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My Submission to the Standing Committee on Finance, 2026

The House of Commons Standing Committee on Finance has been taking pre-budget submissions from whoever wants to contribute. I chose, unsurprisingly, to focus on funding child care, especially child care in Ontario. Here’s what I wrote: RECOMMENDATIONS TOPICS The benefits of universal child care Much has been written about the benefits of universal child care.  Two recent papers are especially important.   The first is by economists Michael Baker, Johnathan Gruber and Kevin Milligan.[1] They analyze universal child care in Quebec to show that: The second paper, again analyzing universal child care in Quebec, is by economists Montpetit, Carrer and …

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Child Care Investments Really Do Pay Off

Economists Michael Baker, Johnathan Gruber and Kevin Milligan have just produced a remarkably important research study.  We all know about the studies (here, here and here) that show that Quebec’s $5 a day child care had really significant positive impacts on women’s labour force participation.   The employment rate of Quebec women went from substantially below the rest of Canada to substantially above.  The fixed, predictable parent fee removed a major barrier to mothers’ employment. And Pierre Fortin and his colleagues (here) have given us good reason to believe that these increases in women’s employment generated by predictable parent fees brought …

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A Plea to Mark Carney and Provincial/Territorial Governments

Relying on the private sector can make sense in competitive markets.  The selfish pursuit of profit is counterbalanced by the force of competition, so that results may be socially positive. But some pursuits don’t work well when dominated by private interests; early learning and child care is one of them.  The counterbalance of competition isn’t there and guardrails need to be established to ensure socially positive results.  Child care in Canada already has substantial amounts of for-profit child care – more than half of the providers in a majority of provinces are commercial operators.  The Canada-Wide Early Learning and Child …

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EVALUATING ONTARIO’S IMPLEMENTATION OF THE CANADA-WIDE EARLY LEARNING AND CHILD CARE PROGRAM

On December 3rd, I sponsored a small webinar providing an assessment of how Ontario -the province I live in – is doing in the implementation of the Canada-Wide Early Learning and Child Care program (CWELCC). It’s a bit of a misnomer to call it “Canada-Wide” because every province and territory is implementing this program differently.  Some are making good progress, others not.  So, I wanted to figure out for myself how I would judge Ontario’s efforts so far.   I sent out two slide decks to participants.  The first reviews the basic regulations and the structure and responsibilities of institutions responsible …

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PARENT-ONLY CARE AND CHILD CARE ATTENDANCE BY CHILD’S AGE

56% of children 0-5 years of age across Canada use some form of non-parental child care on a regular basis. This is the finding of a large parent survey – Statistics Canada’s 2023 Canadian Survey on Early Learning and Child Care. However, nearly 980,000  or 44% – are cared for exclusively by their parents. This seems surprising to many, and apparently contrary to the notion that families need child care when their children are young.  However, when the data are looked at more closely, some of the reasons become clear.  In the first year, or sometimes the first eighteen months …

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HOW MANY CHILDREN ARE USING LICENSED CHILD CARE?

According to recent data, 938,200 children are regularly attending licensed or regulated child care services across Canada (not including the Territories).  That is about 42% of Canada’s children 0-5 years of age who used licensed child care as their main care arrangement in 2023.  A much smaller proportion of these young children (6.8% and 7.4%) respectively) are using unlicensed child care provided by a non-relative or care by a relative as their main arrangement. The data comes from Statistics Canada ‘s Canadian Survey of Early Learning and Child Care, which collected data about child care arrangements from nearly 30,000 parents …

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How is CWELCC Doing? A Response to Peter Jon Mitchell

This week in the Hill Times, Peter Jon Mitchell says he wants to get rid of the $10 a day federal child care program.  But too many families now love it and depend on the increased child care affordability that has made their lives better.  So instead Peter Jon argues that the Canada Child Benefit or the Child Care Expense Deduction should be amended to provide child care assistance to those who can’t find child care.  But neither solution would be much help.  The Canada Child Benefit goes to nearly every family independent of whether they want to use any …

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    8 things to know about $10-a-day child care

By Martha Friendly, Executive Director, Childcare Resource and Research Unit, and Gordon Cleveland, Associate Professor of Economics Emeritus, University of Toronto Scarborough In 2023, 177,900 more 0-5 year olds were reported by Statistics Canada to be in child care centres than at the end of 2020 just before the $10-a-day program began.  938,000 children are using licensed child care that is eligible for the $10 a day program, according to 2023 Statistics Canada. If we add four and five year olds in kindergarten, and children at home with parents on parental leave, a total of 1.5 million young children are …

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Does Tax Credit Funding Work for Child Care?:  Lessons from Australia

Many Canadians do not seem to realize that funding child care with tax credits would mean having no control over child care fees.  Plus, there would be no financial accountability by operators for the public money they receive.  Right now, child care fees are controlled in Canada – in eight of Canada’s thirteen jurisdictions, the fee is $10 a day.  By April 2026, parent fees will be limited to $10 a day across the country.  If we switched to tax credits (as the Conservative Party recommended in the last election), there would be no limitation on parent fees and no …

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Is Minister Jones Going To Take Away Your Affordable Child Care?

It’s Family Day in Alberta today (February 17th).  And Matt Jones, Minister responsible for child care in Alberta,  apparently wants to celebrate by making plans to leave the child care agreement  that will bring $15 a day child care to the province on April 1st.  And he wants to blame the federal government while he does it.  But the truth is, most decisions about child care in Alberta are entirely in the hands of the provincial government. Take the cancellation January 30th of Alberta’s child care subsidy program that helps low-income families.  Matt Jones cancelled it, as part of the …

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