Daycare costs vary widely across major Canadian cities despite national program

VANCOUVER — The median cost of daycare for an infant is $40 a day in Vancouver, $22 a day in Toronto and $15 a day in Calgary, according to the Canadian Centre for Policy Alternatives.

In Vancouver, 45 per cent of preschool spaces cost $10 a day while 25 per cent cost more than $46 a day, the centre said.

"This means that one family could be paying $11,960 a year per child, while another pays just $2,600, despite living in the same city," wrote early retirees and authors Kristy Shen and Bryce Leung in an analysis.

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The price differences stem largely from how provincial governments structure their child care subsidies.

B.C. provides a subsidy toward a daycare provider's market price, meaning costs can vary widely unless the daycare participates in the $10-a-day option.

"But if you're one of the lucky ones who manages to find $10 a day, you're sitting pretty," the authors wrote.

Ontario sets capped fees at subsidized centres at $22 a day, with other centres charging market rates.

"So unless you live or work near one of the subsidized centres, you're paying higher market rates," the authors noted.

Alberta sets a flat rate of $326.25 a month, the equivalent of $15 a day, at participating centres, and there are no separate $10-a-day daycares.

Eligibility differs across provinces, and not all daycares apply or are approved to participate in the government-subsidized programs.

For parents, securing a subsidized spot involves restrictions such as distance to home and work, or hours that fit a work schedule.

"Even if you are lucky enough to snag a coveted $10-a-day daycare spot, you may have to weigh that against the extra cost and time, if the daycare is far from work and home, or you need to supplement with additional child care arrangements if the hours don't fit your work hours," the authors wrote.

Assuming full-time daycare of five days a week for 52 weeks a year, it would cost parents $10,400 a year in Vancouver, $5,720 a year in Toronto and $3,900 a year in Calgary, based on the reported median daily fee.

Using the median hourly wage for Canadian employees of $30.77 before tax, a Vancouver parent would need to work 211 extra hours a year compared to a Calgary parent, the equivalent of five extra weeks of work.

The national daycare program has provided savings to parents, but the cost differences mean some parents may have to work longer to afford daycare depending on where they live.

"It's ironic that the Canada-wide Early Learning and Child Care system, which was designed to help parents across the country afford daycare, has inadvertently resulted in costs varying wildly depending on your postal code, because of how provincial governments have chosen to structure the subsidies," the authors wrote.

Novello Desserts reported in October that families in Ottawa face long waitlists and unpredictable costs for child care, despite a federal-provincial agreement promising $10-a-day daycare.

With files from The Globe and Mail