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Early Childcare costs for kids 5 and under cut in half

Costs to put children up to five years of age into child care will be slashed up to 50 per cent in the Northwest Territories.
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Skyler Inglangasuk, Athena Blake, Bristol Kasook and Harlyn Jerome Lucas dance around Inuvik’s Children First Centre while Zacharias Minakis plays on the slide in the background. Early Childcare costs for children age five and under are being slashed by 50 per cent, effective Jan. 1. Eric Bowling/NNSL photo

Costs to put children up to five years of age into child care will be slashed up to 50 per cent in the Northwest Territories.

Officials from the federal government and the GNWT made the announcement on March 3.

“A high-quality early learning and child care system provides children with the foundations that influence their well-being, learning, and development for the rest of their lives,” said NWT Education Minister RJ Simpson. “Moving towards a robust, mature, and sustainable system does not happen overnight.

“The vision and actions outlined in this Strategy and Action Plan will help the GNWT to continue to collaborate across the territory to create an early learning and child care system that meets the needs of children and families in the NWT.”

Simpson added the GNWT was releasing its 2030 Childcare Strategy. He said the entire sector would receive $114 million by 2026, with the GNWT contributing $50 million and the federal government pitching in $64 million.

He added the funding would transform the NWT Early Learning Childcare system “beyond a reduction to cost.”

Read the Early Childcare Strategy here.

Funding provided through the federal Canada-Northwest Territories Canada-wide Early Learning and Child Care Agreement, which was signed late in December, will be put towards the implementation of the GNWT’s 2030: Early Learning and Childcare Strategy. Over the next decade, the GNWT says it’s committing to improving the affordability of early learning and child care, supporting the sustainability of programs and the creation of new ones, improving participation numbers and making childcare more inclusive.

Also in the 10-year plan is a commitment to expanding the childcare workforce and increasing wages for Early Child Care educators. Ultimately, the goal is to bring the costs of early learning and childcare down to $10 per day on average, Canada-wide, by March 2026.

However, that ambition is accelerated for children five years and under. The GNWT announced today it would reduce fees by 50 per cent, retroactive to Jan. 1. Families who have already paid fees will be refunded the difference.

“The Government of Canada’s goal is to ensure that by the end of March 2026, all families in Canada, no matter where they live, will have access to licensed early learning and child care for an average of $10 a day,” said federal Minister of Families, Children and Social Development Karina Gould. “The reduction of fees announced today in the Northwest Territories is a meaningful step toward achieving that goal and will make a real difference for families across the territory.”

Gould said the reductions could save an average NWT family over $4,950 per child by the end of 2022 and would allow both parents to pursue careers while raising children or pursue other goals. She added the NWT was nine to 10 months ahead of schedule, having only signed an agreement in December.

The remainder of the funding will be used to support the recruitment of early childhood educators, with the understanding that the cost of living in the North is substantially higher and that workers would have to be paid higher wages than elsewhere in Canada. In spite of the higher costs, the GNWT is committing to creating 300 new spaces by 2025-26.

Inclusiveness is also a vital part of the program, with commitments to support culturally appropriate programming built on traditional knowledge and Indigenous worldviews, as well as providing opportunities for children with diverse needs to participate in early childcare.

“Today’s agreement is certainly great news for the Northwest Territories,” said NWT MP Michael McLeod. “Our government has been very clear that our priority is making life more affordable for Canadians and today we’re delivering on that promise.”

Under the federal-GNWT agreement, Ottawa will provide over $51 million over five years for the implementation of the program.



About the Author: Eric Bowling

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