The Ontario government has told child-care centres that it will implement a new way of funding the national 10-dollar-a-day program starting next year.
The change was relayed in a memo to child-care centres last week.
Child-care centres, including the YMCA, have been warning of the risk of closures if the funding formula isn’t soon updated to cover the actual cost of providing care, rather than just replacing the revenue they’ve lost from the now-discounted fees.
In the past, child-care centres raised fees to cover additional expenses, but any operator that wanted to join the national plan had to freeze its fees in March 2022.
That means the government’s revenue replacement model is based on rates that don’t reflect the true current cost of providing child care.
Written by: The Canadian Press
