Alberta rolling out new child-care funding formula to make $15 per day the flat rate

Alberta's government is replacing its child-care subsidy program with a $15-a-day flat rate for children kindergarten age or younger.

Jobs, Economy and Trade Minister Matt Jones says although the average daily cost hit $15 in January, fees vary depending on the provider and where in the province they operate.

"In Calgary, we have providers that are charging radically different fees for children the same age and that is confusing for parents, and providers have also expressed concerns about equitable funding," Jones said Thursday.

Starting April 1, there are to be minimum and maximum fee ranges for providers based on region. The subsidy for children attending out-of-school care won't change.

Jones said the flat fee would make the system more equitable and transparent and simplify it so providers spend less time and money doing paperwork.

It comes as part of the federal government's $3.8-billion effort to bring average child-care fees in Alberta down to $10 per day by 2026.

Jones said the Alberta government feels there should be some cost so child-care spaces are utilized appropriately.

"We've heard from parents and providers that people are onboarding on spaces that they do not need, because they are so inexpensive or free.

"There are thousands of children accessing a service that costs upwards of $18,000 for zero dollars today," he said.

For children attending full-time, the flat fee would be $326.25 per month, or roughly $15 per day, while parents needing part-time care would pay $230 per month.

About 85 per cent of providers are to see a funding increase of two per cent or more to help deal with inflating costs.

"The funding framework is very much set to support the viability and sustainability of the vast majority of child-care providers and more closely mirror the actual cost of delivering child care in that region," Jones said.

Providers are allowed to charge families extra for services like meals, transportation and field trips.

Susan Cake is the chair of Child Care Now Alberta, a group that advocates for high quality, accessible child care. She is concerned that the measure will create a two-tier system that will put parents who can't afford the extras in an awkward position.

"For parents to get the exact same quality of care that they receive now, they actually may see a fee increase,"Cake said, 

"Or they may have to be put in a position where they are having certain parts of their care taken away."

If there is a waitlist, Cake said providers may decide to take children whose families can pay the extra fees over those that can't. 

Operators have questions

Krystal Churcher, chair of the Association of Alberta Childcare Entrepreneurs, said she was disappointed operators weren't given the details before Thursday's announcement.

She said she's frustrated for her colleagues on the front line.

"[They] are now facing all these questions and anxiety and panic from parents where they don't have the ability to answer them, because they haven't been included in the conversation with the ministry yet," she said.

Churcher said without knowing much about the program, she couldn't speak to whether it's positive or not. Her association has been advocating for parents to receive funding directly.

"The way this program is rolling out federally, it does not respect parental choice. It forces parents into a system where they get to pick from one option," she said, adding the system has led to an accessibility crisis.

"We are dealing with a system that is full," Jones added, and utilization is at 96 per cent.

The province has committed to the federal goal of creating 68,700 child-care spaces by March 2026, and 42,500 spaces must be public or non-profit.

Jones said so far Alberta has created 31,000 new spaces, and it's tripling its yearly contribution to $720 million from $250 million.

Instead of a flat monthly parent fee, Alberta's government is increasing reimbursement for preschools to $100 per month per child, up from $75.

Non-profit and public child-care providers can now also apply online for grants under a $53-million program to help build, expand or upgrade child-care spaces.