Ontario signs a $13.2 billion deal with Canada to cut its child-care fees in half by year-end

Representative image of Child care center. Image credit: Unsplash/ Zoo_Monkey

Toronto/CMEDIA: Canada’s Prime Minister Justin Trudeau, Ontario Premier Doug Ford alongside other political leaders appeared together and formally announced this morning at a YMCA childcare center in Brampton, Ont. about $13.2 billion child-care deal Ontario has signed with the federal government.

Trudeau called the deal a historical moment since all provinces and territories have already signed child-care deals and said the new program will offer a savings of an average of $6,000 per child and would relieve the families of the escalating household costs.

“Child care is becoming a reality for all Canadians,” said Trudeau.

The provincial government is hoping to implement $10-a-day child care, although that rate isn’t expected to happen until September 2025. 

“It’s a great deal for Ontario parents and the right deal for Ontarians…a deal that provides flexibility in how we allocate federal funding, flexibility that is critical for making this deal work for Ontario,” said Ford.

As of April 1, 2022, families with children five years old and younger enrolled in licensed child care centers will have their fees reduced up to 25 percent to a minimum of $12 per day.

Parent rebates, retroactive to April 1, will begin in May. In December 2022, fees will be reduced further to about 50 percent on average, and will further slash rates in the coming years. In September 2024 fees will be reduced even further, A final reduction in September 2025 will bring fees down to an average of $10 per day.

The deal will also see Ontario create 86,000 child-care spaces, which includes more than 15,000 spaces already created since 2019.

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