The Canadian federal government has secured extensions to the Canada-wide early learning and child care bilateral agreements with 11 out of 13 provinces and territories,ensuring the continuation of the $10-a-day child care plan until at least 2031 for participating regions. This landmark move provides stability for families and child care providers in British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, Newfoundland and Labrador, Yukon, northwest Territories, Nunavut, and Quebec. The initial commitment to build a worldwide, high-quality national child care system was made in 2021, with all provinces and territories reaching agreements with the federal government by March 2022.The extension of these agreements marks a crucial step in solidifying the program’s future and expanding its benefits across the country.

The Canada-wide early learning and child care system, initially envisioned in 2021, aimed to provide affordable and accessible child care across the nation. By March 2022, all provinces and territories had reached agreements with the federal government, setting the stage for a transformative change in early childhood education.The recent extension of these agreements until 2031 signifies a long-term commitment to supporting families and ensuring that the benefits of affordable child care continue to be realized for years to come.

Provinces Holdout, Jeopardizing Access

Despite the widespread support, Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have, as of yet, refused to sign an extension. This decision jeopardizes affordable child care for families in those provinces and raises concerns among early learning and child care workers. advocates are actively working to pressure Premiers Smith and Moe to reconsider and join the extended agreement.

The refusal of Alberta and Saskatchewan to sign the extension raises significant concerns about equitable access to affordable child care across Canada. The absence of these provinces from the extended agreement could create disparities in child care availability and affordability,potentially disadvantaging families and hindering economic growth in these regions. The pressure from advocates highlights the importance of ensuring that all Canadian families have access to the benefits of the $10-a-day child care plan.

economic Stability and Benefits

The extension agreements provide much-needed stability amidst political and economic uncertainty. concerns about a potential recession and the return of inflation, possibly stemming from international trade tensions, loom large. Moreover, the future of the $10-a-day plan, initially set to expire in 2026, was uncertain given the Conservative Party of Canada’s refusal to commit to its continuation.

The economic benefits of the $10-a-day plan are already evident. Families across participating provinces are experiencing reduced fees and benefiting from new public funding for child care programs. In many regions, $10-a-day child care is a reality, while others have seen parent fees cut by at least half, with a trajectory to reach the $10-a-day target by March 2026. This has provided significant financial relief during a period of rising costs for other essential goods and services.

the impact extends beyond individual families. The reduction in child care fees has helped to keep the overall inflation rate lower than it would have or else been. Moreover, more women are now participating in the workforce. Since 2019, an additional 110,000 women aged 25-54 have joined the labor force, and the share of women working full-time has increased by 2 percentage points.

Early learning and child care workers in many provinces have also begun to see improvements in their working conditions. The $10-a-day plan is estimated to have contributed $32 billion to Canada’s GDP in 2024 alone, highlighting its significant economic impact.

The economic advantages of the $10-a-day child care plan extend far beyond individual households. By reducing child care costs, families have more disposable income to spend on other goods and services, stimulating local economies. The increased participation of women in the workforce further boosts economic productivity and contributes to overall economic growth. The estimated $32 billion contribution to Canada’s GDP in 2024 underscores the significant economic impact of this transformative initiative.

Strengthening and Expanding the Program

With longer-term funding agreements secured, the focus now shifts to negotiating new action plans to strengthen and expand the $10-a-day Child Care Plan over the next five years. A key priority is addressing the longstanding shortage of early learning and child care workers.

workers in the sector are frequently enough undervalued, facing low wages, limited benefits, and poor working conditions, leading to recruitment and retention challenges. While some provinces have made progress, others, like Alberta and Ontario, have not yet committed to a wage grid that would raise the floor for all workers.Sector-wide pension plans and extended health and dental benefits are also lacking in many regions. To date, only Nova Scotia has utilized federal funding to provide a defined benefit pension and extended health and dental benefits to its early learning and child care workers.

Demand for child care continues to rise as more families can afford it under the $10-a-day plan. A more concerted effort is needed to increase the number of public and non-profit child care spaces to eliminate waitlists. Incentivizing provinces and territories to utilize existing public facilities, such as municipal buildings, schools, and hospitals, to create more $10-a-day child care spaces is crucial.

Concerns remain about the allocation of federal funding. The federal government is facing pressure to prevent provinces from using funds to expand the for-profit child care sector, as is currently the case in Prince Edward Island, New Brunswick, Ontario, and alberta. Critics argue that expanding for-profit child care undermines the goals of the $10-a-day plan, as these operators prioritize profits over workers’ wages and working conditions. In Ontario, some for-profit operators have even campaigned against the $10-a-day plan.

The federal government is urged to ensure that public funding expands access to affordable, high-quality programming in non-profit and public centers, rather than benefiting for-profit operators.

Addressing the shortage of early learning and child care workers is paramount to the long-term success of the $10-a-day child care plan. Improving wages, benefits, and working conditions is essential to attracting and retaining qualified professionals in this critical sector.the disparities in provincial approaches to worker compensation highlight the need for a national strategy to ensure that all early learning and child care workers are valued and supported. The debate over for-profit versus non-profit child care underscores the importance of prioritizing quality and accessibility over profit motives.

Looking Ahead

The extension of the canada-wide early learning and child care agreements represents a significant step forward in making affordable child care a reality for families across the country.While challenges remain, notably in addressing workforce shortages and ensuring equitable access, the commitment to strengthening and expanding the program offers hope for a brighter future for children and families in Canada.