If you are new to Canada, learning all you need to know about daily life, including finding the right child care, can be overwhelming. At Remitly, we understand the challenges of starting fresh in a new country. Whether you’re settling in Toronto, Vancouver, or any other location, getting familiar with the Canadian daycare system is an essential step when you want to secure a safe environment for your children.
In this guide, we’ll unpack the daycare system in Canada, including how it’s structured, the potential costs, and what kind of support you can access, so you can better understand your options and the resources available to parents.
Understanding the Canadian daycare system
Quality child care is important for early childhood development. For working parents, reliable child care can be a lifeline. Although the system may seem complicated at first, with a little research, you can find the right solution for your situation.
Overview of the daycare structure in Canada
In Canada, you can choose between home-based and centre-based daycare options, with a mix of public and private providers. Child care availability and quality can vary a lot across Canada.
Although there are federal guidelines, provincial and territorial governments govern child care services. This means that child care fees, standards, and availability will be different depending on where you live.
When it comes to availability, you’ll probably come across more options in cities, but this also means higher costs. In rural areas, daycare will be cheaper, but you’ll have limited access to services. It’s worth seeing how you can adjust your budget if you need to find daycare in one of Canada’s cities.
Due to the country’s size and diversity, each province or territory can set its own licensing requirements, including Early Learning standards, staff qualifications, and maximum child care spaces per facility. In many areas, parents can choose between part-day or full-day programs.
Key policies guiding Canadian child care
One of the pressing issues surrounding daycare in Canada is the regional differences. Many centres adhere to guidelines set by provincial ministries of education or social services. Local regulations also address health and safety standards, staff training, and daily programming.
Although each province holds primary responsibility, the federal government has introduced national frameworks that focus on accessibility and affordability challenges.
Recently, there has been more attention on the Canada-wide Early Learning and Child Care Plan to reduce child care fees to an average of CA$10 per day in participating regions. They recognize that providing financial assistance like subsidies, tax credits, and other types of support can help parents with the cost of daycare. This plan also includes trying to increase the number of child care spaces to reduce waitlists.
Importance of daycare for young families
Daycare offers more than just supervision for children. It also encourages social interaction and cognitive development. For newcomers, it’s key to help their children build language skills in English or French and adapt to local culture. Attending daycare also helps your child get ready for the school transition.
For working parents, daycare supports work-life balance and can help with financial stability. When you’re able to focus on work or study, it becomes easier to settle into Canadian life.
Types of daycare available in Canada
In Canada, parents can utilize a broad variety of daycare setups, each with their own benefits and challenges. These range from daycare centres, home daycares, and preschool programs to before and after school services.
Overview of main child care options
Daycare services in Canada can be regulated or unregulated. Regulated child care services include centre-based care, home-based programs, school-aged care, nursery schools and preschools. They are regulated by provincial and territorial authorities.
Families often choose regulated services for the reassurance that caregivers are trained, the environment is regularly inspected, and the program adheres to early childhood education guidelines.
Unregulated daycare services are more informal. They’re provided in the carer’s home or the child’s home. In these cases, you, as the parent, will usually be the only person deciding if this quality is right for your child. They tend to cost less, but government authorities won’t monitor it and you may not have access to child care subsidies.
Typical daycare options
- Centre-based daycare: These programs operate in dedicated facilities. They’re often referred to as daycare centres, child care centres, or nursery schools (for preschool-age groups).
- Home-based child care (also known as family child care): Provided in a caregiver’s home. These settings can be licensed or unlicensed, depending on provincial regulations. The caregiver can offer child care for up to six children, not including their own.
- Not-for-profit child care: Many community organizations or parent-run boards oversee these centres. They can be privately or publicly owned and operated. They tend to hire more qualified staff and often reinvest any extra earnings into program improvements or to keep fees low.
- For-profit child care: Privately owned facilities that may operate as local businesses or parts of larger chains. They usually demand fewer controls or accountability from the authorities.
- Part-day or full-time preschool programs: These focus on early education. They offer flexibility and combine structured learning with home time with parents. They are usually for children aged three to five, preparing them for the transition to kindergarten.
Costs and financial assistance for child care
Balancing quality with affordability can be a difficult challenge, particularly for newcomer families who have just moved to Canada. Thankfully, you can make the most of financial support so that daycare expenses are more manageable for you.
Average daycare costs in Canadian provinces
Daycare costs vary across Canada. Usually, cities like Toronto or Vancouver are more expensive than smaller towns or rural areas. Provinces such as British Columbia have introduced measures to lower fees, offering some types of subsidies to providers.
Full-time daycare for a child 0-5 years costs, on average, $649 CAD per month. This will be more or less depending on the location and the type of program. Regulated and high-quality centres tend to be at the higher end of the cost spectrum. Also, remember to check if the fee covers meals, extended hours, or any specialized programs.
Financial subsidies and assistance programs
The government has introduced subsidies and grants to reduce child care fees, including:
- Tax credits and benefits: The Canada Child Benefit (CCB) and other provincial tax credits can help offset child care expenses.
- Canada-Wide Early Learning and Child Care (CWELCC) system: This is an initiative from the federal and provincial governments to lower fees to an average of $10 CAD per day for regulated programs by 2026.
- Territorial or provincial subsidies: In some regions, low-income families or those with special circumstances can apply for direct assistance. You may need to provide proof of income, employment status, or student enrollment, as the eligibility requirements vary.
Budgeting tips for daycare expenses
Try these tips for saving money on daycare:
- Research provincial programs, starting with your province or territory’s child care ministry. Getting to know the local assistance programs will help you estimate potential costs better.
- Find government resources—official sites have useful resources like the Child and Family support calculator to help you budget.
- Check part-day arrangements. If one parent works part-time, you can then use a part-day program to reduce the monthly fees.
- Look for centres offering progressive-scale fees based on your household income, making them more affordable for families at different income levels.
- Be aware of hidden fees for registration, materials, or extended hours.
Regulation and policies governing Canadian daycare
Investigating local regulations in your province will help you understand what options are available to your family. Different levels of government work together to maintain standards, which often results in overlapping guidelines and can sometimes be confusing.
Role of provincial and territorial governments
In Canada, the provincial and territorial authorities handle most day-to-day regulations. This includes licensing child care centres, enforcing quality standards, and monitoring compliance.
Meanwhile, the federal government sets the general objectives and offers funding for daycare initiatives. However, each province decides its staff-to-child ratio, maximum group sizes, and caregiver qualifications.
Because of these regional differences, it helps to check your province’s guidelines to understand how daycare providers operate. For example, in Ontario, the Ministry of Education oversees licensed child care programs, while in Quebec, the Ministry of Families handles a subsidized system.
The Canada-wide Early Learning and Child Care system
The aim of the Canada-Wide Early Learning and Child Care initiative is to make child care more accessible and affordable across the country. The program encourages each province or territory to sign an agreement with the federal government to make child care fees more affordable, increase the number of licensed child care spaces, and support training for childhood educators.
Some provinces already have strong subsidy structures in place, while others are gradually implementing new policies. The government aims to achieve a standardized rate of about $10 CAD per day in many regions by 2026, although progress varies. Try to keep an eye on local announcements for changes that could reduce your family’s child care costs.
Compliance and licensing requirements
Licensing criteria typically cover:
- Health and safety: Providers must meet building codes, sanitation guidelines, and childproofing measures.
- Staff qualifications: Most licensed centres require educators to hold early childhood education credentials.
- Curriculum standards: Many licensed facilities follow a recognized curriculum framework that blends play-based learning with academic readiness.
Unlicensed or home-based providers usually have high standards. But as a newcomer to the area, it’s best to check or ask neighbours. Ask about safety measures, references, and daily activities.
Benefits and challenges of the Canadian daycare system
One of the best parts about daycare is the opportunity for educational and social development.
Advantages of enrolling children in daycare
- Early Learning opportunities: Licensed centres often employ qualified educators who introduce basic literacy, numeracy, and problem-solving skills through play.
- Routine and structure: Many programs follow a schedule that includes play, snacks, naps, and educational activities.
- Parent support: Daycare enables parents to work, study, or complete other commitments.
- Social development: When children interact with peers, they learn valuable communication skills.
Accessibility and affordability issues
Despite the push for lower child care fees and more child care spaces, accessibility remains a challenge in some regions. If you’re in one of Canada’s cities, you might find long waitlists, so it helps to start your search early.
Low-income households might find paying for daycare challenging. Some provinces offer tiered subsidy structures or specific programs for families facing financial difficulties. Keep in mind that immediate affordability improvements may vary depending on local agreements.
Staff shortages and innovative solutions
Staff shortages can impact the availability and quality of child care services. Attracting and retaining early childhood educators has become a nationwide challenge, partially due to salaries and demanding work conditions. To address this, some regions are investing in professional development grants and wage enhancements.
Across Canada, different solutions are starting to emerge, like co-op child care, workplace-based programs, or streamlined licensing for new providers. In some communities, you’ll find that local parents get together to create informal child care resource networks and share responsibilities.
Conclusion
When you begin to look for a suitable daycare option in Canada, consider doing plenty of research into costs, regulations, and personal preferences. If you stay open-minded, it will help you better adapt to changing policies and your child’s evolving needs.
Key takeaways for parents
- Choosing between home-based, centre-based, licensed, or unlicensed care depends on personal preferences, budgets, and local regulations.
- Get to know different prices, licensing rules, and subsidies regulated by provincial and territorial governments.
- Remember that the Canada-wide Early Learning and Child Care Plan is trying to reduce fees and expand availability, but implementation differs among provinces.
Preparing for daycare enrollment
- Check subsidies in your area
- Start looking and enrolling early
- Consider alternative arrangements like part-time care
- Ask questions to clarify fees and details
Future of daycare in Canada
As more provinces sign up for federal government funding, you should expect to see new child care programs and expansions in existing centres. For newcomers, it’s useful to find out about ongoing efforts to such as boosting educator training and introducing innovative models. These changes could mean more affordable, high-quality options in the years ahead.
FAQs
How does daycare in Canada work?
Canada’s child care system is decentralized, with provincial and territorial governments overseeing licensing, standards, and costs. Many newcomers choose between home-based or centre-based care, which can be regulated or unlicensed. Fees vary by region, and subsidies may be available.
Who regulates child care in Canada?
Although the federal government sets overarching goals and provides funding, day-to-day regulation and licensing responsibilities rest with each province or territory. This means rules on staff qualifications, ratios, and fees differ across Canada.
What are the challenges with child care in Canada?
The main challenges are affordability, accessibility, and staff shortages. Waitlists and limited funding still pose barriers for parents, but federal and provincial initiatives are trying to reduce child care fees and increase child care spaces.
What industry code is daycare in Canada?
Some for-profit centres might operate under slightly different codes depending on the scope of services. Under the North American Industry Classification System (NAICS), daycare services generally fall under code 6244 (Child Day-Care Services).