With major changes coming to Alberta’s child care funding and subsidy programs under the Canada-Alberta Canada-Wide Early Learning and Child Care (CWELCC) Agreement, it’s important for daycare operators, preschools, and family day homes to stay informed. These updates will significantly impact your operational models, financial planning, and the families you serve.
Starting April 1, 2025, new affordability funding and flat fee structures went into effect. Here’s what Alberta child care providers need to know:
Why This Matters for Parents
This shift aims to provide predictability and equity in child care costs and Alberta child care funding for families. For many, especially those who previously paid higher rates, this will mean significant savings. For example, some families previously paying upwards of $1,000-$1,500/month for full-time care could see their costs drop to the flat rate of $326.25, leading to a monthly savings of $700-$1,200 (or more). However, it’s worth noting that some lower-income families who previously received very high subsidies, effectively paying little to nothing, may see an increase in their child care expenses under the new flat fee system.
End of the Previous Child Care Subsidy Program
The subsidy program that was in place previously finished on March 31, 2025, for children aged 0 through kindergarten age and attending licensed daycare, family day homes, and preschools. The subsidy remains available for out-of-school care students in kindergarten through grade six.
New Child Care Participant Numbers
Every child enrolled in a licensed child care program will be assigned a unique identifier. This new identifier is required for the new claims system, launching in summer 2025. All providers need to begin registering children in the child care licensing portal starting in April 2025.
Preschool-Specific Changes
There will be no mandatory flat fees for preschool. Instead, there will be increased affordability funding of up to $100 per enrolled child. The existing fee flexibility remains, allowing providers to structure fees as needed.
Timeline for Providers
📆 January–March 2025:
- ✅ Sign Affordability Grant Agreements by March 31.
- ✅ Attend training and information sessions on the new funding and claims systems.
📆 April 2025:
- ✅ Start registering children in the new Child Care Licensing Portal.
- ✅ Continue claims under the existing system during the transition period.
📆 Summer 2025:
- ✅ Transition to the new claims system, with phased training for providers.
💡 Additional Notes for Providers:
- Wage top-ups, professional development, and other supports are still available, but to access these, providers must sign the new Affordability Grant Agreement.
- Fees will be standardized across Alberta, with adjustments for inflation and cost increases.
For-Profit Space Cap & Organizational Models
A significant change under the Canada-Alberta CWELCC Agreement is the federal cap on for-profit child care spaces, prioritizing non-profit and public care expansion. This means new or expanding for-profit providers may not qualify for affordability grants, making it difficult ot offer the $15/day rate and risking their business models. Many operators who invested based on their prior expectations may now face financial risk.
With these new changes including a cap on the number of for-profit child care spaces, many providers may be looking to change their model from a for-profit operation to a non-profit. Here’s a brief overview of what to consider:
- For-Profit: Operates to generate a profit; new spaces face significant funding limitations under the cap.
- Non-Profit: Reinvests surplus back into the program; preferred for government funding and grants. Conversion can be complex but offers long-term stability in the current landscape.
For a more detailed analysis of converting to non-profit, please see our helpful resource.
Moving Forward with Alberta Child Care Changes
Staying informed about Alberta government child care changes is necessary for all daycare and preschool program providers. By understanding new funding models, reporting requirements, and s gifts in policy, you can ensure you’re staying compliant and continue providing this essential service to families.
ChildFriendly Pro’s Alberta-specific child care management software helps you navigate these transitions with as little stress as possible.
