Ontario child care deal extended but wage freeze draws criticism

Ontario and the federal government have extended a major child care funding agreement through March 2031, securing nearly $12 billion in federal funds. The four-year extension of the Canada-wide Early Learning and Child Care (CWELCC) agreement was announced on September 29, 2026. The deal ensures continued support for reduced daily child care fees for families. It also freezes the wage floor for registered early childhood educators (ECEs), a move advocates call a critical mistake.

The Ontario Coalition for Better Child Care and the Association of Early Childhood Educators Ontario said the wage freeze is one of the "most critical mistakes" in the renewed agreement. The wage floor for registered ECEs, who hold a two-year professional diploma, currently sits at $25.86 per hour. That rate was increased from an initial $18 per hour set in 2022 following advocacy, with annual $1 increases. The new agreement freezes this floor, with no further mandated increases.

Advocates argue the current wages are not enough to retain educators or attract new ones to the field. Ontario has an estimated shortage of 10,000 registered ECEs, leading to severe staffing shortages at centres. Waitlists for child care spots have skyrocketed across the province, with tens of thousands of children waiting. "Without ECEs, child care spaces cannot be staffed, new spaces cannot open, and the goal of achieving universal child care in Canada remains out of reach," the advocates said.

Sector advocates have repeatedly called for a publicly funded wage grid starting at $35 to $45 per hour for registered ECEs and $28 per hour for other early years staff. They say the wage freeze assumes that ECEs, 96 percent of whom are women, will continue to work due to commitment rather than fair compensation. "The myth is that commitment is an infinite resource. The freeze of the wage floor treats it as such," said Meghan Mendelin, a postdoctoral researcher at Brock University who has studied ECE experiences during the CWELCC rollout. The program has brought economic gains, including boosting GDP and improving women's labour force participation, according to the Centre for Future Work. Advocates warn that if educators keep leaving due to poor pay, the program cannot continue to realize these gains. As the federal and provincial governments work on a "sustainable path forward" for child care over the next year, advocates say wage increases and other workforce investments should be a top priority.

With files from Canadian Dimension