The federal initiative to provide affordable child care across Canada is grappling with significant challenges. A recent report from the Canadian Centre for Policy Alternatives (CCPA) reveals that the ambitious goal of creating 284,000 new child-care spaces by March 2026 is falling dramatically short, with a deficit of approximately 90,000 spaces. The initiative, which aimed to reduce fees to about £10 a day, has predominantly seen new openings in the for-profit sector, raising concerns about the quality and accessibility of care for families across the nation.
Background of the Initiative
Launched in the 2021 federal budget, the Canada-wide Early Learning and Child Care (CWELCC) programme was designed to prioritise non-profit daycare spaces for children under six years old. The intention was to ensure affordable, quality care while simultaneously easing the financial burden on families. However, the agreements made with various provinces and territories have varied widely, complicating the delivery of the program’s objectives.
By September 30, 2025, only 194,000 new licensed spaces had been established, and many of these were not included in the CWELCC framework. This discrepancy raises questions about the effectiveness of the programme and its future sustainability.
Provincial Disparities in Space Creation
While some provinces are on track to meet their goals, many, including Alberta, Saskatchewan, and Nova Scotia, are projected to fall significantly short. The report highlights that a staggering 57 per cent of newly created spaces are in for-profit centres. In Alberta alone, for-profit operators have added 29,000 spaces since 2022, compared to just 3,700 in non-profit centres.
This shift towards for-profit child care has sparked concern among advocates for a public system. David Macdonald, a senior economist at CCPA, emphasised, “This has been an overwhelmingly for-profit expansion.” As provincial ministers prepare to convene in Ottawa, the report underscores the urgent need for reassessment of strategies to meet the programme’s objectives.
The Case for Non-Profit Child Care
Advocates for public and non-profit child care argue that government support must increase to address the challenges faced by the sector. Morna Ballantyne, executive director of Child Care Now, stated that insufficient public funding for capital expansion is a significant barrier to creating new spaces. Without additional assistance, the trend towards an increasing number of for-profit spaces could entrench a two-tier system, where wealthier families have better access to care, while lower-income families struggle to find affordable, licensed options.
Krystal Churcher, chair of the Association of Canadian Early Learning Programs, suggested removing restrictions on for-profit providers under the CWELCC system to enhance space availability. However, critics warn that this could lead to a decline in overall care quality. A report from Quebec’s auditor general noted that for-profit centres often fall short of the standards set by their non-profit counterparts.
The Challenge Ahead
Despite the challenges, the national programme has made strides in making child care more affordable for many families. Yet, the persistent issue remains: finding a suitable space. Macdonald remarked, “The real challenge is going to be finding a space. We’ve made some improvements there, but there’s a lot more room to go.”
As provincial governments wrestle with these realities, the future of affordable child care in Canada hangs in the balance.
Why it Matters
The implications of this report extend beyond mere numbers; they touch upon the very fabric of Canadian society. Access to affordable, quality child care is crucial for supporting working families and fostering early childhood development. As the landscape shifts towards a predominance of for-profit care, there is a real risk of exacerbating inequalities, threatening the ideal of a universally accessible child-care system. The government’s next steps will be pivotal in determining whether the original vision of affordable child care can still be realised or if it will become an unattainable goal for many families.
