Big Changes Coming to Child Care in Alberta: What Parents and Providers Need to Know

The Alberta government is making significant changes to child care funding and affordability programs, effective April 1, 2025. These updates aim to ensure high-quality, affordable, and sustainable child care across the province. Whether you are a parent, family day home educator, or child care provider, it’s essential to understand how these changes will impact you.

What’s Changing?

On April 1, 2025, the government is introducing three unique Affordability Funding approaches for:

• Daycares
• Preschools
• Family Day Homes (FDHs)

These changes are part of the Canada-Alberta Canada-Wide Early Learning and Child Care Agreement (CACWELCC) and will replace the current Child Care Subsidy Program for children zero to kindergarten age(attending child care during school hours).

New Flat-Rate Child Care Fees

Instead of variable child care rates, families will now pay a predictable, standardized monthly fee:

• $326.25 per month for full-time care (100+ hours/month)
• $230 per month for part-time care (50-99 hours/month)
• Preschools will not have a flat fee but will provide a discount of up to $100 per child per month.

These changes mean that the Alberta government will cover 80% of child care costs to keep services affordable for families.

What About the Child Care Subsidy Program?

• The Child Care Subsidy Program will end on March 31, 2025, for children zero to kindergarten age.
• New subsidy applications will not be accepted after February 1, 2025.
• Subsidies for out-of-school care (OSC) for children in kindergarten to Grade 6 will continue.

Impact on Parents

• Parents will now pay the same fee no matter where they live in Alberta.
• No action is required—child care providers will apply for the Affordability Grant on behalf of families.
• Programs can still charge optional supplemental fees for things like transportation, meals, and field trips, but these must be optional.

Impact on Family Day Homes

• Regional FDH Child Care Fees are being set based on seven regions and two age categories:
  • Infants (under 19 months)
  • Children 19 months to kindergarten age
• Funding for FDH educators will now be based on these regional rates.
• FDH agencies will continue to provide wage top-ups, professional development, and other funding supports.

Introduction of the Child Care Participant Number

To improve efficiency and accountability, Alberta is introducing a Child Care Participant Number for every child in a licensed child care program. This will:

• Streamline the claims process for providers.
• Enhance financial transparency for parents.
• Improve tracking of government funding.

Next Steps for Providers

• Providers must sign the Affordability Grant Agreement by March 31, 2025.
• A new claims system will be introduced in summer 2025.
• Information sessions are being held in February and March to help providers understand the transition.

Final Thoughts

These historic changes mark a major shift in how child care is funded in Alberta. While the goal is to make care more affordable and sustainable, the transition may present challenges. Parents and child care providers should stay informed and prepared by attending information sessions and reviewing official resources.

For more details, visit www.alberta.ca/child-care or contact childcare@gov.ab.ca.