Parents at some private for-profit daycare centers across the GTA say their fees could soon double as operators consider exiting the national $10-a-day childcare program. You have been warned.
Andrew Bertucci told CP24.com this week that his son’s Bloor West Village nursery school is considering withdrawing from the Canada-wide National Early Learning and Care Program (CWELCC). He said he was shocked and devastated when he received a letter informing him of what was being done. $10 per day program. Since its introduction in 2022, guardian fees have been reduced by more than 50%.
“The list was very long and we finally found a daycare. We thought the daycare was part of this program, the CWELCC program, which itself was difficult to find,” he said.
“We were very happy with everything and how things were going, and we were told that the rates would actually go down as the program rolled out.”
However, in a letter from his nursery school, Teddy Bear Academy, shared with CP24, parents say that due to “CWELCC’s latest changes” their participation in the program is currently in jeopardy and that the operator will I was told that the warning would start from January 2025. Fees could increase “significantly.”
CP24.com has reached out to Teddy Bear Academy for comment on the letter, but has not received a response.
“This information is being shared with you in advance as a precaution should we need to consider alternative childcare arrangements in the coming months,” the letter reads.
“We share your frustration with this uncertainty and appreciate your understanding and continued support.”
“It has a big impact.”
Bertucci said he and his wife currently pay about $1,000 a month for day care for their 2-and-a-half-year-old son.
She said her other child is about to start daycare in a few months, so monthly daycare costs for both children could jump to more than $4,000 a month if the daycare leaves the program. .
“At that point, it’s not worth it for either my wife or me to work. What message does that send to my wife? Because we have worked hard to move forward,” he said.
“She has to put her career on hold.”
Bertucci said after speaking with other parents around the GTA, she learned that many other parents had received similar letters from their respective daycare centers.
“We’re all scratching our heads. We don’t even know what’s going on,” he said.
“There’s not a lot of information being shared, but it has a huge impact on us and all our families.”
Similar letters were sent to parents of children at Little Kids Day Care Center in Oakville.
The letter says CWELCC’s current structure makes it difficult to “remain financially sustainable.”
The letter notes that daycare centers may also need to opt out of the CWELCC in the coming months.
“In its current form, the CWELCC program’s cost management framework places significant restrictions on how funds are allocated, thereby limiting our ability to invest in our centers in ways that benefit children, families, and staff.” It is written in the letter.
“Furthermore, with an increased level of government control over our operations, including how money is spent, we are increasing the level of government control over our operations to ensure our nurseries remain vibrant and thriving ‘second homes’.” It becomes more difficult to improve and make decisions. An environment that everyone can use. ”
The letter further stated that “no final decision has been made.”
“If you decide to opt out, we will provide you with sufficient notice and clear information about how this change may affect your fees and the services we provide,” it says. Masu.
“We understand the importance of transparency and welcome any questions or concerns we may have as we move forward with this decision.”
Debbie Cunha, CEO and owner of Little Kids Day Care Center, said in an email to CP24.com that the letter outlines “many reasons” why the company may have to withdraw from CWELCC. He said there was.
“There are many factors that put my business, and many other child care centers, at risk of closure,” she wrote.
Heather Kay, whose two children attend Little Footsteps daycare in the city’s west end, recently received a letter warning that the center may have to withdraw from CWELCC. said.
“My reaction to this was not that surprising. I think there were a lot of questions from the beginning, when nurseries first signed up for this program. “I felt like I wasn’t communicating to them,” she told CTV News Toronto.
“For me, there was always the potential risk that they would come back and say that the program was run and that it didn’t meet local needs.”
She and other parents said they are struggling to reconcile the contradictory claims made by daycare operators and the state government.
In August, the state announced a new funding structure that will take effect on January 1, 2025. Then-Education Minister Todd Smith said the changes would give businesses more “flexibility” in how they allocated spending. The province also announced that starting in January, parental fees will be capped at $22 per day across Ontario.
“There’s a disconnect here,” she said.
“As a parent, it’s difficult to understand what’s going on, but the government is clearly telling a different story than the nursery operators.”
Nonprofits generally open to change
Carolyn Ferns, policy coordinator with the Ontario Coalition for Better Child Care, said the province will move away from the revenue replacement model and introduce cost-based funding starting in January.
He said many in the field believe that switching to a cost-based funding method would be much better for day care operators.
She said she has discussed the change in recent months with a number of not-for-profit operators, which account for more than 70 per cent of child care spaces in Ontario. That’s because the number of commercial spaces is limited to 30%. .
“Their reactions to this funding formula are very different,” Ferns said of nonprofit operators, adding that they are generally positive about the change.
He said the funding scheme would provide “benchmark funding” based on average costs in your area, and if nursery costs are higher, a traditional top-up would be provided to cover the additional costs. said.
“In addition to that, you also need money instead of profits or surplus,” Ferns said. “I think these are things that most people would consider reasonable.”
“It’s a complete takeover.”
But Jackie Shepherd, a spokeswoman for the Private Operators Group, which represents more than 950 private child care providers in the state, said private for-profit facilities should ask the state to pause implementation of the new funding formula. He said he was looking for it.
“We were told that coming soon in January… we would be switching to a cost-based program. Now that we are no longer focused on our quality and can make our own decisions, Everything has changed. We now have complete control over what we use and how we use it,” she said in an interview with CP24.com.
“We have to make changes that are unacceptable in any industry. It’s a complete takeover. It takes away all our power, it takes away all our decision-making, it actually puts us under government control. This is unfair.”
The state also previously advised licensed operators in a memo that starting in 2025, centers that are not participating in the CWELCC will receive the normal benefits they previously received, such as general operating expense subsidies, fee subsidies, and wage enhancement subsidies. The company was notified that it would lose its funds.
The memo further stated that households currently receiving the fee subsidy will continue to receive the subsidy until their child leaves the service or reaches advanced age.
Shepherd said some operators will likely wait and see how the new funding formula affects their business, while others will withdraw from the program and pay their parent fees. He said there is a possibility of price increases.
He noted that deadlines for withdrawing from the CWELCC vary by region. In Toronto, daycare operators have until the end of October to notify the municipality, she said.
Shepherd added that a number of organizations, including POG, the Ontario Association of Independent Child Care Centers and the Alberta Association of Child Care Entrepreneurs (AACE), are advocating for changes to the way the CWELCC program is rolled out in the province. And all over the country.
“This is what we want to happen. We’re simply asking for a pause, a cancellation of the January hearing,” Shepherd said.
“Let’s stop. Let’s continue with the revenue-based activities we’re doing and come back to the table and talk about how we can move forward.”
Provinces say Ottawa needs to provide more funding, flexibility
Ontario Education Minister Jill Dunlop said in an email to CP24.com that the province has “fought long and hard” to ensure parents get the “best deal” when it comes to national child care programs. said.
“As a mother of three children, I understand what parents are going through,” she wrote.
“We were able to secure a $13.2 billion commitment over six years from Ottawa, and Ontario continues to provide even more funding for child care and early childhood education, $33.4 billion.”
She said she has discussed the issue with child care providers and parents across Ontario, as well as federal Minister of Families, Children and Social Development Jenna Suds.
“What’s clear to me is that Ottawa should provide more funding, remove caps on for-profit providers, and give providers more flexibility to help cover costs and provide parents with the space they need. It means you have to give,” Dunlop said.
Suds responded that the state had a “responsibility to families” by signing the agreement and now working with the federal government to deliver $10-a-day child care by 2026.
In an email to CTV News this week, the minister accused the province of “dragging its feet” in announcing new funding formulas, and suggested it would do the same again when it comes to creating child care spots.
“My focus is to hold Ontario accountable and remove children from child waiting lists. Ontario has all the resources they need, they just need to roll up their sleeves and get the job done, and parents… expects it,” she wrote.
“It’s easy to say raise the cap and give us more money instead of putting in the effort ourselves, but we weren’t elected to do what’s easy, we were elected to do what’s right. It was.”
She said she recently met with Dunlop and “reiterated” the need for the state to create a nonprofit space.
“Research consistently shows that nonprofits provide higher quality child care because every dollar is reinvested directly into the workforce, the children, and the center itself. ” she said.
“We have seen that privatizing health care results in increased costs, unequal access, and disparities in quality. The same thing happens with our nation’s child care system, and it also applies to parents. It’s not fair to the kids either.”
Mr Kay said it was clear more communication was needed between the government and child care providers, but parents needed answers.
“Parents need clarity because this is scheduled from January 1,” she said.
“You can’t move kids to a new nursery on a dime. It’s not something you can do quickly. It’s very difficult to find alternative care, so I think there needs to be some communication and decision-making quickly.” Masu.”
With files from The Canadian Press
