TORONTO - Ontario has told child-care centres that it will implement a new way of funding the national 10-dollar-a-day program starting in 2025.
Child-care centres, including the Y-M-C-A, have been warning of the risk of closures if the funding formula isn't soon updated to cover the actual cost of providing care, rather than just replacing the revenue they've lost from the now-discounted fees.
After several delays, the province told them in a memo last week that the new structure will be in place for next year.
Education Minister Stephen Lecce says he's providing certainty to operators.
Traditionally, child-care centres have raised parent fees when they faced rising expenses such as staffing costs, catering, rent, heating and supplies.
However, any operator that wanted to sign on to the national plan had to freeze their fees in March 2022, which means the government's revenue replacement model is based on rates that don't reflect the true current cost of providing child care.
Some operators say the amount Ontario has factored in for inflation is not cutting it.
The ministry has now told operators that a new, cost-based funding approach will be in effect starting in January 2025, and that the details of that new formula will be announced soon.