By Canadian Press

Federal child-care cash linked to daycare fee drop in some cities, study says

Mar 12, 2020 | 8:12 AM

OTTAWA — A new report says federal spending on child care has eased costs in a handful of cities nationwide where Ottawa’s cash was used to reduce fees.

The annual report on child-care fees from the Canadian Centre for Policy Alternatives noted steeper-than-expected declines in a few cities since federal money began to flow in 2017.

St. John’s, N.L., saw the sharpest drop for pre-school spaces in the country over the past three years, thanks to what the report says is a combination of provincial and federal efforts to reduce costs for parents.

On the other hand, Toronto and Ottawa saw little change in fees over the same period because they did not implement fee-reduction programs between 2017 and 2019, the report says.

David Macdonald, one of the authors of the report, says the findings suggest that government funding to providers along with fee caps can reduce the cost parents pay for daycare.

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The upcoming federal budget is supposed to include details on a Liberal campaign promise to create 250,000 before- and after-school care spaces and cut fees by 10 per cent.

This report by The Canadian Press was first published March 10, 2020.

The Canadian Press