Daycare Costs in Ontario (2024–2025)

Parents and guardians in Ontario have seen significant changes in child care costs over the past two years. With the introduction of the Canada-Wide Early Learning and Child Care (CWELCC) system, fees for children under 6 have been dramatically reduced, and further cuts are on the horizon. This report provides a detailed overview of current daycare costs in Ontario (2024 – 2025), the types of child care available, typical fees in each category, and financial support programs that can help families afford quality care. We also highlight additional fees and charges to watch for when budgeting for child care.

The Impact of the CWELCC $10‑a‑Day Child Care System

Canada-Wide Early Learning and Child Care (CWELCC) is a federal – provincial initiative aiming to make licensed child care affordable for all families. Ontario joined the national plan in March 2022, signing a five-year agreement. Under CWELCC, Ontario committed to steadily reducing parent fees for licensed child care for children under age 6, targeting an average of $10 per day by March 2026. This ambitious goal is backed by over $10 billion in federal funding and additional provincial investment in the early years sector.

Progress so far: Fees have already been cut by more than half on average. In 2022, participating child care operators issued rebates and fee reductions totaling 50% off 2020 fee levels. As of January 1, 2025, most Ontario daycares enrolled in CWELCC have their fees capped at $22 per day for each child under 6. In practice, that means parents pay at most $22 for a full day of care that used to cost double or more. This new $22/day cap is expected to save Ontario families nearly $300 million in 2025 alone. By this point, fees in CWELCC programs are about 59% lower than they were in 2020 on average. The province reports that this cap brings the provincial average fee down to about $19/day as many centres were already charging less than $22 after earlier reductions.

Path to $10/day: The next major reduction will occur by 2026. Ontario plans to lower fees for eligible children to an average of $10 a day by March 2026 in CWELCC-enrolled programs. This does not necessarily mean every parent will pay exactly $10 (some may pay a bit more or less), but $10 is the target average. Achieving this will likely involve continued government funding to offset the remaining portion of fees. Ontario’s mid-term review of CWELCC has noted that additional federal funding and flexibility may be required to make $10-per-day sustainable long-term.

How CWELCC works: Licensed child care providers (centres or home agencies) choose whether to “opt in” to the CWELCC system. If they participate, they receive government funding to reduce and cap the fees charged to parents. Participation has been very high – about 92% of Ontario’s licensed child care providers have joined the $10/day program. This means the vast majority of daycares and licensed home child care agencies are offering the reduced fees. Parents do not need to apply for CWELCC discounts themselves; the fee reductions are applied automatically by providers enrolled in the program. If your child is under 6 (or is 5 turning 6 before June 30 of the current year) and in a CWELCC-enrolled daycare, you automatically pay the reduced rate.

Space creation and expansion: Along with cutting fees, CWELCC is funding the expansion of child care availability. Ontario plans to create 86,000 new licensed child care spaces by 2026 (relative to 2019) to meet increased demand. By the end of 2022, about 33,000 of those spaces had already been opened, with ~53,000 more to go. The province is providing grants and a new cost-based funding formula to help operators expand while remaining viable. Ontario has also advocated for lifting the federal cap on for-profit child care growth to allow all sectors (non-profit and for-profit) to contribute to new space creation. Importantly, full-day kindergarten for 4- and 5-year-olds (which Ontario funds separately) continues alongside CWELCC, providing additional low-cost early learning spots for that age group.

In summary, the CWELCC system has already made child care far more affordable for parents of young children. As of 2024 – 2025, a parent with a toddler in a participating licensed daycare pays around $20 a day, down from $50+ just two years ago. Further fee reductions are expected, moving toward an average of $10/day by 2026. Most licensed providers are on board, so chances are that child care you find will offer CWELCC rates – but it’s always wise to confirm a provider’s status. Next, we’ll break down the types of child care and the current costs in each category, including both CWELCC and non-CWELCC situations.

Types of Child Care in Ontario

Ontario’s child care landscape includes several options to suit different needs. The three main categories are licensed child care centres, licensed home child care, and unlicensed home child care. It’s important to understand the distinctions, as they affect the quality standards, availability of fee reductions, and potential costs.

Licensed Child Care Centres

Licensed child care centres are formal daycare facilities (nurseries, daycare centres, preschools, etc.) that care for children in group settings. They are regulated by the Ministry of Education under the Child Care and Early Years Act (CCEYA) and must meet strict provincial standards for health, safety, and educator qualifications. Centres are inspected annually and must post their license where parents can see it. These programs typically serve various age groups:

• Infants (younger than 18 months) – usually higher staff-to-child ratio (e.g. 1 adult per 3 infants in Ontario).
• Toddlers (around 18 – 30 months).
• Preschoolers (2.5 years up to 4 years).
• Kindergarten-age (4 – 5 years, often in before/after school programs since 4 – 5 year-olds may attend full-day kindergarten).
• School-age children (6 – 12 years, in before/after school or camps).

Licensed centres operate in dedicated spaces such as daycare buildings, schools, or community centres. They often run full-day programs (e.g. 7:00 AM – 6:00 PM) on weekdays year-round, and some offer part-time schedules or half-day nursery school programs. Staff are usually trained Registered Early Childhood Educators (RECEs) or equivalent, and the centres must adhere to regulated staff-to-child ratios and curricular/programming standards that support child development.

Because of the regulated environment and staffing, licensed centres tended (before CWELCC) to be the most expensive option for child care. However, licensed centres are eligible for CWELCC, and the vast majority have enrolled, meaning fees at these centres for under-6 care are now dramatically lower (see the Cost section below). Licensed centres also generally allow families to use the Ontario fee subsidy if eligible.

Licensed Home Child Care

Licensed home child care is care offered in a provider’s private home, operating under the supervision of a licensed home child care agency. In Ontario, individual home daycare providers are not directly licensed by the ministry. Instead, an agency is licensed, and it contracts approved home care providers in the community. The agency screens the caregiver, ensures their home meets safety standards, and monitors the care (including regular home inspections and training).

A licensed home caregiver typically cares for a small number of children of various ages. By law, a home caregiver (licensed through an agency) can care for up to 6 children under age 13, with limits on the number of young children in the group (e.g. no more than 3 children under 2 years old, and the provider’s own children count if under age 4). This allows slightly more children than an unlicensed setting, but the agency oversight and mixed-age ratios ensure safety. In practice, many licensed homes might have 3 – 5 children at a time, providing a family-like environment.

Licensed home child care can be a good option for those who prefer a smaller, home setting or need more flexible hours. Some home providers may offer extended hours, evenings, or weekends, though not all do. These providers can choose to participate in CWELCC as well (through their agency). In fact, many licensed home child care agencies have opted into CWELCC, meaning families can get the same fee reductions ($22/day cap for under-6) in licensed home settings as in centres. The costs for licensed home care are often a bit lower than centre care (even before CWELCC), due to lower overhead, but with CWELCC the differences have narrowed. Families can also use the fee subsidy in licensed home care if they qualify.

Unlicensed Home Child Care (Informal Care)

Unlicensed home child care refers to caregivers who operate privately, without oversight by a licensed agency. This could be a nanny or babysitter caring for children in the family’s home, or more commonly, a person providing daycare in their own home to a few children, but without a provincial license. By law, unlicensed home caregivers cannot care for more than 5 children under the age of 6 (and that count includes the provider’s own children under 6). There is also a limit of 3 children under 2 years old in an unlicensed home. These legal limits are meant to ensure no unlicensed caregiver has an unsafe number of young children; violation of these limits can result in penalties. The Ministry of Education does not routinely inspect or monitor unlicensed providers, but they will investigate if a complaint is made (for example, a report that too many children are being cared for, or of unsafe conditions). A list of violations and convictions against unlicensed daycares is published by the ministry to inform the public.

Unlicensed home child care is often arranged through word-of-mouth or online classifieds. Many families turn to unlicensed caregivers when they cannot find a licensed space or if the caregiver is someone they know and trust. There are no standard educational requirements for unlicensed providers (unlike licensed centres/homes that often require ECE training or agency approval), so quality and services can vary widely. Some unlicensed providers are experienced caregivers offering excellent care; others may have fewer resources. No CWELCC funding or fee subsidy can be used in unlicensed care – it is a private pay arrangement only.

Pros and cons: Unlicensed care may offer more flexibility (in hours, accepting infants on short notice, etc.) and sometimes a lower price than licensed programs, since the provider doesn’t have to meet the administrative standards. However, families should be diligent in vetting any unlicensed provider, as there is no government supervision of safety, nutrition, or program quality in these settings. Always ensure the caregiver is abiding by the 5-children limit and ask for references from other parents if possible.

In the next section, we’ll look at how much each type of care costs on average in 2024 – 2025, including the effect of CWELCC on licensed care fees. This includes a comparison of fees in CWELCC-enrolled programs vs. non-enrolled, as well as costs for school-age care and unlicensed care.

Current Child Care Costs by Category (2024 – 2025)

Child care fees in Ontario vary by the type of setting and the child’s age. Below is a breakdown of current typical costs in four key categories:

• Licensed care (0 – 5 years) with CWELCC – i.e. daycare programs participating in the $10/day system, serving infants, toddlers, preschoolers, and kindergarten-aged children. These have significantly reduced fees.
• Licensed care (0 – 5 years) not enrolled in CWELCC – a minority of providers who charge full fees (or if CWELCC funding isn’t available for some reason).
• Licensed school-age care (6+ years) – programs for school-aged children (typically before-and-after school care, and camps). Not covered by CWELCC; fees are generally lower than infant/toddler care but still regulated.
• Unlicensed home care – informal arrangements, no regulation or subsidies.

For each, we provide typical daily or monthly fees and note any regional differences (for example, Greater Toronto Area (GTA) vs other regions). Actual fees can vary, so these are averages or ranges. The table below summarizes the comparisons, followed by more detail and examples:

Type of Care	Typical Parent Fees (2024 – 25)
Licensed (CWELCC-enrolled) – Under 6	~$20/day on average (capped at $22/day maximum). This equals roughly $400 – $500 per month for full-time care. Example: A Toronto centre charges $22/day, while some smaller-city centres charge ~$17 – $20/day after CWELCC funding.
Licensed (NOT in CWELCC) – Under 6	$50 – $70/day (full fees). Monthly averages were about $1,200 – $1,600 per child before the CWELCC cuts. Examples: An infant spot in Toronto cost ~$1,758/month (≈$84/day) pre-CWELCC; Ottawa was $1,381/month ($66/day). These are the fees parents pay at non-participating providers in 2024.
Licensed School-Age (6 – 12 years)	$15 – $30/day for before/after-school programs (part-day). Full-day care on PA days or summer camps: ~$40 – $60/day. Example: A non-profit program in Durham Region charges about $16.50/day for after-school care of a 6 – 12-year-old, whereas some Toronto after-school programs charge closer to $25 – $30/day (approx. $500/month).
Unlicensed Home Child Care	$35 – $60/day (varies widely). Often $700 – $1,200 per month for full-time informal care. Note: Prices are negotiated privately. In the GTA, $45 – $50/day (~$1000/month) is common for a home daycare; outside urban areas, rates around $30 – $40/day are seen. No caps or subsidies apply, so it depends on the caregiver’s rates.

As the table shows, licensed CWELCC-enrolled care is now by far the most affordable option for children under 6, often costing one-third of what it used to. We’ll now discuss each category in more detail:

• CWELCC-enrolled licensed care (0 – 5 years): If your child is under 6 and in a licensed daycare or home child care that joined CWELCC, you benefit from the new low fees. As of 2024 – 25, you will pay no more than $22 per day for a full day of care, regardless of whether it’s infant or preschool age. In many cases, you may pay less – the $22 is a cap, not a flat rate. Some centres that historically had lower fees will simply apply the mandated percentage reductions. For example, by the end of 2024 fees were reduced by 52.75% from 2020 levels in participating programs. If a preschool program was $40/day in 2020, it would be about $19/day by 2024, which is under the cap. Indeed, the provincial average fee under CWELCC is about $19 per day in early 2025, meaning many families pay a bit under $22. In Toronto and the GTA, where fees were highest, most centres hit the $22/day cap for all age groups (infant, toddler, preschool now all around $22). For instance, the City of Toronto’s child care centres list a $22.00/day fee for infants, toddlers, and preschoolers as of 2025. Outside the GTA, some mid-size cities had moderately lower fees; after the standard reductions, a CWELCC-enrolled centre in Ottawa or London might charge around $18 – $20/day for a toddler. Monthly costs for full-time care under CWELCC typically range ~$400 – $500 (for 20 – 22 care days). By comparison, before this system a Toronto infant spot could cost $1,800+ per month. Parents are seeing substantial savings. It’s also worth noting CWELCC applies equally to licensed home child care agencies – many home providers now charge at or below $22/day for under-6 care as well. (If you use licensed home care, check with the agency; many have set a daily rate of $22 or a bit lower for all ages to comply with CWELCC.) Overall, for any licensed program you are considering, it is highly recommended to choose one that is enrolled in CWELCC, as this will cap your costs at the much lower rate. Nearly all non-profit centres and even most for-profit centres opted in, but a few did not (see next category). If in doubt, ask the provider directly if they are part of the Canada-Wide $10/day system.
• Licensed care (0 – 5) not in CWELCC: A small percentage of providers in Ontario chose not to participate in the CWELCC fee reductions (about 7 – 8% of operators in 2022 did not enroll). These could include some independent for-profit centres or specialty programs (e.g. some Montessori schools or faith-based daycares) that opted out, or possibly new centres that haven’t yet enrolled. If your child attends a licensed program that is not in CWELCC, you will be paying the full “market rate” without the new subsidies. Those fees are generally in line with pre-2022 prices (and may have risen with inflation since). For example, in 2021 the median infant fee in Toronto was around $1,758 per month (roughly $80 – $85/day), and for preschoolers about $1,381/month (about $63/day). Other regions had slightly lower rates (provincial average for preschool around $1,227/month). Parents using a non-CWELCC provider in 2024 can expect similar ranges – it’s not uncommon to see fees of $1,200 – $1,500+ per month for one child depending on age and location. In concrete terms, $60 – $75 per day per child is a typical fee in this scenario (infant care being on the higher end). These costs are roughly 3 times higher than the CWELCC-subsidized rate. Keep in mind that if a CWELCC program loses its funding or opts out, they could revert to these higher fees (some private centres warned they might exit the program if funding formulas didn’t meet their costs, but the government has also stated that centres leaving CWELCC would lose other grants). Always clarify a centre’s status; the vast majority are in the system, but if you encounter one that isn’t, budget for much higher out-of-pocket costs. You may still apply for the provincial fee subsidy (if eligible) at licensed non-CWELCC centres, but the subsidy will be calculated on those high fees and may not cover all of it if your income is moderate (more on subsidies below).
• School-age licensed care (6 – 12 years): Once your child is in school (Grade 1 and up, typically age 6+), full-day daycare is usually no longer needed, but many families use before-and-after school programs during the school year and camps or child care programs during school breaks. These programs are often run by the same organizations (school boards, the YMCA, Boys & Girls Clubs, private after-school programs, etc.) and are licensed in many cases. However, CWELCC does not apply to children aged 6 and up, so these fees are not subject to the $10/day plan. Even so, costs for school-age care tend to be lower than infant/toddler daycare because the care is part-time and staff ratios can be larger (one educator can supervise 10+ school-age children in Ontario, versus 3 infants). For before- and after-school care, parents typically pay a daily or monthly rate for the school year. For example, a program might charge ~$20 per day for after-school (3 hours in the afternoon, including snack and activities). Some programs break it down to morning vs. afternoon: e.g. $12 for before-school (7 – 9 AM) and $18 for after-school (3 – 6 PM). A real example from a licensed non-profit: in Durham Region, a before-and-after school program charges $12.99/day for JK/SK (4 – 5 year olds) and $26.50/day for School Age (6 – 12) for both morning and afternoon together. That works out to ~$500 per month for full-time after-school care. In Toronto, fees can be higher; many school-based programs charge around $300 – $600 per month per child for after-school, depending on hours and whether PD days are included. A national survey found after-school program fees averaging $29 – $42 per day in Canada, which aligns with Ontario’s range. During summer or March Break, if you enroll your child in a licensed camp or full-day program, costs might be on the order of $40 – $60 per day (for example, $200 – $300 per week for day camp). Important: The Ontario Child Care Fee Subsidy can also apply to licensed before/after school programs if the family qualifies, which can greatly reduce these costs for low-income families. Additionally, children aged 4 – 5 in kindergarten are technically eligible for CWELCC until June of the year they turn 6. This means if a 4 or 5-year-old is in a licensed after-school program run by a CWELCC provider, their fees for that child might be reduced (as seen in the Durham example where JK/SK rate was $12/day with CWELCC vs $16+ for older kids). However, many after-school programs don’t distinguish and just charge one rate for all ages; it can vary by provider. Overall, parents should expect significantly lower monthly costs once their child is in school and only needs part-time care, but remember to budget for summer childcare if needed, which can be a few hundred dollars per week for camps unless you secure other arrangements.
• Unlicensed home care: If you are using an unlicensed babysitter or home daycare, there is no standard fee schedule – it is set by the provider and whatever the market will bear. In practice, unlicensed home care can be cheaper than licensed care, but not always by a huge amount. Many providers charge rates similar to (or only slightly below) local licensed home daycares. According to one source, “registered home daycares cost $700 – 1,200 on average” per month in Ontario. An unlicensed provider might charge in that range or maybe a bit less since parents can’t use subsidies or get tax receipts. Commonly, one hears of figures like $40 – $50 per day for a full day in a private home, which is ~$800 – $1000 per month for full-time care. Rates can go lower if the provider is less experienced or in an area with lower demand – e.g. perhaps $30 – $35 a day in a small town – or higher if offering something specialized. Some unlicensed nannies or home caregivers in the GTA could charge $60+ per day, especially if caring for fewer kids or offering pickup/drop-off services. Because these arrangements are private, parents might negotiate a monthly or weekly flat fee. It’s also important to clarify what the fee includes (meals? diapers? etc.). When comparing costs, remember that no CWELCC reduction applies here, so $50/day in unlicensed care is still more expensive out-of-pocket than $20/day in a CWELCC centre. If cost is a concern, you’ll generally save money with a CWELCC-licensed spot if you can find one. Families may choose unlicensed care for other reasons (availability, trust, cultural/language preferences, etc.), but from a cost perspective, it’s typically a middle-ground option: cheaper than the old daycare rates, but in 2025 it may be double the cost of a subsidized CWELCC space.

In summary, Ontario’s move toward $10-a-day child care has mostly equalized costs across regions for licensed under-6 care – bringing big city fees down to small-city levels. The biggest cost differentials now are between those who are in the system (CWELCC) and those who are not. The next section will discuss key factors that can still cause variation in fees and expenses.

Key Factors Affecting Child Care Costs

Even with standardized fee reductions, several factors influence how much a family will pay for child care in Ontario:

• CWELCC Participation: This is the single biggest factor for under-6 care. If your provider is enrolled in CWELCC, your base fees are limited to the new reduced rates. If not, you pay the higher legacy fees. As shown above, the difference is substantial – CWELCC can cut costs by 50 – 75%. Thus, ensuring your daycare participates (or finding one that does) is key to lower costs.
• Location (Region): Child care costs have traditionally been higher in large urban centres (Toronto, Ottawa, GTA suburbs) than in smaller cities or rural areas. This was due to higher operating costs (rent, wages) and demand. Under CWELCC, regional differences in parent fees have shrunk for under-6 care (since everyone is roughly $10 – $22/day). However, for school-age or unlicensed care, you’ll still see differences. For example, an after-school program in downtown Toronto might charge $30/day whereas one in a smaller town might charge $15 – $20/day for similar hours. Likewise, an unlicensed home daycare in an expensive city neighborhood may charge more than one in a less expensive region. The new funding formula Ontario introduced in 2025 does account for regional cost differences by providing operators with adjusted funding based on location, which helps ensure centres in high-cost cities can still operate under the fee cap. But parents should still expect that GTA programs hit the fee cap (because their old fees were well above it), whereas in a lower-cost area the fees after reduction might naturally be a bit under the cap. Location also affects things like availability (waitlists tend to be longer in high-demand urban areas).
• Type of Care/Provider: The structure of the program influences cost. Centre-based care usually had higher fees than home-based care, due to higher staffing levels and facilities costs. This generally remains true, although CWELCC reductions apply to both. For instance, before CWELCC a licensed home daycare might have been, say, $50/day vs. a centre $70/day for an infant. After CWELCC, the home daycare might be $22 (if it was $50 and got cut by ~50%) and the centre also $22 (capped). So in that scenario they equalized at the cap. But if the home program’s reduced rate calculates to $18, it will just charge $18. Thus, some licensed home child care may be a few dollars cheaper per day than a centre for the same age, but the difference is much smaller now than it was. Unlicensed home care might undercut licensed care on price slightly, but one should weigh that against the lack of regulation. Nursery schools (part-day preschools) are licensed but often operate only 2 – 3 hours a day; their fees under CWELCC might be proportionally less (e.g. $10/day for a half-day program). The provider’s auspice (non-profit vs for-profit) used to correlate with cost (for-profits sometimes charged more), but with standard fee reductions, that distinction matters less for what parents pay – though it can affect whether a provider could opt-in (Ontario initially limited expansion of for-profit spaces under CWELCC).
• Age of Child: The child’s age group still plays a role in costs in some contexts. Under CWELCC fee caps, many centres now charge a flat $22 for any under-6 child. But if a provider’s fees were lower for older children, parents of preschoolers might pay a bit less. Generally, infant care is the most expensive (requires the most staff), followed by toddlers, then preschoolers as the least costly. For example, a non-CWELCC centre might charge $70/day for infants, $60 for toddlers, $50 for preschoolers. Under CWELCC, each of those might have been halved to $35, $30, $25 and then capped at $22, so effectively all $22. In a scenario where original fees were lower (say preschool was $40 -> reduced to ~$19), a preschooler’s parents pay less than an infant’s ($22) at that same centre. School-age children generally cost much less per hour (higher ratios permitted), so even without CWELCC, a 6-year-old’s after-school care could be $15/day whereas a 2-year-old’s full-day care was $50+. Age also matters for subsidy calculations (subsidy is available up to age 12, but priority is often for younger kids). In unlicensed care, a provider might charge more for infants (since they can only take one or two under 2 by law) and give a slight break for older kids, but it’s at their discretion.
• Hours of care needed: The number of hours or days per week you need child care affects cost. Most centres have a full-time monthly or daily rate. If you only need part-time (e.g. 3 days a week or half-days), some will offer pro-rated fees, but others might not, especially under CWELCC (some centres prioritize full-time spots). Home daycares might be more flexible with part-time arrangements. Many providers charge a full-day rate regardless of whether you pick up early. Extended hours (beyond the standard 9-10 hour day) could incur extra fees – for example, some home caregivers charge an “extended hours” rate if care exceeds 9 hours a day. Late pick-up beyond their closing time almost always results in penalty fees (discussed later). For school-age kids, needing both before and after school care will cost more (~double) than just after-school. If you need summer coverage, you’ll have to budget for day camps or daycare during those months, which is a separate cost from the school-year aftercare.
• Included Services and Extras: What the child care provides as part of the fee can affect value. Some programs include meals and snacks, diapers, formula for infants, etc., whereas others might require parents to supply these. A centre that provides catered lunch might have higher fees than one where parents pack a lunch, though under CWELCC both end up at the cap if they were high to start with. Additional programs can also affect cost – e.g. a daycare that offers extracurricular activities like dance or language classes might charge extra for those. Some high-end centres (pre-CWELCC) charged premium rates because they offered enrichments (technology, organic meals, etc.); under the new system, they cannot charge more than the cap for base service, but they might levy optional fees for extra activities. Vacation policies also matter: most centres still charge you for days your child is absent (you’re paying for the spot), so if you take a month off, you might still pay to hold your spot. This isn’t a different price per se, but it means your effective cost per day of use can be higher if you don’t use all the days (no refunds for sick days or holidays is common). Some home caregivers might only charge for days actually used or allow some unpaid vacation time – it varies.

In essence, while the sticker price for licensed child care is now largely controlled by CWELCC for young children, families’ total child care expenses will still depend on their work schedules, the ages and number of children, and the specific provider’s offerings. Always inquire with a prospective provider about what’s included in the fee, part-time options, and any extra charges. And remember that financial assistance programs can further reduce what you pay, which we’ll cover next.

Ontario’s Child Care Fee Subsidy Program

Ontario’s Child Care Fee Subsidy is a longstanding program designed to help lower-income families afford licensed child care. It predates CWELCC and continues to operate alongside it. The subsidy is income-tested and can cover a portion or all of a child’s daycare costs (for children up to age 12) at licensed facilities or approved recreation programs.

How the subsidy works: The subsidy is administered locally by Consolidated Municipal Service Managers (CMSMs) or District Social Services Administration Boards (DSSABs) – essentially your regional or city government. Parents must apply through their local region (for example, Toronto Children’s Services, Peel Region, York Region, etc.). Generally, you provide proof of income (tax notices of assessment) and information on your child care needs (e.g. you are working, studying, or searching for work and need care). There may be a waitlist in some high-demand areas, as funding is limited.

Eligibility: You must have a child enrolled in a licensed child care program (or be in the process of securing a spot) to use the subsidy. The child can be infant through 12 years (under 13), or up to 18 if the child has special needs. Both parents (if in a two-parent family) typically need to be employed, in school, or in an employment program, OR have special circumstances (such as medical needs) that require child care. The primary factor, however, is family income. Ontario uses adjusted net family income (essentially line 23600 of your tax return, with some exclusions) to determine how much you can contribute to fees.

• Families with very low income may pay nothing: for an adjusted annual income up to $20,000, you are eligible for a full subsidy (the government covers the full daycare fee). In other words, if your family’s net income is $20K or below, you shouldn’t have to pay any child care costs at licensed providers – the subsidy would pay the provider’s fees.
• For incomes above that, Ontario uses a sliding scale to calculate the parental contribution:
  • Approximately 10% of income over $20,000 up to $40,000, and 30% of income over $40,000 is expected to be contributed by the family. This formula can sound confusing, but essentially as your income rises, you pay a portion of the childcare cost. There is a cap such that at a certain high income, your expected contribution equals the full fee, meaning you no longer receive a subsidy.

To illustrate, here are some examples of the approximate daily parent contribution by income level (as per Ontario’s subsidy guidelines):

• At $20,000/year income, contribution is $0 (full subsidy).
• At $30,000 income, about $3.83/day per family.
• At $40,000 income, about $7.66/day.
• At $50,000 income, roughly $19.16/day.
• At $60,000 income, roughly $30.67/day.
• At $70,000 income, about $42/day.
• At $80,000 income, about $53.65/day.
• At $90,000 income, about $65/day.
• At $100,000 income, about $76.63/day.

These figures represent what the family as a whole is expected to contribute for child care, regardless of number of children (the subsidy can cover multiple kids, and your contribution doesn’t double if you have two kids; instead, the subsidy splits it among them). If your child care costs exceed your calculated contribution, the subsidy covers the rest. If your required contribution is equal to or more than the fees, you effectively don’t get a subsidy because the expectation is you can afford the cost.

Interplay with CWELCC: Now that fees for under-6 are lower, some families that used to get partial subsidies may find they no longer need them or qualify for them. For instance, at $60k income, your expected contribution is ~$30.67/day. If your child’s CWELCC daycare only charges $22/day, you wouldn’t qualify for a subsidy because you are deemed able to pay $30/day. In contrast, a family at $50k income (expected ~$19/day) could get a small subsidy that brings their cost from $22 down to ~$19 (the subsidy would pay the difference of ~$3). Lower-income families still benefit greatly: e.g. at $30k income (contribute $3.83/day), the subsidy would reduce a $22/day fee to under $4. Effectively, the subsidy can bring your cost to zero or a minimal amount if your income is low enough. The CWELCC reduces baseline fees for everyone, but the subsidy ensures that those with the least means pay proportionately even less. Notably, subsidies can also be applied to non-CWELCC licensed care and to school-age care. So if you have a school-age child in after-school care at $20/day and your income is low, the subsidy could cover that too.

How to apply: To pursue a child care fee subsidy, you should contact your municipal or regional Children’s Services office. The Ontario government directs parents to apply through their local CMSM/DSSAB or First Nations administrator. Many regions have an online application or intake phone line. For example, City of Toronto has an online subsidy application portal; other regions like Peel, York, etc., have their own processes. You will need to provide documentation like proof of income (tax Notice of Assessment for each parent) and perhaps proof of activity (work/school enrollment). There may also be an in-person or phone interview. Once approved, you’ll be placed on a subsidy waitlist if no immediate funding is available, or you’ll be matched to your chosen licensed child care. The subsidy is paid directly to the provider – you then only pay your assessed portion. Keep in mind you must report changes (income, employment status) as it could change your contribution.

Availability: The demand for subsidies can exceed supply. Some regions prioritize families with the greatest need (lowest income, single parents, those in school or training, etc.). If you are on Ontario Works or ODSP (social assistance), you may be fast-tracked for a full subsidy as part of those programs. Check with your local office about wait times. The Ontario budget does fund subsidies alongside CWELCC, but the overall lower fees may reduce the number of families needing subsidy to some extent.

In summary, Ontario’s fee subsidy is a critical support if you have a low or modest income – it can further reduce the already lowered CWELCC fees or help with full fees if you’re at a non-participating provider or for school-age care. Always apply if you think you might qualify; there’s no harm in applying and the threshold for partial subsidy is higher than many expect (even some families earning $70 – $80k could get a partial subsidy, though small). The combination of CWELCC and the subsidy means many families are now paying very little for child care, enabling parents to work or study without crippling costs.

Other Financial Benefits for Families

Beyond subsidies and CWELCC, families in Ontario can receive general child benefit payments that, while not specific to daycare, can help offset the costs of raising children (including child care expenses). Two key benefits are the Canada Child Benefit (CCB) and the Ontario Child Benefit (OCB):

• Canada Child Benefit (CCB): This is a federal benefit provided to virtually all families with children under 18, with the amount based on family income. It is a tax-free monthly payment. For the July 2024 – June 2025 benefit year, a family can receive up to $7,787 per year for each child under 6, and up to $6,570 per year for each child aged 6 – 17 (these maximum amounts go to families with very low incomes). The CCB starts to phase out once family net income exceeds about $36,500, and the rate of reduction increases at higher incomes. However, even many middle-income families receive some CCB. For example, a family earning $90k with two young children might still receive a few hundred dollars a month. The CCB is indexed to inflation and adjusted annually each July. Importantly, you do not need to apply separately for CCB if you registered your child’s birth and filed taxes – it’s generally automatic when you file your income tax (ensure you and your spouse/partner file taxes every year to assess eligibility). The CCB is intended to help with any costs of raising children – you can use it for daycare, groceries, clothing, etc. In effect, it can offset part of your child care budget: e.g. $500/month from CCB could cover a $22/day CWELCC fee entirely. Almost all families with young kids will be receiving this benefit monthly, so factor it into your finances.
• Ontario Child Benefit (OCB): The OCB is a provincial program that piggybacks on the CCB delivery. It provides additional support to low- and moderate-income families in Ontario. The OCB is also paid monthly (combined with your CCB payment). For the period July 2024 – June 2025, eligible families can receive up to $140 per month, per child under 18 from the OCB. The maximum OCB (which is $1,680 annually) is for those with very low incomes; it starts phasing out when the family net income exceeds about $25,646. For example, a family earning below $20k will get the full $140/month per child; at $30k they might get a partial amount; at say $50k income, they likely no longer receive OCB. Like the CCB, you don’t separately apply – your tax return info is used to calculate it and it’s automatically added to your monthly CCB if you qualify. The OCB is funded by Ontario to further help with child costs. If you are a low-income family, the OCB plus CCB together can be quite significant. (For instance, a family with two young kids and very low income could get over $1,000/month combined CCB+OCB).

These benefits mean that on top of reduced daycare fees, families receive direct income support for children. For those with low incomes who qualify for full subsidy, often the scenario is that child care is fully paid by subsidy, and CCB/OCB can be used for other needs (or to cover care by relatives or unlicensed care if that’s being used, since subsidy can’t be used there but you could use your CCB money to pay a relative, for instance).

Additionally, it’s worth noting: the federal Child Care Expense Deduction is another mechanism – parents who pay for child care can claim up to $8,000 per child under 7 (and up to $5,000 for ages 7 – 16) as a deduction on their income tax, which can result in tax savings. However, with $10-a-day child care, many families’ annual daycare expenses might drop below those limits. Still, if you pay any significant child care fees (including summer camps for kids under 16), save your receipts and claim the deduction at tax time. The deduction is separate from CCB and OCB and provides a bit of tax relief, particularly for higher earners. (Keep in mind you can only claim what you actually paid; if you receive a subsidy, you claim only your portion.)

In short, Ontario and Canada provide a mix of upfront fee reductions, subsidies, and direct income supports to make child-rearing more affordable. By 2025, a low-income parent with a young child might have a scenario like: daycare fee = $22/day, minus subsidy = $0, plus CCB/OCB ~$500/month given to them. This represents a dramatic improvement in affordability compared to a few years ago. Families should ensure they are receiving all benefits they’re entitled to by filing taxes and applying for subsidies if eligible.

Additional Fees and Charges to Consider

When budgeting for child care, it’s not just the daily rate you should consider. Many child care providers have additional fees or policies that can affect your out-of-pocket costs. Here are some common extra fees and charges in Ontario daycares and what they mean:

• Registration or Enrollment Fee: Most licensed daycares (and some home daycares) charge a one-time registration fee when you accept a spot. This covers administrative costs or simply acts as a deposit. For example, a centre might require a non-refundable fee of $40 – $100 upon registration. Under CWELCC, if that fee is considered part of “base fees,” some centres have pro-rated it (as seen in one Toronto centre: $40 registration became $18.90 after CWELCC discount). Either way, expect an upfront charge when you enroll. Additionally, many will ask for a security deposit – often equal to one or two weeks of fees (or a flat amount like $200). The deposit is usually held and then applied to your last two weeks of care or refunded when you leave, provided you give proper notice and no fees are owing. Be prepared to put down this deposit; it can be a few hundred dollars but you get it back at the end if all goes well.
• Late Pickup Fees: Virtually all child care providers have strict pickup times. If you arrive past closing (or past your agreed time for a home caregiver), there will likely be a per-minute late fee. A common policy is something like $1 per minute late, often with a slightly higher charge for the first 5 minutes. For example, a centre might charge $2 per minute for the first 5 minutes, then $1 for each additional minute. These fees are often payable directly to the educator who had to stay late. Late fees can add up quickly (15 minutes late could cost $15 – $20). Some centres even escalate the fee for repeated lateness or will remove your child from the program if tardiness is chronic. Tip: Always have a backup plan (friend or family) who can pick up your child if you’re running late, to avoid these fees (and the stress on staff and child).
• Absent Day Policy: Most licensed programs will charge you for all days your child is enrolled, regardless of attendance. This means if your child is home sick or you go on vacation for a week, you still pay for that slot (since the centre has fixed costs and is holding the spot). Some home daycares might be a bit more lenient, but it’s typical that you get a certain number of “vacation days” where you don’t pay, and beyond that you do pay even if absent. Likewise, if the centre is closed for holidays (stat holidays, maybe a week at Christmas, etc.), many still charge for those closed days as they are part of the annual budget. However, CWELCC funding does not cover things like late fees, deposits, or optional services – those you pay out of pocket. When planning, ask the provider for their calendar: you might be paying for ~10 stat holidays a year when the centre is closed (common ones are New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving, Christmas, Boxing Day – and possibly Easter Monday as a “professional development day” closure). Some centres charge for all stat holidays, others might not charge for one or two of them; policies vary.
• Supplies and Miscellaneous Fees: Some centres include all supplies (wipes, sunscreen, etc.), and others will give you a list of items to provide (like a blanket, change of clothes, diapers, cream). Occasionally, a centre might have a small annual fee for supplies or ask parents to chip in for things like craft materials. These aren’t usually large costs, but check the parent handbook. Field trips or special events can incur fees too – for example, if the daycare is taking the kids on a trip to the farm, they might ask for $10 to cover the bus, or if an entertainer comes in, a small fee. These are typically optional (you could opt not to send your child that day, etc., but practically if it’s a regular day you’ll likely partake).
• Optional Extended Services: If a program offers optional services like catering for infants (some will provide formula or baby food for an extra charge) or extras like photography, extracurricular classes (e.g. soccer, music), these might come with separate fees. For instance, a daycare might have an optional music class weekly for $15/month extra. Since CWELCC only covers “base fees,” providers are allowed to charge for non-base services as long as they’re truly optional and not a condition of enrollment. They must disclose these. Check the contract for any listed optional fees (sometimes called “non-base fees” in CWELCC terms). Examples could include: transportation fees (if the daycare buses children to school), extra hours beyond the standard, or premium services.
• Fee Increases and Notice: Under CWELCC, base fees for under-6 are largely frozen except for when reductions occur, but for school-age or non-CWELCC fees, providers might increase fees annually. You should receive advance notice (often 30 days or more) of any fee increase. In the current environment, if you’re in CWELCC, your fees shouldn’t increase (and in fact should decrease or cap at $10 eventually) – any attempt to raise base fees is generally not permitted for CWELCC-enrolled age groups. However, school-age program fees could go up year to year with inflation. Always read any communication from your provider about fee changes.
• Deposit Refund Conditions: As mentioned, you usually get your deposit back when you leave, but only if you give sufficient notice (often 1 month notice required). If you pull your child out without notice or in breach of contract, the deposit can be forfeited. Also, if you have any outstanding fees or late charges, the deposit might be applied to those instead of returned.
• Withdrawals and Vacation Holds: Some centres allow you to temporarily withdraw for a month or two (say you have maternity leave for a new baby and pull your toddler out for the summer) but often they will not hold your spot unless you continue paying at least part of the fee. Few centres allow “holding fees” (maybe paying 50% to keep the spot). Most will require full fee or will give the spot to someone else. So, if you plan to take an extended leave from needing care, you may have to relinquish your spot or pay to keep it.

In any child care arrangement, get all the fee policies in writing. The parent handbook or fee schedule should outline these extra charges. Don’t be afraid to ask questions like: “What happens if I’m late for pickup?” “Do I still pay when my child is sick?” “Is there a charge to be on the waitlist?” (some private centres had waitlist fees in the past, though many stopped that practice). Knowing these details helps avoid unpleasant surprises. For instance, some parents only discover late fees after their first late pickup – but a typical policy could be “$1 per minute, payable immediately to staff”, which is enforceable.

Finally, consider backup care costs: Even the best plans can fall through if your child is sick and can’t attend daycare (most centres have illness policies requiring kids to stay home if fever, vomiting, etc.). You might occasionally need to hire a babysitter or take unpaid leave. While not a fee of the daycare, these are ancillary costs to account for in your overall child care budget.

Bottom Line: Child care in Ontario has become much more affordable in 2024 – 2025 due to government initiatives. For children under 6 in licensed care, the new fee structure ($20 – $22 a day in most cases) and the goal of $10/day by 2026 are a game-changer for family finances. Parents should leverage all available supports: CWELCC-reduced fees, income-tested subsidies if eligible, and child benefits like CCB/OCB. When searching for child care, inquire about the provider’s CWELCC status and all fees. Compare the types of care that meet your needs (centre vs home, licensed vs not) not just on base price but also quality and convenience. With careful planning and use of subsidies, many Ontario families will find that quality child care is no longer the crushing expense it once was, allowing parents and children alike to benefit from early learning and care opportunities.