Ottawa, October 21, 2025—A report from Auditor General Karen Hogan tabled today in the House of Commons concludes that Employment and Social Development Canada supported the quality, affordability, access, inclusion, and flexibility of early learning and child care across Canada by providing funding to provincial and territorial governments and Indigenous partners.
The federal government committed to providing $35 billion from April 2021 to March 2026 to provincial, territorial, and Indigenous partners to support a Canada-wide early learning and child care system. The audit found that most regulated early learning and child care spaces cost less today than in 2021. As of March 2024, out‑of‑pocket fees for the federally funded child care spaces had been reduced to an average of about $16.50 per day across Canada. The target is to reach an average of $10 per day by March 2026. The audit found that by March 2024, half the provinces in the country and all 3 territories had already met the $10‑a‑day target.
Employment and Social Development Canada also aimed to increase the number of regulated early learning and child care spaces across the country by 250,000 over the 5 years. The audit found that by the end of 2024, more than 112,000 new spaces had been created. However, with more than half of the spaces left to be created in the remaining 2 years, there is a risk that the target may not be met, leaving families in Canada with less access to early learning and child care spaces than was planned.
The audit also found that Employment and Social Development Canada was more than 4 years behind in reporting to the public the results of this Canada-wide program. The department lacked comparable information to track the program’s overall performance and progress nationwide, including whether federal funding had met the objectives of supporting diverse and vulnerable children and families and supporting Indigenous early learning and child care initiatives.
“Important progress has been made in bringing down child care costs to parents,” Ms. Hogan said. “However, the department needs to collect better data from the provinces and territories to inform future decisions about the program and support Canadian families.”
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The 2025 Report of the Auditor General of Canada, Canada-Wide Early Learning and Child Care System, is available on the Office of the Auditor General of Canada website.
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