A Toronto daycare has announced its withdrawal from the national $10-a-day program, citing funding uncertainty and mounting debt. The decision has left many parents in a dilemma, as they face a steep hike in fees or the prospect of finding alternative care.
How the $10-a-day program works
The $10-a-day program is part of the federal government’s $30-billion plan to create a Canada-wide system of affordable, high-quality, and inclusive child care. The program aims to reduce fees for parents to $10 a day by 2026, and to create 250,000 new spaces for children under six.
The program is implemented through bilateral agreements with provinces and territories, which are responsible for setting their own eligibility criteria, fee structures, and funding mechanisms. The federal government provides funding to provinces and territories based on their population of children under six, and expects them to match the funding at a 50-50 ratio.
Why Ola Daycare is opting out
Ola Daycare is one of the child-care centres in Ontario that joined the $10-a-day program in November 2023, after the province signed an agreement with the federal government. The program offered a 50% reduction in fees for families, from about $1,400 to $700 a month for preschoolers.
However, the daycare said the funding model has been problematic, as it has not received the promised reimbursements from the province in a timely manner. The daycare said it has accumulated over $200,000 in debt, and has been unable to pay its staff, rent, and other expenses.
The daycare also said the program guidelines have been “continually changing”, and that it has not received any assurance of long-term funding stability. The daycare said it has no choice but to exit the program, effective March 1, 2024, and to revert to its original fees.
How parents are affected
The daycare’s decision has left many parents in a difficult situation, as they have to either pay an extra $800 a month, find another child-care option, or quit their jobs. Some parents said they have been happy with the quality of care at Ola Daycare, and do not want to uproot their children from their familiar environment.
Some parents also expressed frustration with the lack of communication and coordination among the three levels of government, and called for a more sustainable and transparent funding model for child care. They said the $10-a-day program should not be a political bargaining chip, but a permanent and universal right for families.
What other child-care operators are saying
Ola Daycare is not the only child-care operator that is facing challenges under the $10-a-day program. The YMCA, the largest child-care provider in Ontario, has warned that many centres are at risk of closure if the province does not update its compensation formula soon.
The YMCA said the current funding model does not cover the full cost of delivering quality child care, and that it has been losing money every month since joining the program. The YMCA said it needs more flexibility and clarity from the province on how to allocate the funding, and how to adjust the fees for different age groups and regions.
The YMCA also said it supports the vision and goals of the $10-a-day program, but it needs a more realistic and reliable funding framework to make it work.
