Canada's $10-a-Day Childcare: What Families Need to Know

When planning a family in Canada, the cost and availability of childcare are major concerns for many parents. Demand for child care has risen over recent decades, and fees have followed suit. Canada’s national child care initiative, the Canada-wide Early Learning and Child Care (CWELCC) system, is designed to make childcare more affordable, with a goal of an average cost of $10 per day by 2026. This article explains how the $10-a-day plan works, how it’s being rolled out, who is eligible, and how families can benefit.

How much does daycare cost in Canada?

Childcare costs are one of the largest household expenses for families in Canada. Outside of Quebec, where an affordable system has long been in place, many parents face high fees. The average Canadian family spends nearly $10,000 per year on daycare for one child, and families in urban centres often pay much more. High fees and long wait-lists can deter couples from starting or expanding their families, and can force parents—often mothers—to reduce working hours or leave the workforce.

How does $10-a-day daycare work?

The national child care program aims to lower fees to an average of $10 per day by 2026 while expanding access and improving inclusion across provinces and territories. The federal government committed initial funding of $30 billion over five years to support this effort. Provincial and territorial governments are using these funds to create new child care spaces, with a collective target of 250,000 additional spaces by 2026.

Participating licensed child care providers apply funding to reduce parent fees. Facilities may opt in or opt out of the program; for example, about 92% of licensed child care sites in Ontario had opted in as of November 2022. Parents whose children attended a participating facility between April 1 and December 31, 2022, were eligible for a rebate or credit of up to 25% of their fees. In 2023 the reduction increased to about 50%, and governments plan to continue lowering fees gradually until the average $10-per-day target is reached.

Once fully implemented, the program is expected to boost the economy, raise employment rates—especially among women—and increase participation in early childhood education programs.

Eligibility

Parents and guardians do not typically need to apply directly for fee reductions; reductions are applied by participating licensed providers. You may qualify for reduced fees if:

You currently pay more than $12 per day for child care.
Your child is under six years old.
Your child is enrolled in a licensed child care facility that participates in the national child care program.

Potential savings

Actual savings depend on the fees charged by your provider and the extent of provincial implementation. Below are government estimates for average annual savings per child compared with 2019 fee levels:

Province/Territory	Estimated annual savings
Alberta	$8,610
British Columbia	$9,390
Manitoba	$2,610
New Brunswick	$5,220
Newfoundland and Labrador	$7,560
Northwest Territories	$7,300
Nova Scotia	$6,780
Nunavut	$7,300
Ontario	$9,000+
Prince Edward Island	$4,170
Saskatchewan	$5,220
Yukon	$7,300

What impact will the program have on families?

Reducing child care fees will free up household income, making it easier for families to cover other essentials such as housing, transportation, and food. In provinces like Ontario and British Columbia, typical families could save more than $9,000 per child annually compared with 2019 levels. Those savings can be significant for household budgets and long-term planning.

Lower fees may also encourage more couples to have children, reduce pressure on parents to leave paid work to provide childcare, and support a stronger labour market participation rate for women—trends already visible during and after the pandemic. Overall, affordable childcare can improve family financial resilience and support children’s access to early learning opportunities.

What should you do with the rebates you receive?

If your family receives a rebate or fee reduction through CWELCC, you can choose how best to use those funds according to your priorities. Common options include:

Contribute to a registered education savings plan (RESP) for your child’s future schooling.
Pay down high-interest debt such as credit card balances, car loans, or portions of a mortgage.
Build or top up an emergency savings fund to cover unexpected expenses.
Allocate the money toward family goals, such as annual vacations, home repairs, or longer-term investments.

Personal experience with $10-a-day daycare

When I learned I was pregnant in late 2020, my partner and I researched local childcare options and joined multiple wait-lists. We toured facilities and compared fees, expecting to spend an eye-opening amount—in our case, an estimate of $23,400 for the first year for infant care in a major city. To prepare, we opened a savings account and set aside money monthly to reduce the immediate financial strain.

We tracked which providers had opted into the new national program and which had not, because participating facilities offered substantially lower costs. As a contingency, we placed our child’s name on several toddler-room wait-lists in case our preferred infant space did not become available. Fortunately, our chosen provider did opt in, and we are now expecting reimbursements for 2022 and larger reductions for 2023. Those refunds and ongoing savings will be redirected toward our child’s education and other future needs—an important relief amid rising living costs.

Looking ahead

Overall, $10-a-day childcare has the potential to deliver meaningful financial relief to Canadian families while supporting parents’ continued participation in the workforce. By expanding affordable licensed childcare and investing in early learning, the program aims to improve economic stability for families and provide a stronger start for young children.

Canada’s $10-a-Day Childcare: What Families Need to Know