

Families will see further reductions in September 2024, with the goal of an average of $10 a day to be reached the following September. 

The agreement also supports the creation of 86,000 more licensed child care spaces to address increasing demand. 

As well, the deal includes a federal investment of $13.2 billion over six years.

Other highlights include the following: 

• The flexibility to allocate federal funding in a way that will allow the province to deliver an average of $10 a day child care, including by spending the initial $10.2 billion over four years instead of five.
• Enhanced protection against funding shortfalls through a mandated financial review process in year three – the first of its kind in any provincial child care deal – to reconcile the actual costs of the new national child care plan with funding.
• Protection of all for-profit and non-profit child care spaces, helping to support predominantly female entrepreneurs across the province who provide high-quality child care services.
• Creation of approximately 86,000 new, high-quality child care spaces for children five years old and younger.
• Hiring new early childhood educators and support improved compensation for all Registered Early Childhood Educators (RECEs) working in licensed child care.
• Maintain Ontario’s child care tax credit program that supports 300,000 families with expenses in licensed and unlicensed child care.
• Work with municipalities to enrol 5,000 licensed child care centres and home child care agencies into the program between now and September 1.