Understanding Ontario’s 2025 Child Care Fee Caps

What families, providers, and businesses need to know about the next phase of child care affordability measures

As part of Canada’s ongoing plan to deliver affordable child care nationwide, the Government of Ontario implemented a child care fee cap of $22 per day in January 2025. This is a significant step toward achieving the federal-provincial goal of $10-a-day average child care by March 2026.

The fee cap is applied only to licensed child care centres that are participating in the Canada-Wide Early Learning and Child Care (CWELCC) system, a federal program introduced in 2021 through bilateral agreements with provinces and territories.

What Does the Fee Cap Mean?

As of January 1, 2025, families enrolled in participating licensed child care programs should not be charged more than $22 per day per child. This reduction is mandatory for providers in the CWELCC system and represents a continuation of earlier phased reductions that began in 2022.

Providers that are not enrolled in the CWELCC program are not required to follow these capped fees, and their pricing may vary based on market rates.

Who Is Eligible?

To benefit from the reduced fees, a family must:

• Have a child enrolled in a licensed child care centre or home child care agency that has opted into the CWELCC system.

• Reside in Ontario.

• Have a child aged 0–5 years (some programs extend coverage to children in kindergarten depending on the centre).

Eligibility does not depend on income, and all families enrolled in participating centres receive the same reduced rate.

These fee caps are implemented under the Ontario Child Care and Early Years Act, 2014 and the Canada-Ontario Early Learning and Child Care Agreement.

• Ontario Regulation 137/15 under the Act outlines requirements for licensing, participation, and funding.

• The Canada-Ontario agreement, renewed in 2024, provides continued federal funding to support the reductions.

  
  

For centres receiving public funds, compliance with fee caps is a regulatory requirement. The Ministry of Education monitors enforcement through regular inspections and reporting obligations.

Providers enrolled in CWELCC receive public funding to offset the reduced fees. This funding is meant to stabilize their operations while ensuring accessibility for families. Centres may be required to:

• Sign annual funding agreements

• Submit financial audits and reports

• Adhere to wage enhancement standards for early childhood educators

  
  

Providers that choose not to participate in CWELCC retain autonomy over their pricing, but may be excluded from public fee reduction programs.

The Ontario government and federal partners plan to reduce child care fees to an average of $10 per day by March 2026. The $22 cap is a transitional step in this multi-year rollout.

Future reforms may include:

• Additional expansion of child care spaces

• Further educator wage increases

• Revised eligibility guidelines for fee subsidies

  
  

These changes aim to make child care more accessible, equitable, and financially sustainable across all income levels.

Ontario’s 2025 child care fee cap is a major policy development aimed at making licensed early learning and care more affordable for families. While not all providers are included, those participating in the CWELCC program must comply with the new $22-per-day maximum. Understanding your eligibility and provider status is key to accessing these savings.

For up-to-date information, visit the official government resources below.

Frequently Asked Questions

Q: Does this cap apply to after-school care or unlicensed providers?A: No. The fee cap only applies to licensed child care centres and home agencies participating in CWELCC. It does not include unlicensed providers or school-age after-care.

Q: Do I need to apply to receive the capped rate?A: No separate application is needed. If your child is enrolled in a participating centre, the fee reduction is applied automatically.

Sources

1. Government of Ontario – Canada-Wide Early Learning and Child Care (CWELCC) System Overview"Canada-wide early learning and child care system", Government of Ontario, accessed April 2025.Available at: https://www.ontario.ca/page/canada-wide-early-learning-and-child-care

2. Child Care and Early Years Act, 2014, S.O. 2014, c. 11, Sched. 1Legislation governing child care in Ontario.Available at: https://www.ontario.ca/laws/statute/14c11

3. Ontario Regulation 137/15: General under the Child Care and Early Years Act, 2014Operational rules and funding requirements for licensed providers.Available at: https://www.ontario.ca/laws/regulation/150137

4. Canada-Ontario Early Learning and Child Care Agreement (Renewed 2024)Federal-provincial agreement setting funding terms and child care fee targets.Available through Government of Canada portal: https://www.canada.ca/en/early-learning-child-care-agreement/ontario.html

5. CityNews Toronto – "New Laws and Regulations Coming into Effect in Ontario in 2025"Outlines policy changes across sectors, including child care.Published December 31, 2024.Available at: https://toronto.citynews.ca/2024/12/31/ontario-laws-and-regulations-2025