The province also announced a new funding model for child-care centres, but did not include wage increases or a new pay grid for workers
The Ontario government is capping daycare fees for young children to $22 a day starting next year for operators enrolled in the government-funded program, as it announced a new funding model for child-care centres that is intended to provide more stability and predictability to help reduce lengthy wait-lists.
The new system moves from a revenue replacement model to a cost-based funding approach, where all operators receive benchmark funding based on core metrics, such as the number of children and location, with a top-up for certain areas that are more expensive. There is also a growth top-up for centres looking to expand in certain communities.
“When kids are in child care, they’re able to learn and grow, and their parents are able to enter the work force with peace of mind,” he said in a statement. Donna Spreitzer, executive director of advocacy group Toronto Community for Better Child Care, said she too welcomed the new funding formula, including additional money for certain regions, but expressed concerns that it treats for-profit and non-profit operators in the same way. She said any surpluses generated by the not-for-profit providers go directly back to the centres and staffing – but not necessarily in for-profit centres.
The province has so far created less than a third of the 86,000, $10-a-day spaces it committed to by 2026. Meanwhile, wait-lists have ballooned since the introduction of the program. The government has so far created 51,000 spaces for children from the ages of 0 to 5, but only 25,500 of those are part of the $10-a-day program.
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