HUMA Committee briefing binder: Appearance by the Minister of Families, Children and Social Development (FCSD) - December 3, 2024

If pressed on the Child Care Expansion Loan Program and support to not-for-profit

• The Child Care Expansion Loan Program will aim to provide up to $1 billion in low-cost loans and $60 million in non-repayable grants to support public and not-for-profit child care providers in constructing new facilities and spaces as well as renovating their existing child care centres. The proposed new capacity building program will help providers apply for funding through the Child Care Expansion Loan Program, and support Early Learning and Child Care research initiatives
• The Canada-wide Agreements predominantly support not-for-profit, public, and family-based child care providers. Focusing on growth in this sector supports the sound use of public funds, ensuring that surplus earnings are reinvested in programs and services to allow for continued growth of higher-quality programs
• Studies have shown that higher-quality programs and services tend to be offered in not-for-profit and public child care centers as compared to for-profit centers
• However, given the unique ELCC landscape across the country, the Government of Canada recognizes that licensed, for-profit child care will continue to play a role in the expansion of the Canada-wide ELCC system. The Government of Canada will continue to work with the provinces and territories to support the growth of quality child care spaces across the country, while ensuring that families in existing licensed spaces – including for-profit spaces – benefit from more affordable child care

If pressed on Indigenous ELCC Infrastructure Investments

• Indigenous ELCC investments complement provincial-territorial investments and form an integral part of a Canada-wide ELCC system to increase the availability of high-quality, culturally-appropriate and accessible programs and services to Indigenous peoples
• Major infrastructure projects will help improve access to culturally-appropriate ELCC in underserved Indigenous communities. Investments can support new or replacement buildings, expanded seats at existing centres or other initiatives or partnerships that create new spaces or expand availability of programming to be inclusive of the diverse needs of families. Indigenous partners can also leverage their other IELCC funding streams to support infrastructure development under the Indigenous ELCC Initiative
• Examples of recent progress in this regard include new Métis child care centres in Manitoba and the Homalco Child Care Centre on the Homalco First Nation in British Columbia

If pressed on asymmetrical agreement with Quebec

Infrastructure funding is provided to the province of Quebec through an amendment to the 2021 to 2026 Canada-Quebec Asymmetrical Agreement on the Canada-wide ELCC component, and allows the province to fund additional services for families.

If pressed on how many new spaces will be created through the ELCC Infrastructure Fund

The Government of Canada has committed to work with provinces and territories to create 250,000 new regulated child care spaces across the country by March 2026. The ELCC Infrastructure Fund will support greater inclusivity within the existing Canada-wide target.

If pressed on access in rural and remote locations

• The Government of Canada recognizes the extra challenges faced by families with children living in rural or remote locations, including limited access to child care services
• During the study of Bill C-35 at HUMA, additional language was added to the "inclusion" Principle (Clause 7(1)c) to highlight unique challenges in rural and remote communities
• The Government of Canada is working with all provinces and territories to ensure increased access to high-quality, affordable, flexible, and inclusive child care for all children, no matter where they live. As the administration of ELCC is within provincial/territorial jurisdiction, provinces and territories have responsibilities over the development and implementation of expansion plans

If pressed on sufficiency of infrastructure investments for Indigenous ELCC

• Budget 2021 provided ELCC infrastructure investments for both urgent repairs and renovations and major infrastructure investments to support Indigenous communities. It also built upon the 2020 Fall Economic Statement enhancements which made Budget 2017 investments permanent and ongoing (for example, beyond 10 year profile) by including a 3% annual escalator to IELCC starting in 2027 to 2028
• Eligible activities will support increased access to culturally enriching and high-quality ELCC programs for underserved families and children. To achieve this goal, the Program Terms and Conditions enable maximum flexibility. For example, investments could support replacement of facilities, pre-construction planning and the purchase and acquisition of buildings or land, where needed
• This funding will begin to address capital needs related to ELCC and IELCC while distinctions-based community infrastructure plans are co-developed through a process led by Indigenous Services Canada

Funding^{Footnote 6}

• 2021 to 2026 Canada-wide Agreement signed July 23, 2021. Original funding announced: $41.7M.
• 2021 to 2025 Extension Agreement signed August 12, 2021. Original funding announced: $10.2M and an additional $2.5M in one-time workforce funding in 2021 to 2022.
• 2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 28, 2024. 3-year total funding: $7.7M. 4-year total funding: $10.5M

Affordability

Prior to the signing of the Canada-wide Agreement, Yukon had already implemented a $10-a-day child care system in April 2021 under Yukon government's universal Early Learning and Child Care (ELCC) program.

Access

Yukon has committed to the creation of 110 spaces by 2025 to 2026 and exceeded this target. Annual numbers related to spaces created will be finalized as part of the jurisdiction's requirement to provide Canada an annual report on results achieved.

Per Yukon's 2022 to 2023 annual progress report, Yukon created 165 new spaces in fiscal year 2022 to 2023.

Per the annual progress report in fiscal year 2021 to 2022, Yukon created 129 new spaces in fiscal year 2021 to 2022.

Quality

Implementation

Yukon has held 3 Implementation Committee meetings since 2022 (November 2022, April 2023 and August 2024).

Most recent discussions focussed on progress towards access, quality, Indigenous ELCC, as well as opportunities and challenges regarding infrastructure in rural and remote communities.

Funding

2021 to 2026 Canada-wide Agreement signed December 15, 2021. Original funding announced: $51.2M.

2021 to 2025 Extension Agreement signed August 9, 2021. Original funding announced: $10.3M and $2.6M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 28, 2024. 3-year total funding: $7.8M. 4-year total funding: $10.6M.

Affordability

On April 1, 2024, the Northwest Territories achieved $10-a-day child care (on average) leading to savings of up to $9,120 a year per child in regulated ELCC.

In September 2023, Government of Northwest Territories redirected 2023 to 2024 Canada-wide funding toward a temporary emergency relief measure to support families, providers and ECEs affected by wildfire evacuations. For the month of September, Government of Northwest Territories offered 100% of the Child Care Fee Reduction (CCFR) subsidy, instead of the 60% that is currently covered by the federal envelope.

In February 2023, the Government of the Northwest Territories announced an increase in the Child Care Fee Reduction subsidy to providers, who will receive 60% of their average fees subsidized by the territory effective April 1. This follows the March 2022 announcement where the Northwest Territories reduced child care fees by 50%, retroactive to January 1, 2022 ahead of the December 2022 target.

In the same month the Government of the Northwest Territories announced that licensed programs will be able to increase their fees by 2% to 6%, depending on the total fee rates being charged by that program for infant and preschool spaces, and by a flat rate of $10 per month for out-of-school, effective April 1, 2023. This responds to public outcry from operators displeased with the 2.3% fee cap imposed on operators wishing to receive Canada-wide funding.

Access

The Northwest Territories have committed to the creation of 300 spaces by 2025 to 2026.

Annual numbers related to spaces created will be finalized as part of the jurisdiction's requirement to provide Canada an annual report on results achieved.

The Northwest Territories' 2022 to 2023 annual progress report is not yet finalized.

Per its 2021 to 2022 annual progress report, the Northwest Territories have supported the creation of 70 new affordable licensed child care spaces during that fiscal year.

Quality

The Northwest Territories will be implementing changes to its legislation in October 2024, including a streamlined funding model, a certification process and an ECE wage grid.

In May 2023, legislative and regulatory amendments to streamline funding, reduce administrative burdens for program operators come into force.

In spring 2023, the Government of the Northwest Territories undertook engagement with Indigenous partners and stakeholders on the development of a certification process and a What We Heard report was produced to address the fact that there is no certification process in the territory. The Northwest Territories have committed to increase ECE certification to 30% by 2025 to 2026 and 60% by 2030 to 2031.

In October 2022, the Government of the Northwest Territories and the Government of Canada announced a $4.6 million investment in wage enhancements for ECEs between 2022 to 2023 and 2023 to 2024 to support recruitment and retention of educators. The 2-year transitional funding is intended to enhance wages for educators until the implementation of a wage grid in 2024 to 2025.

The Northwest Territories has also committed to increase opportunities for education and training, and professional learning opportunities.

Implementation

The Northwest Territories has held 4 Implementation Committee meetings since 2022 (December 2022, February 2023, October 2023 and July 2024). A fifth Implementation Committee meeting is scheduled for November 15, 2024.

Most recent discussions focussed on progress towards CWELCC targets, wages, certification process and funding mechanism.

Funding

2021 to 2026 Canada-wide Agreement signed January 23, 2022. Original funding announced: $66.1M.

2021 to 2025 Extension Agreement signed August 13, 2021. Original funding announced: $10M and $2.8M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 28, 2024. 3-year total funding: $8M. 4-year total funding: $10.9M

Affordability

On January 24, 2023, the Government of Nunavut and Canada announced that since the implementation of the $10-a-day care, families in Nunavut could save up to $55 per day for each child in care, when compared to previous rates or up to $14,300 per child per year.

On November 17, 2022, the Governments of Nunavut and Canada announced that preschool-aged children at licensed child care centres and licensed home day cares would be able to access child care for $10-a-day (fixed fee) as of December 1, 2022. Nunavut became the first jurisdiction to achieve the $10-a-day target under the Canada-wide system.

Access

Nunavut has committed to the creation of 238 spaces by 2025 to 2026. Annual numbers related to spaces created will be finalized as part of the jurisdiction's requirement to provide Canada an annual report on results achieved.

Per its annual report for 2022 to 2023, Nunavut supported the creation of 26 new affordable licensed child care spaces during that year.

Per its annual report for 2021 to 2022, Nunavut supported the creation of 6 new affordable licensed child care spaces during that year.

Quality

Nunavut launched the ELCC Wage Scale Program on October 1, 2023 to replace their current recruitment and retention fund that provides wage enhancements for ECEs. The optional wage scale recommends a minimum wage of up to $34.39/hour for ECEs and includes minimum wages for management, program support, and centre support staff.

Nunavut has also committed to support the expansion of a culturally relevant ELCC sector workforce through recruitment, retention, and additional training (including first aid) opportunities.

Additionally, in June 2023, Nunavut completed their ELCC Quality Framework through consultation with partners and stakeholders.

Implementation

Nunavut has held 5 Implementation Committee meetings since 2022 (June 2022, December 2022, June 2023, January 2024, and May 2024). Most recent discussions have focussed on space closures, infrastructure development, workforce challenges, the wage grid, and funding agreements.

Funding

2021 to 2026 Canada-wide Agreement signed July 8, 2021. Original funding announced: $3.2B.

2021 to 2025 Extension Agreement signed August 12, 2021. Original funding announced: $272.3M and an additional $48.8M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 20, 2024. 3-year total funding: $47.3M. 4-year total funding: $69.9M.

Affordability

To support its affordability goal of "working towards" a $10-a-day system, BC is: (1) expanding access to $10 per day child care sites through the conversion of existing child care spaces and facilities to the $10-a-day ChildCareBC program; and, (2) increasing fee reductions under its Child Care Fee Reduction Initiative (up to $900/month in savings for families in licensed child care).

On March 28, 2024, British Columbia announced that over 930 child care spaces were moving into the province's $10-a-day ChildCareBC program this spring, which will save families an average of $920 a month per child. These spaces mean the Province has met - and exceeded - its target of bringing the number of $10-a-day ChildCareBC spaces to 15,000 by this spring.

On February 9, 2024, British Columbia announced that more than 700 child care spaces move into the $10-a-day ChildCareBC program.

On January 31, 2023, British Columbia announced that an additional 725 child care spaces joined the $10-a-day ChildCareBC program in February 2023, bringing the number of spaces to more than 12,700 and helping families across the province save thousands of dollars per year.

On December 2, 2022, British Columbia announced that through a combination of child care fee reductions and the conversion of 10,500 spaces into $10-a-day spaces (increasing to 12,500 by early 2023), fees in the province were reduced by 50% on average.

Access

British Columbia has committed to the creation of 30,000 spaces by 2025 to 2026 and a total of 40,000 spaces by 2027 to 2028. In the first 2 years of the CWELCC Agreement, BC created 10,000 spaces through provincial and federal investments. Annual numbers related to spaces created will be finalized as part of the jurisdiction's requirement to provide Canada an annual report on results achieved.

As per British Columbia's 2022 to 2023 annual progress report, British Columbia supported the creation of 10,000 new spaces during fiscal years 2021 to 2022 to 2022 to 2023.

British Columbia adjusted its annual reporting 2021 to 2022 to 2022 to 2023 and as such a breakdown of spaces created is no longer accurate for 2021 to 2022. As a result, the 2022 to 2023 annual report reflects spaces created in both fiscal years.

Quality

British Columbia has committed to develop and implement a wage grid for ECEs. In December 2023, BC began the roll-out of its pilot project to test the implementation of a wag grid at 53 child care centers.

In October 2023, British Columbia announced 2 initiatives that will be supported with Canada-wide funding, namely a $2/hour expansion of the Early Childhood Educator Wage Enhancement and a new annual recognition grant of $2000 to $3000 for ECEs with specialized training.

In August 2023, British Columbia announced funding to support the translation of educational documents, such as school transcripts and course descriptions, into English to support certification.

In May 2023, British Columbia announced it was accelerating the expansion of early childhood education programs so more than 1,300 people will have the opportunity to access this education over the next 3 years, with public post-secondary spaces in BC expected to increase by approximately 50%.

In April 2022, British Columbia announced the expansion of the provincially-funded $4/hour wage enhancement to include all ECEs employed in ELCC facilities, including those in administrative roles / not directly working with children.

In February 2022, British Columbia announced ECE recruitment and retention initiatives, including bursaries, peer mentorship programs, inclusion support, etc.

Inclusion

On September 12, 2024 the Governments of Canada, British Columbia, along with the First Nation Leadership Council announced a tripartite Memorandum of Understanding on Early Learning and Child Care for First Nations in British Columbia.

On October 31, 2023, British Columbia announced $7.5 million in funding that will support the creation of a new child care centre which will provide inclusive and culturally relevant child care for 60 First Nations children in Prince Rupert.

On February 3, 2023, British Columbia announced additional investments in the Supported Child Development and Aboriginal Supported Child Development programs.

An additional investment of $31.8 million provided through British Columbia's Canada-wide and bilateral extension agreements will ensure children with support needs are receiving inclusive child care, and that more child care providers will be trained to provide these services.

Implementation

British Columbia held 5 Implementation Committee meetings since 2022 (July 2022, October 2022, September 2023, November 2023, July 2024). Most recent discussions focussed on stakeholder concerns over increasing ancillary fees, for-profit expansion, and the test phase of British Columbia's new Operating Funding Model (OFM).

Funding

2021 to 2026 Canada-wide Agreement signed November 14, 2021. Original funding announced: $3.8B.

2021 to 2025 Extension Agreement signed July 23, 2021. Original funding announced: $235M and $56M in one-time workforce funding in 2021 to 2022. Alberta signed a one-year extension to this Agreement on September 25, 2024, extending it through fiscal year 2025 to 2026 and raising the total notional funding to $300.9M.

2023 to 2024 to 2025 to 2026 ELCC Infrastructure Amendment signed March 27, 2024. 3-year total funding: $53M. 4-year total funding: $78.5M.

Affordability

Alberta achieved an average fee reduction of $15 a day as of January 1, 2024, which was announced on March 15^th, 2024. Alberta families can now save up to $13,700 annually per child in regulated child care with the Affordability Grant and subsidy combined. Prior to this, Alberta achieved an average fee reduction of 50% on January 1, 2022. Families earning under $180,000 benefit from subsidies in addition to the Affordability Grant.

Access

Alberta has committed to the creation of 68,700 spaces by 2025 to 2026: 42,500 not-for-profit and up to 26,200 for-profit spaces.

Alberta publicly announced the creation of 11,700 new spaces during the 2023 to 2024 fiscal year as part of their Annual Report for the Ministry of Jobs, Economy, and Trade (page 29), for a total of 25,355 new spaces created since November 2021 (37% of their target of 68,700 new spaces by March 2026).

Per Alberta's 2022 to 2023 Canada-wide Annual Progress Report, the most recent Canada-wide Annual Progress Report, Alberta created 13,655 new affordable child care spaces between November 2021 and March 31, 2023.

Quality

Implementation

Alberta has held 4 Implementation Committee meetings since 2022 (June 2022, December 2022, September 2023 and October 2024). Discussions focused on maintaining affordability; workforce challenges; and barriers to inclusive child care (particularly for children with enhanced needs).

The Government of Canada continues to engage with Alberta of the Cost Control Framework, For-Profit Expansion Plan and ELCC Funding Formula. The Cost Control Framework and For-Profit Expansion Plan, announced January 31, 2023, applies to both not-for-profit and for-profit operators to ensure the sound and reasonable use of public funds under the Canada-Alberta Canada-wide Early Learning and Child Care Agreement. This also allows for a total of 22,500 for-profit spaces to be created in addition to the 3,700 for-profit and 42,500 not-for-profit spaces previously committed to in the Canada-Alberta Canada-wide Agreement, for a total of 68,700 new child care spaces by March 2026. In July 2024, Alberta completed a survey of ELCC operators to collect information on the true cost of child care via a set of cost questionnaires which will inform the design of their funding formula.

Funding

2021 to 2026 Canada-wide Agreement signed August 13, 2021. Original funding announced: $1.1B.

2021 to 2025 Extension Agreement signed August 13, 2021. Original funding announced: $68.5M and $17.2M in one-time workforce funding in 2021 to 2022. Saskatchewan signed a 1-year extension to this Agreement on August 6, 2024, extending it through fiscal year 2025 to 2026 and raising the total notional funding to $87M.

2023 to 2026 ELCC Infrastructure amendment signed March 26, 2024. 3-year total funding: $19,1M. 4-year total funding: $27.7M.

Affordability

Saskatchewan achieved $10-a-day (fixed fee) licensed child care under the Canada-wide system effective April 1, 2023, with families paying $217.50 per month.

Access

Saskatchewan has committed to the creation of 28,000 spaces by 2025 to 2026. Saskatchewan's space expansion target requires a 158% increase against their baseline.

Based on recent news releases from August 29, 2024 and September 9, 2024, Saskatchewan has announced a total of 11,000 new child care spaces.

Per Saskatchewan's 2022 to 2023 Canada-wide Annual Progress Report, the most recent finalized report, Saskatchewan has created 5,217 new affordable child care spaces.

Quality

Saskatchewan has announced the following wage increases for ECEs:

• $1 to $5/hour (November 2021, September 2022 and September 2023)
• on September 29, 2023, Saskatchewan announced ECE wage increases of $1.50 to $2.50/hr depending on certification level effective October 1, 2023, in total, ECEs can receive up to $7.50/hr in wage increases

In addition, Saskatchewan has provided the following supports for the ELCC workforce:

• one-time grant to regulated and operational child care centres to assist them in recruiting and retaining qualified ECEs (March 2022)
• creation of 3 new Early Years Family Resource Centres in the communities of Lloydminster, Swift Current and Weyburn (March 2022)
• free training and tuition supports for the ELCC workforce through partnerships with Collège Mathieu, Saskatchewan Indian Institute of Technologies (SIIT) and Saskatchewan Polytechnic (Sask Polytech) (August 2022)
• grant funding for preventative maintenance and repair of facilities and for the purchase of equipment and materials to encourage outdoor physical activity and winter play (January 2023)
• funding to increase access to training and professional development opportunities for ECEs (June 2023)

Inclusion

In their 2024 to 2025 Action Plan under their Extension Agreement, Saskatchewan committed $5.152M to support Inclusivity by:

• supporting 392 spaces in their Early Learning Intensive Support Program (ELIS), for children with significant disabilities
• continuing operating funding for 2 ELCC programs for deaf and hard of hearing children: Children Communicating and Connecting in the Community

Ongoing support for children with additional needs:

• through Enhanced Accessibility Grants (under both ELCC Agreements), Saskatchewan provides families with vulnerable children and children with disabilities child care support of up to $2,000/month
• Saskatchewan also offers inclusion grants covering:
  • skills training for care givers of medically complex children under 6
  • developmental consultant roles
  • child care facilitator positions in Early Years Family Resource Centres

Implementation

Saskatchewan has held 4 Implementation Committee meetings since 2022 (June 2022, October 2022, May 2023 and June 2024).

Most recent discussions focussed on positive feedback, particularly on the issues of affordability and increased wages for ECEs, as well as, concerns related to the ELCC workforce, particularly in relation to training and retention, the need for Saskatchewan to release a public wage grid, and the plans for rapid space expansion.

Funding

2021 to 2026 Canada-wide Agreement signed August 9, 2021. Original funding announced: $1.2B.

2021 to 2025 Extension Agreement signed February 22, 2022. Original funding announced: $78.8M, and $19.2M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 ELCC Infrastructure amendment signed March 26, 2024. 3-year total funding: $20.9M. 4-year total funding: $30.4M.

Affordability

Manitoba achieved $10-a-day child care (fixed fee) effective April 2, 2023 for children ages 6 and under in regulated care - 3 years ahead of the broader Canada-wide objective. Note that the inclusion of 6-year-olds is unique among all PTs and reflects the terms of Manitoba's Canada-wide Agreement and their broader education system.

Access

Manitoba has committed to the creation of 23,000 spaces by 2025 to 2026.

Per Manitoba's space creation webpage, as of August, 2024, Manitoba had committed funding for the creation of 9,200 child care spaces for children 0 to 6, of which over 3,200 have opened.

Inclusion

On April 27, 2023, Manitoba announced funding to implement the Abecedarian approach at a centre - an evidence-based early childhood intervention that improves developmental and learning outcomes for children in high-risk communities. In 2023 to 2024 and 2024 to 2025, 3 additional child care programs will begin the implementation of the Abecedarian approach. Manitoba's 2023 to 2026 Canada-wide Action Plan includes dedicated funding toward Partnerships with Indigenous Governing Bodies, Inclusion workshops, and a Diversity and Inclusion Services Model.

Quality

On July 2, 2024, Manitoba announced changes to their Child Care Regulation to bring into force a 2.75% increase to the wage grid supplement provided to facilities, effective July 1, and a 5% increase to the base operating grants, retroactively effective April 1, 2024.

Manitoba introduced a wage grid for educators based on level of training and experience retroactive to July 1, 2022, and updated with annual increases effective July 2023, and July 2024. The province also announced tuition reimbursement for ECEs on October 27, 2022, and committed another $6 million in June 2023 to continue the successful ECE Tuition Reimbursement initiative until 2026.

Manitoba announced more than $30 million to create new opportunities for ECE education and professional development (June 2023); Manitoba announced one-time grant funding for 3 new quality enhancement grants: the Quality Early Learning and Environments Grant, the Innovative Recruitment and Retention Grant, and the Enhancing Diversity and Inclusion Grant (February 2023).

Implementation

Since 2022, Manitoba has hosted 3 Implementation Committee meetings (November 2022, June 2023, and June 2024), with a fourth meeting planned for December 5, 2024. Most recent conversations focussed on workforce challenges (recruitment, retention, valuation of the profession, educator wages), and inclusion challenges.

Funding

2021 to 2026 Canada-wide ELCC Agreement signed March 27, 2022. Original funding announced: $10.2B.

2021 to 2025 Extension Agreement signed August 13, 2021. Original funding announced: $764.5M and $150M in one-time workforce funding in 2021 to 2022. Amendment for the one-year extension to 2025 to 2026 is being negotiated with the province. 2025 to 2026 funding: $214.2M.

2023 to 2024 to 2025 to 2026 ELCC Infrastructure Amendment signed March 26, 2024. 3-year total funding: $135.1M. 4-year total funding: $201.9M.

Affordability

On August 15, 2024, Ontario announced that as of January 1, 2025, parent fees will be capped at $22 per day for children under the age of 6 in spaces enrolled in the Canada-wide ELCC system. Ontario also announced a new, cost-based funding approach for operators in the Canada-wide ELCC system. The new funding approach will be effective on January 1, 2025.

As of December 31, 2022, child care fees at licensed child care operators that have enrolled in the Canada-wide ELCC system have been reduced by an average of 50% (compared to 2020 levels).

Access

Ontario has committed to the creation of 76,700 spaces by March 31, 2026, and of 86,000 spaces by the end of 2026.

Annual numbers related to space creation will be provided as part of Ontario's annual report As of December 31, 2023, Ontario has publicly reported creating 25,500 Canada-wide ELCC spaces.

Quality

On November 16, 2023, Ontario released its Child Care Workforce Strategy. The strategy includes improvements in compensation for Registered ECEs, supports to promote entry into the profession, enhancements to opportunities for career advancement, and other measures to cut red tape and improve awareness of the value of the profession. Beginning in 2024, starting wages for Registered ECEs were raised to $23.86/hour, increasing to $25.86/hour by 2026. Supervisors and Home Child Care Visitors had their wages increased to $24.86/hour, increasing to $26.86/hour by 2026.

Inclusion

Space creation within the Canada-wide ELCC system in Ontario is guided by the province's Access and Inclusion Framework which requires that new spaces are created in communities with populations that need them most by focusing space creation in underserved service areas of the province where historically there has been low rates of space availability.

Implementation

Since 2023, the Implementation Committee has met bilaterally twice. A bilateral meeting did not take place in Spring 2024 as the committee completed a Program Review, between January and May 2024. Bilateral discussions have included enrollment, funding guidelines, space creation, workforce, and inclusion. Officials are working to arrange the Fall 2024 bilateral meeting of the Implementation Committee, which is expected to take place in early December 2024.

The Implementation Committee has also held engagement sessions with stakeholders twice, with separate sessions offered in English and French. Stakeholder discussions focused on the ELCC workforce and on inclusion.

Ontario has also completed consultation sessions with the ELCC sector.

Funding

2021 to 2026 Asymmetrical Agreement on the Canada-wide ELCC component (Asymmetrical Agreement) signed August 5, 2021. Original funding announced: $6B.

2021 to 2025 Extension Agreement signed September 20, 2022. Total funding: $448M, and $90M in one-time workforce funding in 2021 to 2022.

One-year extension until 2025 to 2026 signed by Minister Sudds on October 30, 2024. Awaiting Quebec ministerial signatures. 2025 to 2026 funding: $122.7M.

2023 to 2026 ELCC Infrastructure Fund Amending Agreement signed March 28, 2024. 3-year total funding: $82M. 4-year total funding: $123M.

Implementation

No implementation committee, given the asymmetrical nature of the agreements between Canada and Quebec. However, as part of the negotiations on the Amending Agreement for the ELCC Infrastructure Fund in March 2024, a joint committee has been established to discuss files of common interest. The first meeting took place at the end of June 2024. Officials will meet next in mid-December 2024.

Access

Quebec does not have a space creation commitment. In the 2021 to 2026 Canada-Quebec Asymmetrical Agreement on the Canada-wide ELCC Component, the province indicates it "wishes to increase the number of subsidized spaces with reduced contribution by more than 30,000".

Quebec is not required to report on any targets.

Funding

2021 to 2026 Canada-wide ELCC Agreement signed December 12, 2021. Original funding announced: $492M.

2021 to 2025 Extension Agreement signed August 13, 2021. Original funding announced: $48.1M and $9.3M in one-time workforce funding in 2021 to 2022.

One-year extension until 2025 to 2026 signed on July 24, 2024. 2025 to 2026 funding announced: $13.4M.

2023 to 2024 to 2025 to 2026 ELCC Infrastructure Amendment signed March 28, 2024. 3-year total funding: $12.4M. 4-year total funding: $17.6M.

Affordability

New Brunswick achieved a 50% average fee reduction on June 1, 2022, 6 months ahead of schedule, and implemented a Standardized Parent Fee Grid that sets the fees operators can charge parents leading to savings of up to $3,600 per child per year. Their Parent Subsidy program has also been adapted to reflect the new low-fee model and will continue to support low- and middle-income families by further reducing out-of-pocket costs.

Access

New Brunswick has committed to the creation of 3,400 spaces by 2025 to 2026.

On July 9, 2024, the New Brunswick Minister announced that 3,400 spaces had been allocated, of which 1,825 are already opened and occupied. Annual numbers related to spaces created will be finalized as part of the jurisdiction's requirement to provide Canada an annual report on results achieved.

Per its annual report for 2022 to 2023, New Brunswick supported the creation of 791 new affordable licensed child care spaces.

Per its annual report for 2021 to 2022, New Brunswick supported the creation of 301 new affordable licensed child care spaces in that year.

Quality

On November 14, 2023, the Collège Communautaire du Nouveau-Brunswick (CCNB) announced that it now offers a new second year early childhood education program, which focuses on leadership and management of ELCC facilities.

On June 29, 2022, New Brunswick announced that inclusion support workers will receive an increase in hourly wages, matching their compensation with ECEs.

On November 1, 2022, New Brunswick implemented an ECE wage grid which operates as a wage floor; operators may choose to pay educators more than the amounts laid out in the grid. As of April 1, 2024, Level 1 ECE wages range from $22.79/hour to $25.35/hour, and Entry Level ECE wages range from $16.47/hour to $18.54/hour.

Implementation

2 Implementation Committee meetings took place in 2022 to 2023 (May 6, 2022, and December 9, 2022), as well as in 2023 to 2024 (June 9, 2023, and December 15, 2023), and one in 2024 to 2025 (May 22, 2024). Discussions focused on progress towards achieving the objectives of the Canada-wide ELCC Agreement, including affordability, access, quality, the Early Childhood Educator workforce, inclusion and diversity initiatives.

Funding

2021 to 2026 Canada-wide ELCC Agreement signed July 13, 2021. Original funding announced: $605M.

2021 to 2025 Extension Agreement signed July 9, 2021. Original funding announced: $58M and $10.9M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 27, 2024. 3-year total funding: $13.8M. 4-year total funding: $19.8M.

Affordability

Nova Scotia achieved an average 50% reduction in child care fees on December 31, 2022 leading to savings of up to $6,000 per child per year.

Access

Nova Scotia has committed to the creation of 9,500 spaces by 2025 to 2026.

Annual numbers related to spaces created will be finalized as part of the province's requirement to provide Canada an annual report on results achieved. Nova Scotia publicly reports the number of spaces created. As of September 30, 2024, the province has opened 6,206 spaces.

Per its annual report for 2022 to 2023, Nova Scotia supported the creation of 1,691 new affordable licensed child care spaces in that year.

Per its annual report for 2021 to 2022, Nova Scotia was unable to support the creation of affordable licensed child care spaces, however an Expression of Interest process was launched, and 45 funding agreements were put in place to expand ELCC spaces in centres, family homes, and before-and-after school care.

Quality

Nova Scotia more than doubled the daily funding amount for infant spaces to $10/day for both centres and family homes, as announced in February 2023. On May 20, 2022, Nova Scotia launched the Minister's ELCC Engagement Table, to provide direct input and guidance on next steps in the province's plan to transform child care.

On October 11, 2022, a new wage scale for ECEs was announced, which included a wage increase in the range of 30% for most of the 2,600 ECEs, retroactive to July 4, 2022. ECEs received a 3% wage increase on April 1, 2023, and a further increase on April 1, 2024. Future raises will be in line with public sector wage increases. On December 20, 2023, Nova Scotia announced a pension and benefits plan for ELCC sector professionals; enrollment for the program began in May 2024, and will be ongoing throughout the year.

Implementation

The first Canada-wide ELCC Agreement Implementation Committee meeting in 2022 to 2023 took place on June 14, 2022, and the second took place on November 30, 2022. The first meeting for 2023 to 2024 took place on June 15, June 19, and August 25, 2023, for the bilateral, English stakeholder and French stakeholder sessions respectively. The second bilateral and stakeholder meetings for 2023 to 2024 took place on October 31, 2023, and November 4, 2023, respectively. The first bilateral meeting for 2024 to 2025 took place on June 7, 2024, and the stakeholder meeting was on June 8, 2024.

Discussions focused on progress towards achieving the objectives of the Canada-wide Early Learning and Child Care Agreement, including affordability, access, quality, the Early Childhood Educator workforce, and inclusion initiatives.

Not-For-Profit Transition: Nova Scotia intended to transform its entire ELCC sector to publicly delivered child care as part of the Canada-wide Action Plan. This transition was met with concerns from for-profit providers, who make up approximately 56 percent of providers. All existing child care operators were offered funding agreements for 2022 to 2023, 2023 to 2024 and 2024 to 2025, as in past years. Nova Scotia is now offering a voluntary transition program, for those operators that want to change their operating model and pursue expansion, or for closing centres so as to prevent the loss of spaces.

Funding

2021 to 2026 Canada-wide ELCC Agreement signed July 27, 2021. Original funding announced: $117.7M and $3.6M in one-time workforce funding in 2021 to 2022.

2021 to 2025 Extension Agreement signed August 12, 2021. Original funding announced: $16M and $3,6M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 27, 2024. 3-year total funding: $7.4M. 4-year total funding: $10.1M.

Affordability

On December 15, 2023, Prince Edward Island announced that they would achieve $10-a-day child care (fixed fees) in Early Years Centres and licensed Family Home Centres under the Canada-wide ELCC system, effective January 1, 2024.

On October 4, 2023, Prince Edward Island announced the province will be expanding 3 grants for Family Home Child Care Centres: the Family Home Centre Capital Grant; Family Home Centre Operational Grant; and Family Home Centre Licensing Incentive.

On December 16, 2022, Prince Edward Island announced that they reached the shared goal of a 50% reduction in child care fees by implementing $20-a-day parent fees, combined with provincial subsidies to eligible families and the expansion of the publicly-funded pre-kindergarten program.

On February 4, 2022, and again on November 8, 2022, Prince Edward Island announced new financial support available for people who provide child care in their home and want to be licensed to operate as a family home centre.

Access

Prince Edward Island has committed to the creation of 452 spaces by 2025 to 2026.

Annual numbers related to spaces created will be finalized as part of the province's requirement to provide Canada an annual report on results achieved.

Per its annual report for 2022 to 2023, Prince Edward Island supported the creation of 459^{Footnote 7} new affordable licensed child care spaces from 2021 to 2022 to 2022 to 2023.

Prince Edward Island revised the number of spaces created for 2021 to 2022 in its 2022 to 2023 annual report.

Quality

On January 10, 2024, Prince Edward Island announced updates to regulations allowing for increased enrollment, modernized titles for staff certification levels and added pathways to obtain certification, as well as changes to prevent delays in filling vacancies at centres.

On October 4, 2023, Prince Edward Island announced expansions to 3 grants for Family Home Child Care Centres over the next 2 years, which will help to promote licensing, and improve the quality, affordability and accessibility of licensed home-based child care.

On August 21, 2023, Prince Edward Island announced wage increases for ECEs and staff at designated Early Years Centres, effective October 1, 2023. Prince Edward Island also announced that the province will develop a defined contribution pension plan.

On December 16, 2022, Prince Edward Island announced wage increases for staff at Early Years Centres, including for ECEs, effective October 1, 2022.

On November 8, 2022, Prince Edward Island announced further support for licensed home child care centres in the form of grants and incentives to reduce parent fees, fund wages and professional development, and purchase supplies.

On February 18, 2022, Prince Edward Island launched a new one-time Return to the ECE Profession Grant of $5,000, to support the early childhood workforce and to help recruit ECEs back to the sector.

Implementation

The first Canada-wide ELCC Agreement Implementation Committee meeting in 2022 to 2023 took place on August 30, 2022, and the second took place on November 29, 2022. The first meeting for 2023 to 2024 took place on June 13, 2023, and the second meeting took place on December 18, 2023. The first meeting for 2024 to 2025 took place on June 10, 2024. Discussions focused on progress towards achieving the objectives of the Canada-wide ELCC Agreement, including affordability, access, quality, the Early Childhood Educator workforce, and inclusion initiatives.

Funding

2021 to 2026 Canada-wide ELCC Agreement signed July 28, 2021. Original funding announced: $306M.

2021 to 2025 Extension Agreement signed July 28, 2021. Original funding announced: $35M and $6.5M in one-time workforce funding in 2021 to 2022.

2023 to 2024 to 2025 to 2026 Infrastructure Amendment signed March 28, 2024. 3-year total funding: $9.8M. 4-year total funding: $13.7M.

Affordability

Newfoundland and Labrador implemented $10-a-day (fixed fee) for regulated child care effective January 1, 2023.

Access

To support the creation of regulated child care spaces, the province has expanded funding under the Child Care Capacity Initiative Program and the Family Child Care Capacity Initiative, and funding has also been expanded to Family and Child Care Connections to increase capacity for regulated child care providers caring for children in their own homes in all regions of the province.

Newfoundland and Labrador has committed to the creation of 5,895 spaces by 2025 to 2026.

Newfoundland's 2022 to 2023 Annual Report is not completed.

Per its annual report for 2021 to 2022, Newfoundland and Labrador supported the creation of 109 new affordable licensed child care spaces in that fiscal year.

Newfoundland and Labrador publicly reports the number of spaces created. As of April 17, 2024, the province indicated that there are over 1,500 child care spaces created since January 2023 in Newfoundland and Labrador. Moreover, there are an additional 2,206 early learning child care spaces in various stage of development in the province.

Quality

On June 13, 2024, Newfoundland and Labrador announced the signature of a Memorandum of Understanding (MoU) between the Department of Education, the South Korean Ministry of Education and the College of the North Atlantic. Eligible Korean students can participate in an early learning childhood education work placement program in Newfoundland and Labrador.

On May 28, 2024, Newfoundland and Labrador announced its commitment to introduce a medical benefits program for early childhood educators working in regulated child care services that participate in the Operating Grant Program.

On February 9, 2024, Newfoundland and Labrador announced that as of April 1, 2024, the minimum enrolment threshold will increase (from 70% enrolment to 90% enrolment) for regulated child care centres participating in the Operating Grant Program. Newfoundland and Labrador also announced a Rural and Remote Allowance (an additional 10% of their operating grant funding) for regulated child care services in rural and remote areas of the province who participate in the Operating Grant Program.

On January 8, 2024, Newfoundland and Labrador released a report outlining a review of the Operating Grand Program for child care services in Newfoundland and Labrador.

On September 13, 2023, Newfoundland and Labrador announced an Early Childhood Educator Recruitment and Retention Grant to provide funding to recruit and retain Level Ⅰ to Ⅳ ECEs to become certified and work in regulated child care services.

On August 23, 2023, Newfoundland and Labrador announced that a bonus of $5,178 has been created, effective April 1, 2023, to support recruitment and retention of certified francophone ECEs.

As of August 15, 2022, Newfoundland and Labrador's Early Childhood Learning Framework (Navigating the Early Years) is a requirement in legislation.

Newfoundland and Labrador implemented an ECE Wage Grid on April 1, 2023, retroactive to January 1, 2023. The wage grid has a base rate of $25 an hour for Level Ⅱ ECEs who hold a 2-year diploma, which is the starting rate for a new graduate.

On July 12, 2022, Newfoundland and Labrador announced a new Early Childhood

Education Needs-Based Incentive Grant to provide eligible students in approved programs with non-repayable grants of up to $10,000.

Newfoundland and Labrador established an ELCC Minister's Advisory Committee in February 2022.

Inclusion

On August 9, 2024, Newfoundland and Labrador announced new non-standard hours of care trial to support more inclusive child care for the province. Beginning in fall 2024, this initiative will provide funding to family child care services to trial up to 13 hours of extended daytime child care or up to 13 hours of overnight child care. The Province also provided updates on initiatives to support the construction and renovation of over 200 child care spaces for health care workers in St. John's, Corner Brook, Bonavista, Happy-Goose Bay, and Wabush.

Implementation

The first Canada-wide ELCC Agreement Implementation Committee meeting in 2022 to 2023 fiscal year took place on July 26, 2022, and the second took place on November 16, 2022. The first meeting for 2023 to 2024 took place on June 21, 2023.

The second bilateral and stakeholder meetings for 2023 to 2024 fiscal year took place on December 11 and 12, 2023, respectively. The first meeting for 2024 to 2025 took place on May 30, 2024. Discussions focused on progress towards achieving the objectives of the Canada-wide Early Learning Child Care Agreement, including access, quality and inclusion initiatives.

If pressed on changing immigration policies

• The Government of Canada recognizes diversity as a strength of the early childhood educator workforce, which includes many immigrants and non-permanent residents
• Strengthening the ELCC workforce is critical to supporting access to high-quality, affordable, flexible, and inclusive ELCC
• While the ECE workforce lost almost 50,000 workers as a ersult of the pandemic, employment levels have since grown steadily and 37,600 workers have joined or rejoined the workforce as of September 2024

If pressed on specific measures supported by the Canada-wide ELCC Agreements to address workforce challenges, please refer to Annex A, which contains a breakdown of actions taken by jurisdiction.

Jurisdiction

If pressed on Bill C-322

• If passed, the National Framework for a School Food Program Act would mandate the Minister of Employment and Social Development, in consultation with the Minister of Health, provincial governments, Indigenous governing bodies, and other relevant stakeholders, to develop a national framework to establish a school food program
• As work progresses on implementing the National School Food Program, and if Bill C-322 is passed, the Government of Canada will work to align these pieces and towards the broader goal of ensuring that children have access to the nutritious food they need to grow and learn

If pressed on actions taken to make life more affordable

• Budget 2024 will continue to support Canadians and build an economy that helps every generation get ahead by investing housing, affordable child care, in school food for children and lowering everyday costs
  • the Government announced a series of measures to build more homes, make it easier to rent or own a home and help Canadians who can't afford a home
  • measures to build more affordable child care spaces include launching a new Child Care Expansion Loan Program, with $1 billion in low-cost loans and $60 million in non-repayable grants for public and not-for-profit child care providers to build new spaces and renovate their existing child care centres, among other investments
  • the Government of Canada committed $1 billion over 5 years in federal funding to create a National School Food Program, to provide up to 400,000 more kids healthy meals, helping them learn, grow and reach their full potential.
  • the Government launched a new Canada Disability Benefit with $6.1 billion over 6 years, and $1.4 billion ongoing, to supplement provincial and territorial benefits, increasing the financial well-being of over 600,000 working-age persons with disabilities. This proposed benefit would provide a maximum benefit of $2,400 per year for low-income, working-age persons with disabilities, and indexed to inflation
  • the Government will invest $1.5 billion over 5 years in the new National Pharmacare Plan. This first phase will ensure the effective roll-out of pharmacare, while providing immediate support for the health care needs of women and covering lifesaving diabetes medication

A. Voted Appropriations

1. Funding to establish a National School Food Program (Budget 2024) - $77.5 million

Budget 2024 announced funding for a National School Food Program, providing $1.0 billion over 5 years, starting in 2024 to 2025, to ESDC, Indigenous Services Canada (ISC), and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC). ESDC will receive $678.8 million to work with the provinces, territories (PTs) and Indigenous partners to help expand and enhance existing programs starting this school year.

The department is requesting $7.4 million in voted funding authorities as part of the Supplementary Estimates (B) for the 2024 to 2025 fiscal year. Also, a statutory appropriation in the Budget Implementation Act allowed ESDC an early access to $70.1 million of Year 1 funding before the Supplementary Estimates (B) Vote, enabling timely agreements and fund transfers to PTs for a 2024 to 2025 school year launch.

ESDC is requesting authority to include $5,368,685 in Vote 1 (Operating expenditures, excluding Employee Benefit Plans (EBP) costs of $536,848) and $2,019,934 in Vote 5 (Grants and Contributions) to establish the National School Food Program as part of the 2024 to 2025 Supplementary Estimates (B). The estimated statutory forecast of $70.1 million is included for informational purposes.

2. Funding to stabilize information technology to support program delivery - $31.1 million

ESDC provides billions of dollars in direct benefits to millions of Canadians every year. ESDC's information technology (IT) systems that enable the department's service delivery are at risk of failure due to years of underfunding and lack of sustained investment.

Recognizing the need to stabilize and remediate ESDC's IT system, the Government of Canada approved, within 2020 and 2022 off-cycle decisions, $761.2 million for ESDC's Technical Debt Remediation Initiative to stabilize aging information technology (IT) systems.

The total funding authorities requested in Supplementary Estimates (B) for 2024 to 2025 for this initiative is $133.9 million (excluding EBP), of which $31.1 million is sourced from the Consolidated Revenue Fund (CRF), $14.4 million from the Canada Pension Plan (CPP) and $88.4 million from the Employment Insurance (EI) Operating Account. This funding is required to improve network performance, availability and recoverability of critical IT applications, to stabilize of departmental IT systems, and for aging applications.

ESDC is requesting authority to include $31,057,189 in Vote 1 (Operating expenditures, excluding EBP costs of $3,805,668) to continue stabilizing IT systems to support program delivery as part of the 2024 to 2025 Supplementary Estimates (B).

3. Funding for the Foreign Credential Recognition Program targeting the residential construction and health care sectors (Budget 2024) - $24.8 million

Budget 2024 announced $50.0 million over 2 years, for the Foreign Credential Recognition (FCR) Program, to support internationally trained professionals in the residential construction and health sectors. This funding aims to develop and strengthen Canada's foreign credential assessment and recognition capacity, improve labour market integration, and support interprovincial labour mobility.

The FCR Program will invest in projects that complement provincial and territorial activities, and initiatives by regulatory bodies and other organizations that are national in scope and fill FCR programming gaps. Since 2015, the FCR Program has invested nearly $270 million in 115 projects to support internationally trained professionals. This additional funding builds on investments already made by the FRC Program in the residential construction and health sectors and other sectors.

ESDC is requesting authority to include $910,319 in Vote 1 (Operating expenditures, excluding EBP costs of $211,538) and $23,846,804 in Vote 5 (Grants and Contributions) for the Foreign Credential Recognition Program targeting the residential construction and health care sectors as part of the 2024 to 2025 Supplementary Estimates (B).

4. Funding for the Migrant Worker Support Program (Budget 2024) - $20.0 million

Budget 2024 announced $40.9 million over 2 years, to extend the Migrant Worker Support Program (MWSP) for an additional 2 years, starting in 2024 to 2025.

The MWSP supports temporary foreign workers in learning about and exercising their rights in Canada by funding community organizations, including Migrant Worker Support Organizations, that provide essential services. This aligns with the Temporary Foreign Worker Program's worker protection goals, and the departmental objective of fostering an inclusive, efficient labour market.

The department is requesting $20.0 million in the Supplementary Estimates (B), for 2024 to 2025. This funding will allow ESDC to continue to support these organizations in delivering migrant worker-centric programs and services, such as on-arrival orientation, referral services at major airports, and direct community supports.

ESDC is requesting authority to include $2,045,970 in Vote 1 (Operating expenditures, excluding EBP costs of $420,955) and $17,944,026 in Vote 5 (Grants and Contributions) to renew the Migrant Worker Support Program as part of the 2024 to 2025 Supplementary Estimates (B).

5. Funding for the Supports for Student Learning Program (Budget 2024) - $17.5 million

Budget 2024 announced $67.5 million over 3 years for the Supports for Student Learning Program (SSLP), starting in 2024 to 2025.

The department is requesting $17.5 million in the Supplementary Estimates (B), for the fiscal year 2024 to 2025, to renew support for Indspire and Pathways to Education Canada, enabling underrepresented youth who are at risk of disengaging from education to continue benefiting from a comprehensive range of evidence-based afterschool and student supports.

Last year, Indspire and Pathways to Education Canada supported nearly 15,000 low income and Indigenous students. These supports are targeted to youth who face the greatest socioeconomic and systemic barriers. Investing in tailored services that help youth graduate is proven to help youth succeed in the job market and contribute to Canada's economy.

ESDC is requesting authority to include $17,500,000 in Vote 5 (Grants and Contributions) to renew student and afterschool supports under the SSLP as part of the 2024 to 2025 Supplementary Estimates (B).

6. Funding for government advertising programs - $3.8 million

To support the 2024 to 2026 Advertising Plan and the 2023 Fall Economic Statement, ESDC requests $3.8 million in 2024 to 2025 and $4.0 million in 2025 to 2026 for 3 campaigns: Services for Seniors, Inclusive Workplaces, and Helping Youth Build Their Future. These campaigns align with Budgets 2023 and 2024 goals, including disability employment, retirement support, and youth employment.

The $3.8 millions of funding requested in the Supplementary Estimates (B) for the year 2024 to 2025 will support the Services for Seniors advertising campaign. This campaign will promote programs and services related to seniors.

The government is committed to making life more affordable for Canadians through enhancements to the Old Age Security (OAS), the Canada Pension Plan (CPP), and the Guaranteed Income Supplement (GIS). This will allow more seniors to enjoy the comfortable and dignified retirements that they worked for and deserve. The advertising campaign will help increase awareness and knowledge of government retirement programs and services among adults aged 50 to 65.

ESDC is requesting authority to include $3,750,000 in Vote 1 (Operating expenditures) for advertising campaigns promoting Services for Seniors as part of the 2024 to 2025 Supplementary Estimates (B).

7. Funding for community‑delivered financial help services under the Social Development Partnerships Program (Budget 2024) - $1.4 million

Budget 2024 announced $60.0 million over 5 years to Prosper Canada, starting with $1.4 million in fiscal year 2024 to 2025, to expand community-delivered financial help services. This initiative aims to assist one million low- to moderate-income Canadians access nearly $2.0 billion in unclaimed tax and benefits through the Social Development Partnerships Program (SDPP).

Prosper Canada will work with partners to provide advice, tools, and information to build financial security. Key activities include establishing Regional Financial Help Hubs to distribute funds to local organizations across Canada, providing capacity development and training through expert-led organizations, and delivering sub-funding and evaluation efforts. This funding supports the Government of Canada's goals to enhance the quality of life and promote the financial security.

ESDC is requesting authority to include $1,430,000 in Vote 5 (Grants and Contributions) for Community‑delivered financial help services under the SDPP as part of the 2024 to 2025 Supplementary Estimates (B).

8. Funding for the Benefits Delivery Modernization - $1.2 million

The Benefits Delivery Modernization (BDM) Programme is a multi-year cross-functional initiative designed to enhance ESDC's delivery of government core benefits by improving digital access and centralizing benefits administration.

The Benefits Delivery Modernization (BDM) Programme requests the reprofile of $22.0 million unused funding from fiscal year 2023 to 2024 to fiscal year 2024 to 2025. This includes $19.8 million for EI, $0.4 million for CPP, and $1.2 million for CRF.

The requested funding is required to ensure continued operations and developments for Service Delivery Network (SDN) and the Integrated Channel-Common Interface (ICCI) projects, which are critical for seamless benefits processing across EI, OAS and CPP. This initiative responds directly to the 2022 Strategic Assessment recommendations led by Canada's Chief Information Officer (CIO), aligning BDM with the government-wide modernization efforts. This includes integrating cloud solutions, digital access tools, and service management frameworks to enhance user experience across multiple benefits.

ESDC is requesting authority to include $1,163,353 in Vote 1 (Operating expenditures) for BDM Programme - CBD as part of the 2024 to 2025 Supplementary Estimates (B).

9. Funding for the Skills for Success Program - $0.8 million

Budget 2021 committed $298.0 million over 3 years for Skills for Success (SFS) program launched in 2021, replacing ESDC's Literacy and Essential Skills program to provide skills training for up to 90,000 Canadians. The current Skills for Success agreement with the Government of Yukon ended in June 2024.

The department is requesting the reprofile of unused funding from the year 2023 to 2024 to the year 2024 to 2025 to support a budget extension to the agreement and provide the Government of Yukon with the opportunity to complete various pre-planned skills and employment activities, such as the development of training and assessment tools and their deployment in the Government of Yukon's employment stills training plan; and develop a sustainability plan for the results achieved through the initial project phase.

ESDC is requesting authority to include $800,000 in Vote 5 (Grants and Contributions) for these projects as part of the 2024 to 2025 Supplementary Estimates (B).

10. Funding to strengthen retirement savings for personal support workers (Budget 2023) - $0.6 million

Budget 2023 announced up to $50.0 million over 5 years to develop and test innovative retirement savings solutions for personal support workers (PSWs) without workplace retirement security coverage.

This funding will support pilot projects that provide retirement savings incentives to personal support workers who to not have workplace retirement security coverage. The program will allow the federal government to test different parameters to incentivize saving for retirement and determine which approach works best. The incentives are expected to help participating personal support workers improve their financial security and could help with their retention in the long-term care sector.

The $0.6 million in funding authorities requested for 2024 to 2025 will support ESDC's operational costs for the launch of the program.

ESDC is requesting authority to include $626,292 in Vote 1 (Operating expenditures) to strengthen retirement savings for PSWs as part of the 2024 to 2025 Supplementary Estimates (B).

11. Funding for the creation of a National Volunteer Action Strategy under the Social Development Partnerships Program (Budget 2024) - $0.4 million

Budget 2024 announced $0.4 million in contribution funding for the fiscal year 2024 to 2025 to support Volunteer Canada (VC) and the development of a National Volunteer Action Strategy (NVAS), under the Social Development Partnerships Program (SDPP) - Children and Families component.

This funding will enable VC to conduct further research, expand stakeholder engagement, and coordinate the NVAS project, to ensure it effectively addresses emerging challenges, enhances volunteer experiences and strengthens community well-being through this strategy.

ESDC is requesting authority to include $400,000 in Vote 5 (Grants and Contributions) for the creation of a NVAS under the SDPP as part of the 2024 to 2025 Supplementary Estimates (B).

B. Transfers

12. From various organizations to the Department of Employment and Social Development to support Policy Horizons Canada - Increase of $0.5 million

Policy Horizons Canada (PHC), as the Government of Canada's Center of Excellence in Foresight, plays a strategic role in empowering the Government of Canada with a future-oriented mindset and outlook to strengthen decision making. Though administratively housed within ESDC, PHC's broad mandate is reflected through the Privy Council Office as co-chair of its steering committee. To support its mandate, 4 organizations (Communications Security Establishment, Health Canada, Natural Resources Canada, and Innovation, and Science and Economic Development Canada) have agreed to transfer funds to ESDC in 2024 to 2025.

ESDC is requesting authority to include a transfer of $500,000 in Vote 1 (Operating expenditures) from these 4 organizations to ESDC to support PHC as part of the 2024 to 2025 Supplementary Estimates (B).

13. From the Department of Foreign Affairs, Trade and Development to various organizations to adjust funding previously provided for departmental staff located at missions abroad - Increase of $54.5 thousand

ESDC Labour program has formally initiated the abolition of 2 positions at the Canadian Embassy in Mexico. The common service costs previously financed by ESDC for Labour employees stationed in Mexico City under CUSMA have been transferred back to ESDC. This adjustment is necessary to account for the funds initially provided to support departmental staff at missions abroad.

ESDC is requesting authority to include $54,455 in Vote 1 (Operating expenditures) to adjust funding for these staff positions as part of the 2024 to 2025 Supplementary Estimates (B).

14. From the Department of Employment and Social Development to the Department of Indigenous Services for the Indigenous Early Learning and Childcare Transformation Initiative - Decrease of $28.8 million

Under the Indigenous Early Learning and Childcare (IELCC) Initiative, Indigenous partners can request funding advances through existing agreements with federal departments, including ESDC, ISC, the Public Health Agency of Canada (PHAC), and CIRNAC, to deliver IELCC programs.

Under this Initiative, Indigenous partners are at the forefront of decision-making on funding allocations, plans and priorities and have the flexibility to request that some, or all, of their funding for Early Learning and Child Care be advanced through agreements with any of the 4 federal partner departments.

First Nations partners in the Atlantic region, Ontario, and Alberta, have requested to receive a selection of their 2024 to 2025 Indigenous ELCC funding through their funding agreements with Indigenous Services Canada. As a result, the department is requesting the authority to transfer $28.8 million from ESDC to ISC.

ESDC is requesting authority to include $28,787,261 in Vote 5 (Grants and Contributions) for ISC under the IELCC as part of the 2024 to 2025 Supplementary Estimates (B).

C. Statutory Budgetary Authorities

15. Contributions to employee benefit plans - Increase of $5.1 million

Contributions to employee benefit plans include costs to the government for the employer's matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.

The increase of $5,101,045 is directly attributable to the Vote 1 (Operating expenditures) funding being requested through the Supplementary Estimates (B) for the voted appropriations items presented in Section A (Items 1, 2, 3, 4, and 11). The total EBP for each item is as follow:

• funding to stabilize information technology to support program delivery ($3,805,668)
• funding to establish a National School Food Program ($536,848)
• funding for the Migrant Worker Support Program ($420,955)
• funding for the Foreign Credential Recognition Program targeting the residential construction and health care sectors ($211,538)
• funding to strengthen retirement savings for personal support workers ($126,036)

Supplementary Information for HUMA, December 3, 2024

Poverty line based on an absolute standard of the income needed to have a basic and modest standard of living

• The CFLIM-AT measures low income by comparing the incomes of individuals and families to each other. While this provides useful information about relative low income, it is closely linked to income inequality and does not directly address poverty. Poverty typically means not being able to afford essential goods and services needed for a basic standard of living
• In contrast, the MBM establishes poverty lines based on the total cost of a "basket" of essential goods and services, including food, shelter, clothing, transportation, and other necessities. These costs are calculated using the latest official Consumer Price Index data from Statistics Canada, ensuring they reflect changes to the costs of living across Canada each year. Unlike the measure used by Campaign 2000, the MBM is directly linked to Canada's evolving price and affordability contexts

Highly sensitive to regional variations across Canada

• Unlike the CFLIM-AT, which uses median national income as a benchmark and does not reflect the actual expenses people face in different parts of the country, the MBM adjusts for many regional cost differences. This ensures a more accurate picture of poverty across the highly diverse socioeconomic contexts within Canada, such as urban centres with their relatively higher housing costs and more rural areas where different expenditure priorities and needs are part of everyday life
• Currently, the MBM establishes thresholds for 53 different geographic regions in the provinces, including 19 major cities, and 13 geographic regions in Yukon, the Northwest Territories and Nunavut.

Subject to legislated comprehensive reviews on a regular basis

• The Poverty Reduction Act requires that the MBM be comprehensively reviewed, on a regular basis as determined by Statistics Canada, to ensure that it continues to reflect the up-to-date cost of a basket of goods and services representing a modest, basic standard of living in Canada. The third comprehensive review of MBM is currently underway
• These reviews allow the Government to regularly refine and reassess its approach to official poverty measurement, based on wide-ranging engagement with key stakeholders

Relies on the concept of disposable income as opposed to after-tax income

• The MBM calculates individuals' and families' disposable income by subtracting not only income taxes but also essential expenditures such as EI and CPP/QPP contributions, childcare expenses and direct medical expenses. It also accounts for the different types of housing tenure, such as owning a home with or without a mortgage or living in subsidized rental housing. This method is more precise than using after-tax income alone, which only accounts for the impact of income taxes

Based on a robust data source that allows for representative yearly measurement of poverty, including for many key vulnerable groups

• Official poverty rates based on the MBM are based on data from the Canadian Income Survey (CIS), a major survey administered annually by Statistics Canada. This survey is Canada's official data source for poverty statistics. The sample is statistically representative and allows for disaggregation of data for many key groups such as persons with disabilities, racialized persons, recent immigrants, children, and a wide range of family types
• Campaign 2000's latest report relies on T1 administrative data for its CFLIM-AT determination. However, this source does not allow for detailed year-to-year disaggregation as does the CIS. T1 data excludes persons who have not filed their income tax report for a given year or who are late in doing so. The report also relies on Census data to provide insights on key vulnerable groups, but Census data is only available every 5 years, whereas CIS data is updated annually