Alberta introduces flat monthly child-care fee for consistency across province

Alberta has introduced a $15-per-day childcare rate for the province. Chelan Skulski has reaction.

In an attempt at consistency and transparency, the Alberta government says it will implement a flat monthly fee for full-time licenced child care, roughly equal to $15 per day.

Starting April 1, families will pay $326.25 per child up to kindergarten age per month for full-time care, no matter their location. Part-time care will cost a flat rate of $230 per month.

Although parent fees were already reduced in 2024 to an average of $15 per day in Alberta through a funding agreement with Ottawa, some families have been paying more than the average because of their location, child’s age, or choice of provider, the government says.

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Additionally, it says it heard criticism from providers over the fairness and complexity of the arrangement.

So starting April 1, Alberta is also increasing funding to child-care operators from $250 million to $720 million for one year, which it characterized as inflationary support to the joint federal-provincial program.

Most operators will see a two-per cent bump in funding. The government’s subsidization will vary between 13 daycare regions and seven dayhome regions, mapped to accommodate the cost of providing service in an area. Those that charge the lowest fees could see more than a two-per cent bump in funding, Jobs, Economy and Trade Minister Matt Jones told reporters on Thursday.

“Using statistical analysis and a cost survey that we sent out to the entire child care sector – which the vast majority did complete – we determined statistical ranges that would support the viability of at least 85 per cent of providers. And the providers above that were super high fee, in some cases three times the fees of other child care providers for the same age child in the same region meeting the same standards,” Jones said.

“I’m confident that these regions have been correctly calibrated to accommodate the differential costs in rural settings versus say a major urban centre.”

The Alberta government is also increasing the portion of monthly pre-school fees it covers on behalf of families from $75 to $100 per child.

With the changes, about 80 per cent of the estimated $18,000-per-child cost of providing care in Alberta will be covered by provincial and federal funding, Jones said.

Under the new fee schedule, operators will be able to charge supplemental fees for optional services that are “beyond” the definition of core care. This could include field trips, transportation or meals and will be reported to the ministry, Jones said. However, operators will be able to choose how to spend the government’s funding and could provide such services for no extra charge, as some may already. Operators are not allowed to treat families who choose to pay supplemental fees preferentially, the minister added, promising his department would investigate complaints.

No changes are being made to the out-of-school care program for children in Grades 1 through 6 or attending full-time Kindergarten.

Alberta also announced on Thursday $53 million for space-creating projects, called the Building Blocks Capital Grant Program.

Families, child care sector reacts

CTV News Edmonton spoke with both families who believe the changes will benefit and strain their household budget.

More than one expressed doubt the flat fee and regional subsidy plan would better help families most in need.

Single Edmonton mom Ashley Cooper, who is fully responsible for the costs of raising her almost three-year-old son, says daycare currently costs $130/month, about $200/month less than the flat fee coming into effect April 1.

“It’s gonna take a big hit on our grocery budget, on my freedom to take a sick day if he needs me at home,” she told CTV News Edmonton.

“Two hundred dollars is not a little amount of money.”

However, a Calgary mother of twins believes the new fee schedule could save her family potentially $1,400/month once the babies are old enough to receive care.

“At the current prices, it almost did not make sense for me to go back (to work) since it would be my entire salary paid to child care,” Erin told CTV News Calgary.

Another Edmonton parent called it manageable, but still a blow.

The chair of the Association of Child Care Entrepreneurs said it was too early to comment, seeing as the group was not consulted or provided advance notice of the change. A town hall for providers was scheduled for later Thursday evening.

“If I’ve learned anything in the last three years of the $10/day program (it’s) that the devil is always in the details with any of these program changes,” said Krystal Churcher.

Within three hours of the province’s new conference, she had hundreds of emails from child-care operators with questions.

“Regardless of the details and how wonderful the outcome of today’s announcement may be, the delivery is, again, constantly a failure.”

Future of the provincial-federal agreement

The five-year $3.8-billion Canada-Alberta Canada-Wide Early Learning and Child Care Agreement was signed in the fall of 2021 and is set to expire in March 2026.

The plan not only sought to reduce fees to $10/day for families, but also to grow Alberta’s child-care system. Since it was implemented, the provincial government says it has created 31,000 spaces out of a goal of 68,700 and grown the workforce by 10,000 early childhood educators.

Jones said Alberta, during discussions about renewing the deal, would be advocating for a more sustainable arrangement. He said Thursday he’d like to see the program means – or income – tested. With the system at 96-per cent capacity, he says some people who need a government-subsidized space the most are stuck on a waitlist.

But the looming federal election makes the future more uncertain.

Jones said he has been unable to meet with the current government and has not started any discussions with the federal Conservative Party of Canada. The party would not tell CTV News Edmonton if it would commit to continuing the program if elected.

Despite Alberta’s initial resistance to the Canada-Alberta Canada-Wide Early Learning and Child Care Agreement, Jones said Thursday federal funding is necessary to provide a child-care system like the one that exists today.

“This is a very big program – over $1 billion in Alberta – and it would be very difficult for any province or territory to fund their program absent the federal partner.”

With files from CTV News Edmonton’s Chelan Skulski