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By Regan Tate

Child care fees to begin dropping in January

Nov 26, 2021 | 1:59 PM

MEDICINE HAT, AB – The Provincial Government has released more information on how child care fees will be lowered starting in January 2022.

Earlier this month the province inked a deal with Ottawa that will reduce daycare fees by half next year. Within five years, fees will be reduced to an average of $10 per day.

The government plans to reduce fees for families by offering subsidies for those earning under $180,000. Parents can apply online starting in the new year.

New operating grants for facility-based child-care programs starting in mid-January will help providers lower fees for parents without shouldering extra costs.

Both the operating grants and subsidies will go to the provider who will then reduce fees for parents. The subsidy is layered in addition to the operating grant to make sure parents who need it most see greater benefits.

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The news is welcomed by parents across the province struggling with the high cost of child care. Mylissa Scutchings says “I can use the money that I would have spent on child care in different ways, such as saving for my children’s future.”

A chart with breakdowns of the subsidies for licensed spaces in child-care facilities and preschools is at the bottom of this article. The government is working with family day homes and day home agencies to finalize the grants and subsidies but they should roll out in mid-January as well.

Here are some examples of how the subsidy and operating grants will work.

For example, a family earning $75,000 per year with one toddler attending a daycare program would be eligible for full subsidy. If the current fees are $1,000 per month, the daycare program will receive $510 per month in an operating grant and the family would be eligible for $266 per month. The remaining parent portion will be $224 per month or approximately $10 per day.

A family earning $130,000 per year with an infant attending a daycare program would be eligible for partial subsidy. If the current fees are $1,200 per month, the program will receive $635 per month in an operating grant and the family would be eligible for $226 per month in subsidy. The remaining parent portion is $339 per month or $15.60 per day.

Source: Government of Alberta

Source: Government of Alberta