Childcare Benefits & the $10-a-Day Plan: What Canadian Parents Need to Know
Childcare Benefits & the $10-a-Day Plan represents one of the most transformative social and economic initiatives in modern Canadian history.
For countless families across the country, the high cost of child care has long functioned as a significant, often prohibitive, second mortgage payment.
This federal-provincial collaboration aims to dismantle that barrier, making high-quality, regulated care genuinely accessible by the target date.
As of 2025, this sweeping nationwide program is well underway, but its implementation varies significantly from province to province, creating confusion for many parents.
Understanding the milestones, the economic impact, and the critical issues of space creation and workforce retention is essential for navigating the current system.
This is what Canadian families need to know right now.
What is the Goal of the Childcare Benefits & the $10-a-Day Plan?
The core objective of the Canada-Wide Early Learning and Child Care (CWELCC) system is twofold: to reduce parent fees to an average of $\$10$ per day for regulated spaces by March 2026, and simultaneously to expand the number of available spaces.
This dual focus addresses both affordability and accessibility.
This monumental investment, initiated through Budget 2021, recognizes that affordable child care is not just a social expenditure but a crucial piece of national economic infrastructure.
By removing cost barriers, the plan seeks to increase female labor force participation, thereby boosting the national Gross Domestic Product (GDP).
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How Does the Plan Impact Family Finances Today?
As of early 2025, the vast majority of Canadian families with children in regulated care are already seeing significant savings.
Eight provinces and territories are now delivering regulated care for an average of $\$10$-a-day or less, while all others have achieved fee reductions of at least $50\%$ compared to 2019 levels.
For some families in high-cost cities like Toronto or Vancouver, this reduction has translated into monthly savings often exceeding $\$500$ to $\$1,000$ per child.
This immediate and substantial financial relief frees up thousands of dollars annually, enabling families to better manage inflation and contribute to savings.
Also read: Automatic Federal Benefits in Canada: What the New Pre-filled Tax Returns Mean for Low-Income
Why is the Average Fee a Key Distinction?
It’s vital for parents to understand the term “average.” The target is an average of $\$10$-a-day across the regulated system within a jurisdiction, not a guaranteed $\$10$ rate at every single center.
Fees can and do still vary based on the child’s age (infant care is typically higher) and the specific center’s costs.
Therefore, while your fees might be higher or lower than $\$10$, the province or territory’s overall regulated system meets the federal agreement’s threshold.
Parents should verify their center’s specific fee cap and participation status under the CWELCC system.
Where Are We Now? Assessing the 2025 Status Quo
The federal government, in March 2025, announced extended funding agreements with eleven of the thirteen provinces and territories until 2031, securing the long-term future of the program.
This massive commitment of up to an additional $\$36.8$ billion ensures continued fee reductions and space creation beyond the initial 2026 target.
However, the rapid decrease in fees has exposed an urgent, underlying challenge: the demand for spaces now far outstrips the supply, leading to rapidly growing waitlists across the country.
The success of the fee reduction phase now hinges on the success of the space creation phase.
Read more: What to Do If You Don’t Qualify for a Benefit: Alternative Supports & Emergency Aid in Canada
What are the Current Goals for Space Creation?
As of early 2025, provinces and territories have announced measures to create over 150,000 new child care spaces since 2019.
This is a crucial metric, representing a significant $16$ percent increase in capacity for children aged $0$ to $5$.
Despite these efforts, waitlists are becoming the new access barrier. Statistics Canada reported in October 2025 that the proportion of parents experiencing difficulty finding child care increased from $46\%$ in 2023 to $50\%$ in 2025.
Finding available care remains the top challenge cited by parents.
How Does the Plan Address the Workforce Challenge?
A vital, but often overlooked, component of the CWELCC system is the focus on the Early Childhood Educator (ECE) workforce.
You cannot create new, high-quality spaces without qualified staff. Many provincial agreements include wage grids and increased funding aimed at recruiting and retaining ECEs.
The stability provided by the new funding model is designed to professionalize the sector, moving ECEs off volatile market wages toward better compensation and benefits.
This is a critical investment: the quality of care is directly linked to the stability and compensation of the educators providing it.
Why is Space Creation Lagging Behind Fee Reduction?
The creation of new, licensed child care spaces is fundamentally tied to infrastructure and staffing, two areas that cannot be accelerated instantly.
Finding suitable land, obtaining municipal permits, and constructing facilities takes years, a timeline that inevitably clashes with the speed of fee implementation.
Furthermore, many provinces are wisely prioritizing funding for non-profit and public expansion.
This policy preference ensures that public funds create long-term, stable assets, but it can slow the rollout compared to a reliance on faster-moving private, for-profit entities.
What is the Economic Impact of the $10-a-Day Program?
The economic benefits of the CWELCC plan are already substantial. A recent report by the Centre for Future Work revealed that the program has raised Canada’s national GDP by $32 billion (or over $1\%$) since 2019.
This growth is a direct result of increased ELCC activity and, most notably, enhanced female employment.
The combination of increased female labor supply (estimated at 175,000 full-time equivalents since 2019) and the direct job creation in the ELCC sector demonstrates that the plan is, in effect, paying for itself.
This investment proved instrumental in sustaining Canada’s economy during recent slowdowns.
What is the Status of the Plan Across the Provinces?
Implementation speed is highly varied, reflecting the asymmetrical nature of the federal-provincial agreements.
Quebec and Yukon, which already had similar systems, were already at or near the $\$10$-a-day goal before 2021.
Other large provinces, like Ontario, are using a phased-in approach, with fees capped at a higher amount (e.g., $\$22$ a day as of early 2025) before the final reduction.
Parents must track their provincial and municipal announcements closely, as specific fee reduction schedules and start-up grant criteria for new centers are managed locally. The federal agreement sets the framework, but the details are provincial.
| Province/Territory | Status as of Early 2025 | Target Completion Date | Parent Savings (Approx. Annual Maximum) |
| Quebec | Already under $\$10$ (long-standing program) | Achieved | Varies, high savings maintained |
| Newfoundland & Labrador | Achieved $\$10$-a-day average | Achieved | Up to $\$16,200$ |
| British Columbia | Significant reductions, still phasing | March 2026 | Up to $\$10,800$ |
| Ontario | Fees reduced by over $50\%$ (e.g., capped at $\$22$) | March 2026 | Up to $\$10,200$ |
| Alberta | Significant reductions, still phasing | March 2026 | Up to $\$13,700$ |
Conclusion: Securing the Future of Canadian Families
Childcare Benefits & the $10-a-Day Plan marks an historic commitment to families, economic equity, and national growth.
While the goal of universal $\$10$-a-day care is nearly achieved on average, the immediate challenge remains the creation of sufficient licensed spaces and the stabilization of the ECE workforce.
The program represents a crucial, long-term investment. It transforms the life of a parent who can return to work, the future of a child who receives quality early education, and the strength of Canada’s economy as a whole.
Parents must remain proactive, checking waitlists, securing spots, and demanding accountability on space expansion.
Are you currently on a child care waitlist, and what is your current fee? Share your experience in the comments to help inform other Canadian families.
Frequently Asked Questions
Does the $10-a-Day plan apply to all types of child care?
No. The $\$10$-a-day fee reduction only applies to regulated child care spaces that have officially opted into the CWELCC system.
It generally does not apply to unlicensed home daycares, nannies, or other private arrangements that have not signed an agreement with the provincial government. Always confirm a center’s participation status.
What about the Canada Child Benefit (CCB)? Does this replace it?
No, the Canada Child Benefit (CCB) is a separate, tax-free monthly payment made to eligible families to help with the cost of raising children.
The CWELCC plan is a subsidy paid directly to child care providers to lower fees, making it a complementary benefit, not a replacement for the CCB.
What is the process for getting on a waitlist for $10-a-Day care?
The process is managed locally by each municipality or region. Many cities use a centralized online waitlist system, such as OneList in Ontario or similar provincial portals.
Parents should register their child as soon as possible, as wait times for infants can often exceed one to three years.
Why is infant care still often more expensive than preschool care under the plan?
Infant care typically has higher costs because regulated requirements mandate a much lower child-to-staff ratio (e.g., 3:1 or 4:1) compared to preschool rooms (e.g., 8:1).
While the fees for infant care are heavily subsidized, the overall operating cost remains higher, meaning the final parent fee may still be greater than that for an older child.
What are parents advised to do if they cannot find a regulated space?
Parents who cannot find a regulated space are encouraged to stay on waitlists and explore other government support.
They should also explore local non-profit and public centers, which are often prioritized for new spaces under the CWELCC expansion funding. They can also advocate locally for faster space creation in their communities.
