Why Toronto Daycare Fees Keep Rising – And 9 Smart Ways to Save

Toronto parents are feeling the squeeze of rising daycare costs. Recent news reports and government data show that child care fees have been changing rapidly – and not always in the way families expect. In fact, while a new $10-a-day child care plan is bringing fees down for many, some parents are still facing increases. This article breaks down why daycare fees are increasing in certain cases, how it impacts your family, and what you can do to navigate these changes. Throughout, we’ll also highlight how a trusted centre like Cozytime daycare can save you money and provide an easy, hassle-free child care experience for your family.

Why Are Toronto Daycare Fees Rising?

Toronto has long been known for high child care costs. Before recent reforms, it was one of the most expensive cities for daycare – with infant fees around $1,500+ per month in 2019-2020 . Even after subsidies began, Toronto still tops the charts, with infant fees at just over $900 a month – among the highest in Canada . Several factors explain why fees have been climbing or remain high:

• Historic Underinvestment and Inflation: The cost of running a quality daycare in a big city is substantial. Rent, healthy meals, learning materials, and fair wages for educators all add up. Over the years, fees crept upward to keep up with inflation and to attract and retain qualified staff. Toronto parents often felt these increases as another hit to the family budget.
• Some Centres Opting Out of Fee Reductions: Not all daycare providers are participating in the government’s new affordability program. Ontario’s Canada-Wide Early Learning and Child Care (CWELCC) system – often called the $10-a-day program – is driving fees down. But a number of daycares, especially private for-profit centres, chose not to enroll. In the Greater Toronto Area, about 25% of for-profit daycares have opted out of the $10/day program (compared to only 6% of non-profits) . Why does this matter? If a centre isn’t in the system, it doesn’t receive government funding to offset fees – so parents there keep paying full price. Some families have even experienced shockingly steep hikes: one Toronto daycare withdrew from the program and told parents that fees would jump 150% in the new year .
• Policy Changes Pressuring Non-Enrolled Daycares: The Ontario government is encouraging all providers to join the $10/day plan. It recently announced it will cut certain funding (like fee subsidies and wage grants) for centres that don’t participate . Critics warn this could force those daycares to “either close their doors, or dramatically raise their fees” . In other words, parents at a non-participating centre might see costs go up as those businesses struggle to cover expenses without support. This policy shift is meant to nudge more daycares into the affordability program, ultimately benefiting families.

In short, if you’ve heard about daycare fee increases, it’s likely in cases where a provider isn’t part of the new system. High operating costs and funding changes can translate into higher fees for those centres. The good news is that broader initiatives are underway to relieve the burden for most families.

How Government Initiatives Are Easing the Pressure

Amid these fee increase stories, there’s a silver lining: major government action is actively making child care more affordable for Toronto parents. Both federal and provincial authorities have recognized the strain on families and introduced measures to reverse the cost trend:

• The $10-a-Day Child Care Agreement (CWELCC): In 2022, Ontario joined the federal plan to reduce daycare fees to an average of $10 a day by 2025-26 . This was a game-changer. By the end of 2022, many parents saw their fees cut in half, practically overnight. In fact, Ontario achieved roughly a 50% fee reduction on average, meeting the federal target in most regions. For example, median toddler fees in Toronto dropped from about $1,578 a month in 2020 to $725 by 2023 – a huge relief for family budgets.
• Fee Caps and Reductions: As of January 1, 2025, Ontario capped licensed daycare fees at $22 per day for children under six if the provider is enrolled in the CWELCC system . Some centres even charge less (around $19/day) under this cap, delivering additional savings to parents . A $22 daily rate is a dramatic improvement from the $50-$70 per day that was common in Toronto a few years ago. It’s an interim step toward the ultimate goal of $10-a-day child care. Important: this cap only applies to daycares participating in the government program – another reason to ensure your daycare has signed on.
• Expanded Support and Funding: Along with lowering fees, governments are investing in more child care spaces and stability. Ontario’s agreement commits to creating 86,000 new spaces across the province to help families find spots . Already, tens of thousands of new spaces have opened (though demand still outstrips supply). The province also introduced a new funding formula for daycares in the $10/day system to cover operators’ actual costs . This helps centres remain financially stable while charging low fees, so parents get affordable care without sacrificing quality. For lower-income families, Ontario continues to offer a child care tax credit covering up to 75% of expenses – a helpful boost at tax time for those who qualify.

The bottom line: if your child’s daycare is enrolled in the CWELCC $10/day program, your fees should have dropped significantly already, and you’re benefiting from these caps and funding boosts. Parents are reporting substantial savings – in one case, an extra $1,000 a month back in their pocket after fees were reduced . That kind of savings can go toward family groceries, rent, or even a new home. It’s clear proof that the government initiatives are starting to pay off for Ontario families.

What It Means for Your Family’s Budget

For Toronto parents, child care is often the second-largest monthly expense after housing. A national survey found that in 2023, parents were still spending an average of $7,500 per year on child care for a young child . That’s no small sum – but it’s a lot better than it was before. If you have felt daycare costs easing a bit lately, you’re likely seeing the effect of the new subsidies.

However, not every family has felt relief yet. If your daycare didn’t join the fee-reduction program or if you’ve been on a waitlist, you might be wondering how to make child care truly affordable for your household. Here’s how the current changes could impact you:

• More Money in Your Pocket (for CWELCC Families): Families with children in enrolled centres should be enjoying lower fees and monthly savings. You’ll know if this is you – your provider would have notified you of fee reductions. This means you can allocate those savings to other needs or save for your child’s future. It also might make it feasible for a parent to return to work sooner, since daycare isn’t wiping out the paycheck. The government’s plan is designed to keep easing the financial burden each year until we hit that $10/day target.
• Sticker Shock (for Non-Enrolled or Private Care): If your child is in a daycare that isn’t part of the system (or if you rely on unlicensed care), you could be facing higher bills. As noted, some non-participating centres are raising fees to cope without government funding . You might suddenly get a notice of a fee increase for the new year, straining your budget unexpectedly. This can be incredibly frustrating – and it’s exactly what the new policies are trying to prevent by encouraging universal participation.
• Navigating Waitlists and Transitions: With many parents now seeking the low-cost $10/day spaces, waitlists can be long. It’s a bit of a paradox: fees are coming down, but finding an available spot might take time, especially for infants. The expansion of spaces is ongoing, but in the short term you may need to plan ahead. Some families are switching daycare providers to get into the CWELCC program and access the savings. While moving a child to a new centre can be a tough decision, the promise of high-quality care at half the cost is a strong motivator.

The key takeaway is that affordable child care is becoming a reality in Toronto, but your experience will depend on your provider and choices. Understanding the new landscape will help you make the best decisions for your family’s finances and well-being.

Tips to Navigate Rising Daycare Costs

Facing the changes in child care fees can be overwhelming, but with the right steps you can turn this challenge into an opportunity to save money and reduce stress. Here are some practical tips for Toronto parents to navigate the current daycare situation:

• Ensure Your Daycare Is Enrolled in CWELCC: This is the single biggest factor in affordability. Ask your provider directly if they’re part of the Canada-Wide $10/day program. If they aren’t (or if they’re considering dropping out), be aware that you could see major fee hikes. You may want to explore other licensed centres that are enrolled, so you can take advantage of the $22/day fee cap and future reductions . Remember, the program is voluntary for providers – don’t assume every daycare is in. Do a quick check so you’re not caught off guard.
• Explore Financial Supports: Make sure you’re benefiting from all available assistance. Toronto still offers child care fee subsidies for eligible low-income families (though new subsidies for under-6 kids now require using a CWELCC-enrolled centre) . Additionally, the Ontario Childcare Tax Credit can refund up to 75% of your child care expenses if your family qualifies – that’s money back in your pocket at tax season. And don’t forget the federal Child Care Expense deduction when filing taxes. These supports can significantly offset costs and save you money each year.
• Compare Daycare Options with Cost in Mind: Not all daycares have the same fees even under CWELCC. For instance, some centres might charge less than the $22 cap – perhaps $19 or $20 a day – depending on their pre-existing fee structure . Look at a few options: a licensed home daycare might be cheaper (and now subsidized through CWELCC as well), while a Montessori program might have a slightly higher fee. All licensed centers in the system provide personalized care and must meet quality standards, so you can confidently compare based on practical factors like location, hours, and cost.
• Plan Ahead and Get on Waitlists: With demand high for affordable spots, it’s wise to plan early. If you’re expecting a baby or your toddler is approaching daycare age, join waitlists as soon as possible for centers you’re interested in. Yes, this requires some foresight, but many Toronto daycares allow pre-enrollment or waitlisting for infants well in advance. Early planning increases the chance you’ll secure a spot at a hassle-free price when you need it. In the meantime, stay in communication with providers about openings or cancellations.
• Choose a Reliable, Family-Focused Centre: Rising fees and policy changes highlight the importance of picking a daycare that truly supports families. Look for signs of a customer-centric approach – flexible hours, transparent communication, and an experienced staff. A centre that values family needs will make transitions easier and work with you if challenges arise. This is where Cozytime shines as a practical and trustworthy choice (more on that below). The right daycare partner will not only deliver quality education and care but also peace of mind that you won’t be hit with unexpected costs or inconveniences.

By following these tips, you can stay ahead of rising costs and make informed decisions that benefit both your child and your budget. Many Toronto parents are already strategizing in these ways – and finding that with a bit of research and proactivity, daycare can indeed be affordable and easy.

Why Cozytime Daycare Makes Life Easier for Parents

Amid all the changes, parents need a daycare they can count on for affordable, high-quality, and stress-free service. This is where Cozytime Child Care stands out. We believe that supporting families is just as important as educating children. Here’s how Cozytime helps Toronto parents navigate the new child care landscape with confidence:

• Committed to Saving You Money: Cozytime is proud to be enrolled in the CWELCC $10/day program, which means we’ve slashed our fees to meet government reduction targets. In line with Ontario’s plan, our fees are capped and on track toward $10/day, saving you money without compromising on care. You’ll never have to worry about surprise hikes – our participation in the program guarantees stable, reduced rates for your little one’s care. We handle the funding details so you can simply enjoy the savings and invest in your family’s future.
• Experienced Team, Personalized Care: Our experienced team of educators and caregivers is what truly sets Cozytime apart. Many of our staff have been with us for years, and they understand the unique needs of each child. We provide personalized care in a warm, nurturing environment where your child can learn, play, and thrive at their own pace. Low child-to-teacher ratios and a tailored curriculum ensure that every child gets the attention they deserve. For parents, this means peace of mind – knowing your little one is in capable, caring hands every day.
• Hassle-Free for Parents: From the first inquiry to daily drop-offs, Cozytime strives to make the daycare experience easy and hassle-free for you. Worried about waitlists or paperwork? We’ve streamlined our enrollment process to help you secure a spot with minimal fuss. We offer flexible scheduling and convenient hours to fit your workday. Communication is transparent and open – you’ll receive regular updates on your child’s progress and any policy changes (like fee reductions) that benefit you. Our goal is to remove the stress from child care logistics so you can focus on your family and career.
• A Family-Centric Philosophy: As a customer-centric daycare, Cozytime treats parents as partners. We know the recent fee changes and news can be confusing, so we’re here to guide and support you. Have questions about the $10/day program or how CWELCC works? We’re happy to explain how it all translates to savings and quality improvements for your child. Need advice transitioning from another centre or adjusting your schedule? Our staff is ready with a listening ear and helpful solutions. At Cozytime, you’re not just another client – you’re part of the Cozytime family.

In these times of change, choosing the right daycare can make all the difference. Cozytime offers stability, affordability, and a proven commitment to Toronto families. We blend the benefits of the new child care system with the trusted, personalized service of a long-established daycare. The result is a win-win: quality care that is easy on your budget and excellent for your child’s development.

Looking Ahead: Affordable Child Care and You

Daycare fees in Toronto may have been on a roller-coaster, but the trend is moving in a positive direction for parents. With government intervention, many families are finally seeing child care that doesn’t break the bank. By staying informed and proactive – and by choosing supportive providers like Cozytime – you can turn these changes into opportunities. Imagine a future where your child is happy and thriving in daycare, and you’re not losing sleep over the cost. That future is within reach.

Ready to embrace stress-free, affordable child care? Cozytime is here to make it happen. Our team is happy to answer any questions about fee subsidies, enrollment, or how we can support your family through these transitions. Reach out to us today to learn more or to schedule a tour. Let us show you how we can make your daycare experience easy, affordable, and family-focused from start to finish.

Your family deserves the best care at the best price. With the right information and the right daycare partner, you can navigate rising fees and come out ahead – with extra savings in your pocket and the confidence that your child is in good hands. Cozytime is excited to be that partner for you, helping you save money and find peace of mind as we all work toward a brighter, $10-a-day child care future in Toronto.