A stark discrepancy exists between the funding provided under the Canada-Wide Early Learning and Childcare (CWELCC) agreement and the actual costs required to maintain high-quality childcare services based on numbers from Alberta, according to a report conducted by the Association of Alberta Childcare Entrepreneurs (AACE). While CWELCC is well-intentioned, it is underfunded, according to the report. To meet its demands, AACE estimated it would cost about $60 billion annually across Canada, which is far higher than the current funding allocated by the Canadian government. The AACE said the current CWELCC funding model is insufficient. It added the Canadian government’s allocation of $30 billion over five years falls far short of the about $60 billion annually required to support 100% of children with quality childcare programming.Childcare providers are facing serious financial problems because of underfunding, and many have been required to scale back essential services or face closure. This has led to the quality of care declining, and many childcare operators are struggling to maintain staffing and meet operational costs. The AACE said for the CWELCC to function effectively and sustain a high-quality childcare system, the annual cost would need to be around $60 billion. This figure comes from the enhanced model of childcare, which consists of comprehensive staffing, facility maintenance, and high-quality programming. Without increased financial support, it said it is likely to fail, leading to reduced quality of care, childcare centre closures, and a lack of access to affordable options. In response, it recommended a reassessment of the funding model and will advocate for policies reflecting the true cost of delivering high-quality childcare across Canada. The AACE concluded by saying this analysis underlines the urgent need for federal and provincial governments to collaborate on a sustainable funding solution to avoid a childcare crisis in Alberta and beyond. The AACE said in January private childcare operators were being strong-armed into accepting a deal for the Canadian government’s $10 per day childcare agreement with the Alberta government.READ MORE: Alberta childcare operators say they will ‘reluctantly’ sign on to Liberal’s $10 daycare agreementAACE Chair Krystal Churcher said childcare operators have no choice but to sign the 2024 Affordability Grant Agreement or face drastic service reductions and insolvency.“This decision should not be considered a win for the Alberta government, the Government of Canada, or for the childcare sector,” said Churcher.
A stark discrepancy exists between the funding provided under the Canada-Wide Early Learning and Childcare (CWELCC) agreement and the actual costs required to maintain high-quality childcare services based on numbers from Alberta, according to a report conducted by the Association of Alberta Childcare Entrepreneurs (AACE). While CWELCC is well-intentioned, it is underfunded, according to the report. To meet its demands, AACE estimated it would cost about $60 billion annually across Canada, which is far higher than the current funding allocated by the Canadian government. The AACE said the current CWELCC funding model is insufficient. It added the Canadian government’s allocation of $30 billion over five years falls far short of the about $60 billion annually required to support 100% of children with quality childcare programming.Childcare providers are facing serious financial problems because of underfunding, and many have been required to scale back essential services or face closure. This has led to the quality of care declining, and many childcare operators are struggling to maintain staffing and meet operational costs. The AACE said for the CWELCC to function effectively and sustain a high-quality childcare system, the annual cost would need to be around $60 billion. This figure comes from the enhanced model of childcare, which consists of comprehensive staffing, facility maintenance, and high-quality programming. Without increased financial support, it said it is likely to fail, leading to reduced quality of care, childcare centre closures, and a lack of access to affordable options. In response, it recommended a reassessment of the funding model and will advocate for policies reflecting the true cost of delivering high-quality childcare across Canada. The AACE concluded by saying this analysis underlines the urgent need for federal and provincial governments to collaborate on a sustainable funding solution to avoid a childcare crisis in Alberta and beyond. The AACE said in January private childcare operators were being strong-armed into accepting a deal for the Canadian government’s $10 per day childcare agreement with the Alberta government.READ MORE: Alberta childcare operators say they will ‘reluctantly’ sign on to Liberal’s $10 daycare agreementAACE Chair Krystal Churcher said childcare operators have no choice but to sign the 2024 Affordability Grant Agreement or face drastic service reductions and insolvency.“This decision should not be considered a win for the Alberta government, the Government of Canada, or for the childcare sector,” said Churcher.
