What is $10 a Day Daycare in Canada and How Does It Work?

The $10 a Day Daycare program in Canada, officially known as the Canada-wide Early Learning and Child Care (CWELCC) system, is an initiative aimed at providing affordable and high-quality child care services to families at an average cost of $10 per day by the year 2026. Here’s how it works and who qualifies for it:

What is $10 a Day Daycare?

  • The program is a joint effort between the Canadian government and individual provinces and territories, with the goal of making high-quality childcare affordable and accessible to all families, regardless of their financial background.
  • The funding for this initiative builds on existing investments in early learning and child care made by provinces and territories.
  • The focus is on investing in regulated early learning and childcare programs for children under the age of six, tailored to local and regional needs.

How Does $10 a Day Daycare Work?

  • To achieve the goal of $10 a day childcare, provincial and territorial governments are committed to creating 250,000 new childcare spaces across the country by 2026, with the support of an initial $30 billion in federal funding.
  • The program offers parents a gradual reduction in childcare fees. Participation by daycare facilities is optional, but many have chosen to participate.
  • Parents with children enrolled in qualifying daycares can receive a credit or rebate on their childcare fees. The rebate percentage increases over time, with the goal of achieving an average cost of $10 per day by 2026.

Where is $10 a Day Daycare Implemented?

  • The program is implemented nationwide and has agreements with all 13 provinces and territories, including a unique agreement with the Government of Quebec.
  • The Canadian government is working with provinces and territories to build long-term capacity in the early childhood education and care sector.

Who is Eligible for $10 a Day Daycare?

  • Eligibility varies depending on the program and province or territory.
  • In general, families with lower incomes, single-parent households, and those receiving certain government benefits may be eligible.
  • You are eligible for reduced childcare fees if your current childcare cost exceeds $12 per day, your child is below the age of six, and your child is enrolled in a licensed childcare facility that is part of the national childcare program.

How Much Could You Save?

  • The savings vary based on the fees of your childcare provider and your location.
  • The government has projected average yearly savings per child under the $10-a-day daycare system compared to 2019 fees. The savings can be substantial in some provinces and territories.
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