Ottawa daycare operators say $10/day program not working, warning of closures
Cheaper daycare was one of the Liberal government’s biggest promises, but now the program is struggling, with daycare operators warning of closures if things don’t change.
- Sign up now for our daily CTV News Ottawa newsletters
- The information you need to know, sent directly to you: Download the CTV News App
Saba Al-Odeh is the owner of Little Heroes Daycare Centre in Ottawa and says it’s been an uphill battle ever since opting into the $10-a-day program.
"I don’t get a profit, we are not even breaking even," Al-Odeh said. "The prices don’t reflect the expenses we are having at this moment."
The program was part of the Liberal government's 2021 budget, offering a $30-billion, five-year offer to provinces and territories that signed agreements to deliver child care that would first cut fees in half, then cut them to $10 a day by 2025-26.
Al-Odeh signed on to the program in 2022 and under the agreement, froze fees for families. But as her expenses go up, funding has stayed about the same.
"How can I afford to pay my employees, how can I pay the company's tissue paper or food?" Al-Odeh said.
Unable to raise fees, she’s forced to cut costs or risk closing her doors altogether – and she’s not alone.
"You hear people say 'anyone want supplies, we’re shutting down,' so all of these options that used to be available to parents are starting to disappear," said Jacqueline Grisé Jones, a member of the Ontario Association of Independent Child Care Centres.
The program leaves municipalities in charge of doling out funding, seemingly without any oversight.
"Each municipality has the right to change the way they do things with almost no notice," said Grisé Jones. "I really do think the idea of this program is fantastic, but it’s not working and it was never set up to work in its current format."
The City of Ottawa did not agree to an interview, but tells CTV News in a statement, "To support providers, in 2024, the province has provided an inflationary increase of 2.1 per cent. Many providers find this insufficient and worry about the impact on their participation in the CWELCC system. The Province has provided Ottawa one-time funding of $5.9 million for emerging issues. The City is currently developing a fair and transparent process to allocate these funds to providers who demonstrate that their revenue for eligible spaces is insufficient."
The government of Ontario says it’s updating the funding model which hasn’t changed since the program started.
"The model that we had previously was revenue replacement, so this year going forward, we’re working on a new funding formula that will address more of what our operators need," said Patrice Barnes, a parliamentary assistant to Ontario's Minister of Education.
The province did not specify a timeline on when those changes would roll out.
For Al-Odeh, opting out of the $10-day program is a last resort, but she says she’s running out of options.
"The reason why I don’t want to opt out of the program is I don’t want to add more financial stress to my families," Al-Odeh said.
Must Watch
Top Videos
CTVNews.ca Top Stories
Canada closes 'flagpoling' loophole for temporary visa holders
Temporary residents of Canada will no longer be able to utilise the flagpoling process to initiate work or study permits, following a ban from the Canada Border Services Agency.
Kieran Culkin, 'Shōgun,' Ali Wong win at Golden Globes
The Golden Globes, which host Nikki Glaser introduced as “Ozempic's biggest night,” got underway Sunday with awards spread around for “Emilia Pérez," “A Real Pain," and “Conclave," as Hollywood's thus-far unpredictable awards season remained hard to pin in the early going.
Driver who entered Canada 'without stopping' at B.C. border crossing arrested: police
A man who illegally blew through the Canada-U.S. border crossing in Surrey, B.C., Sunday morning has been arrested, according to authorities.
'Absolutely devastating': Southern Manitoba golf course clubhouse burns for second time in 4 years
A golf course clubhouse in Morden, Man. went up in flames Sunday for the second time in less than four years, and mere days after its reopening from the previous fire was celebrated.
Thousands are without power due to winter storm hitting Newfoundland and Labrador
Massive waves slammed Newfoundland and Labrador's coastline on Sunday, as a powerful winter storm left thousands without power.
Man responsible for New Year's truck attack previously visited New Orleans, Ontario, Egypt: FBI
The man responsible for the truck attack in New Orleans on New Year's Day that killed 14 people visited the city twice before and recorded video of the French Quarter with hands-free glasses, an FBI official said Sunday.
The Vivienne, star of 'RuPaul's Drag Race UK', dies at 32
British reality show 'RuPaul's Drag Race UK' winner James Lee Williams, aged 32, popularly known as The Vivienne, has died.
Driving into Manhattan? That'll cost you, as new congestion toll starts Sunday
New York’s new toll for drivers entering the center of Manhattan debuted Sunday, meaning many people will pay US$9 to access its busiest part in peak hours.
WATCH Woman critically injured in explosive Ottawa crash caught on camera
Dashcam footage sent to CTV News shows a vehicle travelling at a high rate of speed in the wrong direction before striking and damaging a hydro pole.