Child-care costs run ‘wild’ in Ontario
Lack of fee caps mean Toronto parents face highest bill in Canada
More than half of Canadian provinces are using fee caps to rein in parents’ galloping childcare costs, but Ontario isn’t one of them, according to a national survey being released Thursday.
“For the first time in five years, we are seeing movement, with more provinces using public policy to make child care more affordable,” said study coauthor David Macdonald of the Canadian Centre for Policy Alternatives.
“But these bright spots are overshadowed by the fact that fees in Canada remain astronomical, outpacing inflation in most cities,” added the senior economist for the left-leaning think tank.
Toronto parents continue to pay the highest median fees in the country, with infant care topping $1,685 a month or $20,220 a year, says the centre’s fifth annual report on childcare affordability.
Parents in Mississauga, Hamilton and Kitchener pay $1,490, while median infant fees in Vancouver are $1,400 a month, according to the study, which surveyed fees in licensed centres and homes in 28 cities across the country last summer.
Spaces for preschoolers (age 2- 1⁄2 to 4), which make up more than half of the 717,000 licensed spots for young children in Canada, are still the most expensive in Toronto, with median monthly fees of $1,150. Preschool fees in Brampton, Mississauga, Vaughan, Markham, London, Kitchener and Ottawa follow close behind at $1,000 a month, the report says.
Quebec, Manitoba and P.E.I. enjoy the most affordable child care in the country, thanks to long-standing provincial fee caps. The median monthly cost for all age groups in Quebec is less than $200, while median monthly preschool fees in Manitoba and P.E.I. are $451 and $586 respectively, the report notes.
But the recent introduction of fee caps in Newfoundland, Brit- ish Columbia and Alberta are starting to make a difference for parents in those provinces, too, Macdonald said. For the first time, median fees for preschoolers in St. John’s and Edmonton went down last year, the report says.
Alberta expanded a $25-a-day pilot project launched in 2017 from 22 centres to122 locations last year.
B.C.’s new fee-reduction initiative has lowered parent costs by $100 to $350 a month in participating centres. And the NDP government rolled out its promised $10-a-day program in 53 centres last fall.
As part of a 10-year plan launched in 2012, Newfoundland introduced operating grants in 2018 to centres that agreed to cap daily fees at $44 for infants, $35 for toddlers and $30 for preschoolers.
“Almost half of the spaces surveyed in St. John’s in 2018 were participating in the Operating Grant Program, which is reflected in the more than $100 drop in median monthly fees since 2017,” the report says.
In all cases, provinces used federal funding to cap or reduce fees, the report notes, adding such collaboration “can hopefully create a foundation for improving child-care affordability in the future.”
But in Ontario, where the previous Liberal government had planned to introduce free preschool starting next year, Doug Ford’s Progressive Conservatives have promised a child-care fee tax rebate instead.
Toronto parent Jessica Dumelie, 30, who is on maternity leave with her second child, is bracing for the financial fallout when she returns to her healthcare job next January.
Monthly child-care costs for her daughters, who will be 18 months and almost 4 years old when she goes back to work, will be $1,750 and $1,650, respectively, and easily eclipse her family’s mortgage payments.
Fortunately, the whopping $3,400 monthly child-care bill will drop when Dumelie’s older daughter starts kindergarten in the fall of 2020. But Dumelie and her husband, who works in finance, will still be paying more than $2,000 a month for toddler and after-school care.
“We were very excited about the possibility of free preschool for our younger one,” said Dumelie, a member of the parent group Toronto East Enders for Child Care. “But now that doesn’t look like an option.”
She’s not sure how the tax rebate would work or even if her family would qualify.
In the meantime, Dumelie said her family is “making sacrifices” and putting money aside to pay for child care when she returns to work.
“Costs are wild,” she said. “We’ll just have to find some way to make it work.”
Thursday’s report also takes a closer look at child-care costs in Quebec, where about twothirds of centres and home daycares are publicly funded with fees set at $7 a day. The rest are private businesses that charge “market” rates.
Since the mid-2000s, Quebec has offered parents who use private centres a child-care tax rebate to help cover the cost. But even with the tax rebate, parents in those centres pay fees that are between two- and three-times higher than those in publicly funded programs with a set fee, the report notes.
At an annual cost of about $800 million a year, Quebec’s child-care tax rebate clearly isn’t as effective as set fees when it comes to parent cost, Macdonald said.
Quality in Quebec’s private centres isn’t as high as in $7-aday programs either, added the report’s co-author Martha Friendly, citing recent research in that province.
“Since we have been doing these studies, the fees (across the country) have continued to go up, up, up,” said Friendly, the executive director of the Child Care Resource and Research Unit.
“What this report found is that in provinces that set fees, it has an effect in the centres covered by the policy. But it doesn’t have an effect on market-fee centres,” she said.
The experience in Quebec shows Ontario would be making a mistake if it introduces its promised child-care fee rebate, Friendly added.
“We are moving from free child care — the most affordable — to a mirage,” she said. “You don’t create accessible, affordable and quality child care by sending (parents) a cheque or giving them a tax rebate.”