Ontario Just Made A Child Care Deal With The Feds That Could Save Parents So Much Money

Ontario and the federal government have just reached a multi-billion dollar deal that could save parents with young kids some serious money on child care.

On March 28, Premier Doug Ford alongside Prime Minister Justin Trudeau announced that they have reached a $13.2 billion multi-year agreement that will cut child care fees by up to 25% by April 1, 2022, to a minimum of $12 a day.

By December 2022, parents can expect another 25% reduction, which will see total costs cut in half from what parents are used to paying.

"Savings per child, by the end of 2022, of an average of $6,000 a year. That is real money for families at a time where we know costs of living continue to go up, the situation in Ukraine, the coming out of COVID, the challenges that our economies are facing means that this is real money that will stay in the pockets of families this year to help with everything else," Trudeau said during the press conference.

By September 2025, fees are expected to be reduced to an average of just $10 a day. The deal also includes the creation of about 86,000 new child care spaces for kids 5 years old and younger.

"This deal will immediately reduce the cost of child care in Ontario and provide refunds retroactive to April 1," Ford said.

According to the Ontario government, parent rebates will begin in May, retroactive to April 1, after licenced centres and agencies are enrolled in the new system.