Local parents say new changes to childcare subsidies will increase the cost of childcare for their families.
This week the Government of Alberta announced it will introduce a flat fee of $15-a-day child care across the province, but some families that need affordable care the most may actually see their fees increase. Jobs, Economy and Trade Minister Matt Jones announced the changes on Jan. 30.
"Starting April 1, parents with children zero to kindergarten age attending full-time licensed daycare facilities and family day home programs across the province will be eligible for a flat parent fee of $326.25 per month, or roughly $15 a day. Parents requiring part-time care will pay $230 per month," the news release said.
The announcement also specified the flat fee will replace the Child Care Subsidy program for children zero to kindergarten age.
For Roslyn Young's family, the changes will actually mean an increase in costs. Her son won't start kindergarten until the fall, almost five months after the changes are set to take effect.
"Currently before subsidy for my son, I believe I pay $1,056 a month," Young said, before subtracting the amounts covered by a federal grant and the subsidy program. "So my out-of-pocket expense for my son currently is $173," she said.
With the introduction of the new flat fee, Young's expense for her son is increasing by $152 a month, nearly double. For Young, a single parent with a single income, it's noticeable, even though she said she has a decent job with the City of St. Albert.
"I do make decent enough money, and I know there's people who make less than me that are also having their rates doubled. So it's frustrating," she said. "So now families that make over $180,000 a year are getting $325 daycare. And families that make $30,000 a year are getting $325 daycare."
Other St. Albert families are in a similar situation. Alyssa Williams and her fiance have a three-year-old son who attends full-time daycare. She pays $160 a month under the current model, and is facing down a similar increase to Young.
"My first reaction was 'Well, that sucks, because everything is so expensive right now,'" Williams said. She feels the changes are taking away from the people who need the extra help the most.
"It just kind of seems like a silly thing to switch and to change, because we shouldn't be taking out of pockets of people who don't already have a lot of money," she said. Williams said she and her fiance are upset and stressed at the prospect of paying double the amount they were before.
Although the cost is something Young feels she can deal with, she thinks the messaging from the province is frustrating.
"The actual cost I don't have as much of an issue with. It's the way they're presenting it as if they're coming in and saying they're cutting 80 per cent of child care costs and doing all these great things, failing to recognize that the federal grant is covering the bulk of it. The provincial government is not saving the majority of us money," she said.
The child care affordability grant is funding paid directly to the child care program to reduce the fees that parents pay out of pocket. Its intention is to reduce parent fees across the province to an average of $15 per day. It is based on the age of the child and not income. Currently, the maximum grant rate for children in daycare between three years old and not-yet-kindergarten age is $626.
The child care subsidy is based on a family's income. Until March 31, 2025 when the program will be phased out, the maximum subsidy rate for a family making $0 to $119,999 a year with a child attending full-time daycare is $266.
When asked about the introduction of the flat fee and the changes to the subsidy program, Jones said in an emailed statement:
"On behalf of families, Alberta’s government covers about 80 per cent of child care fees through grants to daycare facilities and family day homes. This means a family using full-time daycare could save, on average, $11,000 per child, per year.
"Now that we have reached an 80 per cent reduction in child care fees through the introduction of a flat $15 per day child care fee (or $326.25 per month), the subsidy will be phased out, with those funds redirected to supporting the affordability grants and system broadly.
Jones said parents might see increases in their childcare fees; some will see decreases, including some families currently receiving a subsidies.
Alberta has committed to reducing parent fees to $10-per-day for licensed child care, Jones said, serving children up to kindergarten age attending child care during regular school hours.
"Alberta’s government is introducing a flat monthly parent fee so families can choose the quality child care that works best for them, regardless of where they live or which provider they choose.”
Young says the changes are frustrating, but ultimately something most people will have to find some way to deal with.
"It's not really an optional cost," she said. "Most people are working because they have to pay their bills. So, what are they going to do with their children during the day?"
