The future of affordable child care in Ontario hangs in the balance as the province warns that without a long-term federal funding commitment, the program may not be sustainable. Ontario secured a one-year extension to its child-care agreement with the federal government at the end of 2025, which was set to expire on March 31. The program currently lowers child-care fees to $19 a day in Ontario, a step toward the goal of $10-a-day care.
However, no new money has been allocated for Ontario child care in Prime Minister Mark Carney's spring budget update, and the capital fund that pays for expanding child-care spaces is set to expire next year. While most provinces have long-term child-care deals, Ontario and Alberta do not. Under the extension, federal funding is only guaranteed until the end of next March, as the two sides have been unable to reach a longer agreement.
Province not meeting child-care targets: Report
The program already has systemic issues, according to a report by Ontario's Auditor General Shelley Spence. Released last October, the report found that the province was not on track to meet its child-care targets, with fewer enrolments from lower-income families and insufficient tracking of available spaces. By December 2024, only 36,000 spaces had been created over five years, short of the government's target of 48,000. Compared to 2019, child-care enrolment decreased by 31% among lower-income families receiving subsidies.
The program reduced child-care costs and increased demand for spaces, making it harder for families to find a spot. The auditor general also found that, as of December 2023, 27% of program spaces had no children enrolled because they were vacant or inoperational. A website designed to help families find child-care spaces will not be ready until 2029.
Fees would have to rise: AG
Reaching provincial targets would mean increasing the number of children who receive full subsidies to 57,000 from 41,000 in 2022-23. But with fewer families qualifying, parents may have to pay more for the program to meet its commitments. Even with a new deal, there would be an estimated $1.95-billion shortfall for the program in 2026-27. Without additional federal and/or provincial funding, parent fees would need to increase, Spence wrote.
Ontario more expensive: Minister
Education Minister Paul Calandra addressed the findings, explaining that it costs more to run child care in Ontario than in jurisdictions such as Manitoba and Saskatchewan because of higher rents and wages in cities like Toronto. He said the ministry would speed up work on the website. Ontario says it needs a long-term deal in place by September so providers can plan ahead.
