PACP Committee Binder: Appearance by the Deputy Minister of Employment and Social Development - November, 2025

Official title: Appearance by the Deputy Minister of Employment and Social Development, Standing Committee on Public Accounts (PACP), Study: Auditor General of Canada 2025 Report - Canada-Wide Early Learning and Child Care System, Date: November 27, 2025, 11:00 a.m. to 1:00 p.m.

On this page

1. Opening Remarks
2. Scenario Note
3. PACP Committee Member Biographies
4. Auditor General of Canada 2025 Report - Canada-Wide Early Learning and Child Care System
5. Management Response and Action Plan (MRAP)
6. ELCC Issue Note
   1. ELCC Key Figures
   2. Total Federal Investments 2021-2022 to 2025-2026
   3. Infographic - Indigenous ELCC Overview 2025-2026
   4. IELCC timeline of Federal Investments
   5. PT Auspice Ratios
   6. Additional Tables Spaces and Fees with Savings
   7. ELCC - IELCC MRAP Tracker

1. Opening remarks

Remarks for Paul Thompson, Deputy Minister of Employment and Social Development for an appearance before the Standing Committee on Public Accounts on Canada-Wide Early Learning and Child Care System

House of Commons

November 27, 2025

Check against delivery.

Mr. Chair, committee members,

Thank you for the invitation to speak today.

The Office of the Auditor General (OAG) plays an essential role in our democracy and the Government of Canada welcomes their report on the Canada-wide Early Learning and Child Care (ELCC) system.

I was pleased to see that the report captures the progress achieved under the Canada-wide ELCC system.

While the OAG concluded that my department supported improvements in ELCC and that most regulated early learning and child care spaces have become more affordable, I recognize that it also made some important recommendations.

I want to assure the committee today that my department is already working to address and implement the recommendations.

The vision for a Canada-wide early learning and child care system is for all families to have access to high-quality, affordable, flexible and inclusive early learning and child care no matter where they live.

In its report, the OAG found that families are seeing improvements in affordability.

They found that all provincial and territorial governments had reduced average out-of-pocket fees by 50% by December 2022 for regulated spaces part of the Canada-wide program.

As of March 2024, 5 provinces and 3 territories reported achieving an average fee of $10 per day. This brought the average fees paid throughout Canada for full time child care to approximately $16.50 a day according to the OAG.

However, the report also found that the target to create 250,000 new early learning and child care spaces by March 2026 was at risk.

The deadline for the space creation target is next year, and we continue to work with our provincial and territorial partners to achieve it.

When the Government of Canada announced its intention to create a Canada-wide early learning and child care system in 2021, it was clear there were 2 issues at the forefront: affordability and access.

As reflected in the Auditor General's report, our work with provinces and territories has already resulted in significant savings for families across the country, but increasing capacity through space creation has been moving at a slower pace.

What I think is important to note is that unlike fee reductions, which is just a question of funding, creating spaces takes time: it involves complex multi-year projects and the development and support of the workforce.

That is why in many cases provincial and territorial Action Plans reflect a gradual ramping up of space creation goals, with more spaces planned in the last 2 years of the agreements.

The Auditor General also identified that Employment and Social Development Canada`s (ESDC) reporting on the program has not been timely, in part due to the necessity to both receive and review information provided by provinces and territories.

Openness, transparency and accountability are guiding principles of the Government of Canada, and as Deputy Minister of ESDC, I agree with the Auditor General that proper data collection and reporting on the Canada-wide system is a vital part of ensuring that the program remains responsive to the evolving needs of families in Canada.

There is no question that more work is needed to improve our reporting practices, which is why we are in constant dialog with our partners to strengthen reporting and better communicate the progress on the Canada-wide ELCC system.

As an example, we have been co-developing results frameworks with First Nations, Inuit and Métis partners to improve how we measure outcomes of Indigenous ELCC.

Furthermore, in March 2024 the Canada ELCC Act received Royal Assent.

This legislation includes a requirement that the Minister deliver annual reports to Parliament on federal investments and the progress being made under a Canada-wide system.

I would like to thank the Auditor General, Karen Hogan, and her office for the report and recommendations, which is helping guide the work ESDC is undertaking to improve on the Canada-wide ELCC system.

Thank you.

-30-

2. Scenario note

The Standing Committee on Public Accounts (PACP), Auditor General of Canada 2025 Report - Canada-Wide Early Learning and Child Care System, November 27, 2025, 11:00 a.m. to 1:00 p.m.

Overview

The House of Commons Standing Committee on Public Accounts (PACP) has invited the Office of the Auditor General and the ESDC Deputy Minister, and his officials, to appear on its study of the Auditor General of Canada's 2025 Report - Canada-Wide Early Learning and Child Care System.

Committee Proceedings

• During this appearance, ESDC officials, the Auditor General, and her officials, will be afforded the opportunity to deliver opening remarks for 5 minutes. Following that, questioning will begin.
• The first round of questions will give 6 minutes each to the CPC, LPC and BQ, in that order.
• The second (and subsequent rounds) of questions allocate 5 minutes to the CPC and LPC, 2 and a half minutes to the BQ, and then 5 minutes to the CPC and the LPC.
• ESDC officials in attendance will be:
  • Paul Thompson, Deputy Minister of Employment and Social Development
  • Catherine Adam, Senior Assistant Deputy Minister of Income Security and Social Development (ISSD)

About the Audit

The OAG audit, which was tabled in Parliament on October 21, 2025, focused on whether Employment and Social Development Canada fulfilled its responsibilities to support early learning and child care across Canada. The audit found that as of March 2024, provincial and territorial governments reduced the average out‑of‑pocket fees for regulated child care spaces that received federal funding to approximately $16.50 per day across Canada. The audit found that not only are fewer spaces being created than anticipated, but those spaces may also not be equitably accessible to diverse or vulnerable families. The department did not collect sufficient information to analyze whether the implementation of provincial and territorial plans would provide equitable access, despite that objective having been set out in funding agreements. The department also lacked information to provide timely or comprehensive reports.

Parliamentary Environment

The Auditor General appeared before PACP on October 21, 2025, on the reports which were tabled on the same day. Other reports discussed at this meeting seemed to generate more interest to the Members, the ELCC report was not the immediate topic discussed by the opposition parties.

Conservative Party of Canada

• The CPC have long been advocating that parents, not the government, should have the choice in determining who will care for their children within their communities. They have criticized the cost of the program in light of rising inflation.
• Laila Goodridge, HUMA member and CPC critic for Social Development and Families, on October 22 at Question Period, questioned the government's capacity to follow through with the promise of creating adequate, affordable child care. Ms. Goodridge may be present for this hearing.

Bloc Québécois

The BQ's interest in the ELCC file is largely confined to questions on federal transfers and provincial jurisdiction.

3. Committee Membership and Biographies

Standing Committee on Public Accounts (PACP)

Mandate of the Committee

• When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings. The Committee also reviews the federal government's consolidated financial statements - the Public Accounts of Canada - and examines financial and/or accounting shortcomings raised by the Auditor General. At the conclusion of a study, the Committee may present a report to the House of Commons that includes recommendations to the government for improvements in administrative and financial practices and controls of federal departments and agencies.
• Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:
  • the Public Accounts of Canada
  • all reports of the Auditor General of Canada
  • the Office of the Auditor General's Departmental Plan and Departmental Results Report, and
  • any other matter that the House of Commons shall, from time to time, refer to the Committee

Committee Operating Procedures

Witness' opening statements: 5 minutes

Questions Round 1

• Conservative: 6 minutes
• Liberal: 6 minutes
• Bloc Québécois: 6 minutes

Questions Round 2 (and subsequent rounds)

• Conservative: 5 minutes
• Liberal: 5 minutes
• Bloc Québécois: 2.5 minutes
• Conservative: 5 minutes
• Liberal: 5 minutes

Anticipated TBS-Related Activity - 45th Parliament

• Public Accounts 2025
• Real Property
• Professional Service Contracts

Committee Members

Name: John Williamson

• Role: Chair
• Party: Conservative
• Riding: Saint John-St. Croix
• PACP Member since: June 2025, Chair since October 2022, Previously a Member in 2013 and from 2022 to 2025

Name: Jean Yip

• Role: Vice-Chair
• Party: Liberal
• Riding: Scarborough-Agincourt
• PACP Member since: June 2025, Previously a Member from 2018 to 2025

Name: Sébastien Lemire

• Role: Vice-Chair
• Critic for Public Accounts
• Party: Bloc Québécois
• Riding: Abitibi-Témiscamingue
• PACP Member since: June 2025

Name: Gérard Deltell

• Party: Conservative
• Riding: Louis-Saint-Laurent-Akiawenhrahk
• PACP Member since: September 2023, Previously a Member from 2017 to 2018

Name: Ned Kuruc

• Party: Conservative
• Riding: Hamilton East-Stoney Creek
• PACP Member since: June 2025

Name: Stephanie Kusie

• Critic for Treasury Board
• Party: Conservative
• Riding: Calgary Midnapore
• PACP Member since: June 2025

Name: Kristina Tesser Derksen

• Party: Liberal
• Riding: Milton East-Halton Hills South
• PACP Member since: June 2025

Name: Tom Osborne

• Parliamentary Secretary to the President of the Treasury Board
• Party: Liberal
• Riding: Cape Spear
• PACP Member since: June 2025

Name: Anthony Housefather

• Party: Liberal
• Riding: Mont Royal
• PACP Member since: June 2025

Bio of the members of the committee

John Williamson (Saint John-St. Croix, NB) Conservative Chair

Jean Yip (Scarborough - Agincourt) First Vice-Chair, Liberal

Sébastien Lemire (Abitibi-Témiscamingue, QC), Bloc Québécois Second vice-chair

Gérard Deltell (Louis-Saint-Laurent-Akiawenhrahk, QC) Conservative

Ned Kuruc (Hamilton East-Stoney Creek, ON), Conservative

Stephanie Kusie (Calgary Midnapore, AB), Conservative

Kristina Tesser Derksen (Milton East-Halton Hills South, ON), Liberal

Anthony Housefather (Mount Royal, QC), Liberal

Tom Osborne (Cape Spear, N.L.), Liberal

4. Auditor General of Canada 2025 Report - Canada-Wide Early Learning and Child Care System

2025 Report of the Auditor General of Canada to the Parliament of Canada: Canada-Wide Early Learning and Child Care System

5. Management Response and Action Plan (MRAP)

Employment And Social Development Canada Detailed Action Plan to the recommendations of the Office of the Auditor General Performance Audit of the Canada-wide Early Learning and Child Care system

6. ELCC Issue notes

Summary of issue

On October 21, 2025, the Auditor General of Canada tabled a report on the Canada-Wide Early Learning and Child Care (ELCC) system. You have been called to appear before the Parliamentary Committee on Public Accounts (PACP) speak to the report and present Employment and Social Development Canada's (ESDC) Management Action Plan.

Background

• The Office of the Auditor General (OAG) conducted a performance audit on the Canada-wide ELCC system, examining a period from April 1, 2021 to March 31, 2025. The audit sought to determine whether ESDC fulfilled its responsibilities to support ELCC across Canada. The Audit Report was tabled in Parliament on October 21, 2025.
• The Auditor General concluded that while ESDC ultimately fulfilled its obligations, the Department did not effectively assess certain long-term inclusion objectives and that its reporting was not timely or comprehensive. The report noted specifically that:
  • ESDC supported provincial, territorial and Indigenous initiatives to improve ELCC in Canada, and most regulated ELCC became more affordable, at roughly $16.50 per day in March 2024 (this included 5 provincial and 3 territorial governments that reported achieving the $10 per day objective ahead of March 2026)
  • the target of 250,000 new ELCC spaces by March 2026 is at risk of not being met, as only 112,000 spaces were created in the first 3 years of the agreements
  • ESDC did not collect sufficient information with respect to its inclusion objectives and lacked adequate information to assess improvements to Indigenous ELCC
  • ESDC did not provide comprehensive reports, was behind in reporting, and lacked comparable performance information from provinces and territories (PTs)
  • PTs have raised concerns relating to the Canada-wide system's financial sustainability

The Auditor General's report recommends that ESDC:

1. continue to work with Indigenous partners to complete the implementation of the performance measurement plan to report on outcomes for Indigenous ELCC
2. work with PTs to obtain comparable performance information, including on spaces and unmet demand, inclusion, and financial sustainability
3. report annually to Canadians about investments made and progress within the Canada-wide system

In response to the Auditor General's recommendations, ESDC's Management Response commits to:

• coordinate implementation of the co-developed distinctions-based results frameworks throughout 2025 to 2026 and 2026 to 2027, support Indigenous partners as they transition to reporting on the indicators, and use information gathered to report on outcomes.
• work with provinces and territories to obtain comparable performance information with a view to assessing progress and outcomes under Canada-wide ELCC, strengthen data governance, and work bilaterally with PTs to assess outcomes on a regular basis.
• work to improve reporting with PTs and report annually in line with the Canada Early Learning and Child Care Act.

Key facts

• The Government of Canada has committed more than $30 billion over 5 years and is working with provincial and territorial and Indigenous partners to build a Canada-wide ELCC system.
• Through Canada-wide ELCC agreements provinces and territories commit to reaching an average fee of $10-a-day and creating 250,000 new regulated child care spaces by March 2026. Asymmetrical agreements are in place with Quebec.
• To date, 8 PTs are delivering regulated ELCC at an average of $10 a day or less (including Quebec and Yukon, who achieved this prior to the Canada-wide system) and all other jurisdictions have reduced fees by at least 50% on average. More than 200,000 new spaces have been announced to be created, and over 122,000 have been created.
• Affordable Canada-wide ELCC is expected to increase mothers' labour force participation. From 2019 to 2024, the labour force participation rate for core-aged (ages 25 to 54) mothers of young children (ages 0 to 5) rose by 3.3%.
• Studies show that for every dollar invested in early childhood education, the broader economy receives between $1.50 to $2.80 in return.

Audit Specific Messaging

1. If pressed on the Government's reaction OAG's recommendations

• Incredible progress has been made to date through the Canada-wide Early Learning and Child Care system to support families in Canada, but the Government of Canada has more work to do to improve its reporting practices.
• ESDC officials are actively working with our provincial, territorial and Indigenous partners to strengthen data and reporting.
• It is important that we communicate the impacts of the federal investments in the Canada-wide ELCC system that are improving child care and reducing costs for Canadian families.

2. If pressed on the Government's Management Response

• The Government of Canada fully accepts the OAG's recommendations and has developed an action plan to ensure that they are implemented.
• ESDC's action plan specifically commits that the Department will:
  • continue to collaborate with Indigenous partners in the spirit of co-development and Canada's obligations to advance reconciliation as we finalize and seek approvals for the new results frameworks and coordinate on implementation plans throughout fiscal year 2025 to 2026 and fiscal year 2026 to 2027
  • continue to work with partners to obtain comparable performance information with a view to assessing progress and outcomes under Canada-wide ELCC, work to strengthen data governance, and work bilaterally with PTs to assess outcomes on a regular basis
  • work to improve reporting with PTs and report annually in line with the Canada Early Learning and Child Care Act

If pressed further on actions to be taken in response to recommendations

Actions that will be taken to co-develop results frameworks on Indigenous Early Learning and Child Care (IELCC) will include:

• working towards the approval of results frameworks this fall by the government and Indigenous partners, and the submission of a progress report to Treasury Board Secretariat
• ensuring partners have the necessary tools and procedures to implement frameworks
• the development of an overarching strategy including a Departmental Program Information Profile (PIP), and updates to the IELCC Horizontal Initiative Framework

Actions over the next 6 months that will be taken to obtain comparable performance information include:

• the establishment of a Federal-Provincial-Territorial (FPT) Data and Indicators Sub-Working Group with willing PT partners, including a workplan to guide its work (the Sub-Working Group was established in Summer 2025, its workplan is currently being developed)
• the development and implementation of an ELCC data strategy
• partnering with Statistics Canada to launch the collection of the Canadian Child Care Workers Survey
• seeking to negotiate clauses on data into the extension agreements (included in all signed extensions thus far)
• receipt of deliverables from the Organisation for Economic Co-operation and Development (OECD) project: "Inclusion Indicators in Early Childhood Education and Care"

Actions over the next 6 months that will be taken to improve reporting will include:

• the development of a critical path to guide overdue reporting, the launch of a public webpage on results
• the integration a broader set of indicators into the departmental results framework (this action was completed in Summer 2025)
• seeking to negotiate clauses on data into the extension agreements (included in all signed agreements thus far)
• seeking to prioritize an item in the FPT Data and Indicators Sub-Working Group that supports streamlined reporting
• the communication of federal reporting expectations to provinces and territories

If pressed further on progress of implementation

• I am glad to report that the implementation of this MAP is well underway, and that some actions have already been completed, including:
  • the IELCC progress report to Treasury Board Secretariat (TBS) has been submitted
  • approval in principle of the distinctions-based, co-developed results frameworks has been received from Indigenous partners, and formal sign off is anticipated in the coming months. While federal approvals have been delayed, we anticipate being able to move forward as soon as final approvals are secured from all parties
  • the establishment of the Federal-Provincial-Territorial (FPT) Data and Indicators Sub-Working Group (DISWG), as the Terms of Reference for this was approved on September 10, 2025
  • the integration of a broader set of ELCC-related indicators into ESDC's Departmental Results Framework. ESDC added 4 new ELCC-related indicators to the 2026-2027 Departmental Result Framework in September 2025, all of which will be reflected in the 2026-2027 Departmental Plan
  • the branch also recently published its new results webpage entitled Progress and impact of Canada-wide Early Learning and Child Care to help illustrate the important progress made under the Canada-wide Early Learning and Child Care (CWELCC) system to date, and improve the transparency of the program

All other initiatives are in progress and are expected to be completed within the stated timeframe.

If pressed further on the strength of the Government's Action Plan

• Child care is an area of PT jurisdiction. The Action Plan aligns strictly with the Department's existing authorities and jurisdictional purview of the federal government.
• Given the scope of the audit was focused solely on the actions of the federal government, it is important that our planned actions do not infringe on PT jurisdiction as we work with our partners.
• Where actions fall within the federal government's control, we have established ambitious but achievable timelines to have completed actions by fiscal year 2026 to 2027.

3. If pressed on Indigenous Early Learning and Child Care (IELCC)

• The Government has undertaken significant work since 2022 to support reconciliation through the co-development of results frameworks with First Nations, Inuit and Métis partners to measure Indigenous early learning and child care outcomes, and this work will continue.
• Initial co-developed draft results frameworks for First Nations, Inuit and Métis were completed in March 2025 and are at varying stages of approval. The initial data collection cycle under the newly implemented results frameworks is projected to commence in fiscal year 2026 to 2027.
• ESDC and partner departments will continue to collect interim performance data from Indigenous funding recipients until co-developed results frameworks are implemented.
• The interim reporting strategy ensures government reporting requirements are met to assess whether federal funding is achieving desired outcomes. Implementation of the co-developed results frameworks will further help tell the story of positive outcomes for Indigenous communities and progress towards the shared vision of the Indigenous Early Learning and Child Care Framework.
• ESDC and partner departments have supported over 65 national, regional, and bilateral relationships with Indigenous partners to advance Indigenous-led ELCC priorities through the IELCC Transformation Initiative. Through these ongoing relationships, as well as ongoing, interim reporting, we hear directly about the progress that is being made. For example:
  • new childcare centres have been opened in Indigenous communities across Canada, and others have been expanded, including the Sunchild First Nation, Cree First Nation centre in Alberta, several new centres opened by the Manitoba Metis Federation, and renovated centres in Kimmirut and Pond Inlet, Nunavut, all creating new spaces
  • well over 1,500 minor capital repairs and renovations have been funded at ELCC sites
  • indigenous early childhood educators (ECE) have received new training and employee benefits
  • daycare centres have incorporated new Indigenous language and cultural coordinators and work with Elders and Knowledge Keepers
  • decisions on ELCC priorities are Indigenous-led and steps are being taken towards transfer

If pressed further on IELCC performance measurement

• Co-development processes take time to complete and help to illustrate how Canada is meeting its obligations to advance reconciliation. ESDC is working with partners to finalize the results frameworks and will continue to collaborate on implementation plans to support reporting on outcomes for Indigenous ELCC.
• A key tenet of reconciliation is respecting the timelines and priorities of Indigenous partners, which is essential for building the trust and fostering the collaborative relationships required to achieve authentic co-development. The co-development of results frameworks continues to progress, following the completion of initial draft frameworks by March 2025. All 3 National Indigenous Organization (NIO) partnership tables remain engaged in implementation planning, with each results framework incorporating defined implementation components. Fall 2025 meeting agendas have been formally dedicated to advancing this work.
• The audit scope was limited to only ESDC's role in Indigenous ELCC delivery and did not include the performance of other federal departments who also deliver the horizontal Initiative (that is Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada, Public Health Agency of Canada). Despite the limited focus, the OAG'S recommendations were aligned with the department's performance measurement activities that are currently underway.

If pressed further on IELCC and where we stand in the transition from legacy programs to new delivery models

• The Indigenous Early Learning and Child Care (IELCC) Transformation Initiative is an overlay of supplemental investments that enhance existing child care programming (aka "legacy" programs): ESDC's First Nations and Inuit Child Care Initiative which is administered through the Indigenous Skills and Employment Training; Indigenous Services Canada's Aboriginal Head Start on Reserve; and the Public Health Agency of Canada's Aboriginal Head Start in Urban and Northern Communities. The Government of Canada opted to keep these long-standing programs in accordance with feedback from a comprehensive national engagement with Indigenous partners and communities, and offer the option of merging or pooling funds to align with emerging IELCC governance structures.
• While ESDC is responsible for federal coordination of the Indigenous Early Learning and Child Care (IELCC) Transformation Initiative, it is implemented by 4 partner departments: ESDC, Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada and the Public Health Agency of Canada. ESDC ensures that funding is transferred to the appropriate department for processing per direction from Indigenous leadership. Funding flows to recipients through one or more of the partner departments.
• While the first several years of IELCC implementation focused on capacity and building governance systems to sustain these new investments, partners are increasingly opting to consolidate child care funding, including new IELCC investments and legacy programming, into single agreements, a process known as streamlining. The 4 Departments recently approved a streamlining process flow, and the IELCC Secretariat has developed partner outreach products which will be launched in Ontario this winter.
• For example, 2 out of 4 Inuit Treaty Organizations had their funding transferred via their grant mechanisms defined through their Self-Governing Agreement, while a third Inuit Treaty Org had their IELCC funding (including Aboriginal Head Start funding from Public Health) incorporated into one contribution agreement; 4 of 9 Métis Nation governments have opted to receive their funding through Crown-Indigenous Relations and Northern Affairs Canada's Master Agreements. As systems mature, departments are receiving more requests for streamlining. In Saskatchewan, ESDC implemented direction to streamline FNICCI and IELCC funding into single agreements, thus decreasing administrative and reporting burden for recipients. In Quebec, IELCC and FNICC funding were merged into a single agreement with the Leadership appointed convenor.

4. If pressed on achieving CWELCC objectives by March 2026

• The Government of Canada remains committed to continuing to work with all provincial, territorial and Indigenous partners to build an affordable, inclusive and high-quality early learning and child care system for families in Canada.
• The intent is to reduce fees for regulated child care and support the creation of 250,000 new child care spaces within the Canada-wide system across the country by March 2026.

5. If pressed on risk to meeting 250,000 space creation commitment

• When the Government of Canada announced its intention to create a Canada-wide ELCC system in Budget 2021, 2 immediate priorities were clear: improving affordability and access.
• As reflected in the Auditor General's report, efforts to date have delivered significant savings for families across the country.
• Creating new child care spaces is complex, often involving multi-year infrastructure projects and addressing workforce challenges.
• Under the Canada-wide ELCC agreements, PTs have committed to create 250,000 new child care spaces by March 31, 2026.
• Due to the timing of the audit, the data considered only included the first 3 years of the agreements. The remaining 2 years in the agreements have significant space creation planned. It is too early to conclude that space commitments will not be met.
• As of October 2025, provinces and territories have announced plans to create more than 200,000 new spaces. As per PT annual reports over 125,000 have been created. As ESDC continues to receive and validate PT annual reports the number of spaces created to date will rise.

If pressed further on spaces

• To meet the goal of creating 250,000 spaces by March 31, 2026, PTs outlined space creation targets in their Action Plans, which are negotiated with the federal government.
• These Action Plans reflect a gradual ramping up of space creation goals with the largest space expansions planned in the last 2 years of the agreements, reflecting the fact that spaces take time to build.
• This approach balances the Canada-wide objectives with the flexibility provinces and territories need to align space creation with their child care priorities and needs of their populations.
• Further, space creation data has a lag as PTs report into ESDC 6 months after the end of the fiscal year. ESDC then works with the PTs to review and validate the data to ensure it meets the reporting requirements set out in the agreements. The data cited in the AG's report reflects spaces created as of March 2024.

If pressed further on pace of space creation

• The number of spaces announced to be created by PTs over the last 6 months has increased substantially from approximately 166,000 spaces across Canada in July 2025 to over 201,000 spaces in November 2025.
• This represents an increase of approximately 21% in a short period of time representing a continued and accelerated pace of investment and space creation commitment.
• While spaces announced do not equate to operational child care spaces, it is a strong indicator of the number of new child care spaces that are expected to become operational in the following fiscal years.

6. If pressed on inclusive space creation

• The Government of Canada acknowledges that many parents face challenges in accessing child care options and are experiencing long waitlists.
• Each agreement's Action Plan has a space creation commitment. This approach balances the Canada-wide objectives with the flexibility PTs need to create spaces in line with their child care priorities, and community needs.
• The agreements with PTs contain commitments to eventually ensure equitable representation of vulnerable and diverse families and on the development of inclusion plans to support this goal.
• The Government of Canada is committed to enhancing inclusion within ELCC, and will continue to work with PTs to achieve those goals.

If pressed further on ensuring equitable access

• The Agreements with PTs contain commitments to develop and fund a plan to support equitable access to regulated child care spaces. Provinces and territories have developed and continue to update these plans, which the federal government reviews.
• The Department assessed PT inclusion plans according to its obligations, as these plans create the foundation for supporting diverse and vulnerable families.

If pressed further on support for Official Language Minority Communities (OLMCs)

• The Government of Canada understands that child care can have a profound influence on children's overall development, including their language skills and identity.
• While Canada has signed asymmetrical agreements with Quebec. The Canada-wide agreements with the remaining PTs include commitments to respect the rights of official language minority communities.
• The Canada Early Learning and Child Care Act recognizes the unique needs of official language minority communities and commits to maintaining long-term funding for early learning and child care programs and services, including early learning and child care programs and services for Indigenous peoples and for official language minority communities.
• Through the Action Plan for Official Languages from 2023 to 2028: Protection - Promotion - Collaboration, the Government of Canada has committed investments totaling more than $4.1 billion over 5 years, the largest amount ever provided by the federal government in official languages.
• This Action Plan includes a series of measures to ensure the vitality of official language minority communities and help promote lifelong learning opportunities, including over $60 million to support ELCC-related initiatives in Francophone minority communities across Canada.

If pressed further on supports for Indigenous children

• The Government of Canada recognizes that children hold a sacred place in the cultures of Indigenous peoples. High-quality, culturally appropriate and well-supported early learning and child care that is specifically designed for and with Indigenous families and communities will make a genuine difference in the early experiences of children, long-term development and life outcomes.
• The Canada Early Learning and Child Care Act sets out Canada's commitment to supporting First Nations, Inuit and Métis children within a comprehensive and coordinated early learning and child care system. The co-developed Indigenous Early Learning and Child Care (IELCC) Framework ensures that this work is rooted in Indigenous knowledge, cultures and languages and led by Indigenous peoples.
• All Canada-wide agreements include clauses that require provinces and territories to develop culturally appropriate ELCC programs for Indigenous families. The federal government encourages PTs to work directly with Indigenous partners.
• In addition to funding provided to province and territories, the Government of Canada has made a series of federal investments to support the implementation of the IELCC Framework and build on previous investments in Indigenous ELCC legacy programs. Through Budget 2017 the Government committed $1.75 billion over 10 years, which was made permanent and ongoing in the 2020 Fall Economic Statement. Most recently, Budget 2021 made a historic investment of $2.5 billion over 5 years, including new streams of funding for Indigenous ELCC infrastructure and $542 million ongoing, with a 3% annual increase starting in 2027.
• Dedicated investment in Indigenous ELCC is intended to complement and enhance funding provided to provinces and territories. This is in recognition of the unique needs in Indigenous communities and to ensure that Indigenous partners can participate alongside federal, provincial and territorial partners to design the Canada-wide ELCC system and advance Indigenous-specific ELCC priorities.

7. If pressed on reporting

• The Government of Canada is committed to ensuring Canadians have timely access to information regarding the federal investments and the progress being made toward creating and maintaining a Canada-wide ELCC system.
• ESDC relies heavily on annual reports from provinces and territories to complete national progress reports and is working with its partners to address the timeliness of annual reporting.
• As set out in the Management Response and Action Plan ESDC is working on additional ways to provide more timely reporting to Canadians and Parliamentarians.

If pressed further on delays in reporting

• Under the Canada-wide ELCC agreements, Provinces and Territories are required to provide Canada with an annual report on progress made. This report is due by October 1 and outlines data and results achieved from the previous fiscal year.
• The Government compiles reporting and results provided by provinces and territories and uses it, along with other sources of information, to prepare a national progress report.
• The national report communicates results against targets committed to under the ELCC Agreements, including the number of new spaces created.
• To improve transparency in the short term, the Government is working to publish a new webpage entitled Progress and impact of Canada-wide Early Learning and Child Care. This webpage outlines results of the ELCC system in an accessible and transparent way.

If pressed further on timelines to publish delayed reports

• While there has been tremendous growth in the program, the Government of Canada has been working with provinces and territories to align existing provincial and territorial data with our Canada-wide system.
• These reports are largely overdue as the Government of Canada aims to ensure that the data communicated within these reports are fully validated, accurate, and transparent to Canadians, which takes time and resources.
• The Government of Canada intends to publish reports which are overdue at the earliest possible opportunity. The fiscal year 2021 to 2022 report is expected to be published soon. As part of the Management Response Action Plan (MRAP) a critical path will be developed for publication of additional outstanding reports.
• The Government of Canada will continue to work with all of its partners to improve timely reporting including improving reporting, eliminating inefficiencies and streamlining processes.

If pressed further on annual reporting requirements

• ESDC currently publishes National Progress Reports on its website. The Canada Early Learning and Child Care Act strengthened transparency and reporting.
• The Act includes a requirement that the Minister table a report in Parliament for each fiscal year detailing federal investments and the progress being made under a Canada-wide system, including progress made as it relates to quality, availability, affordability, accessibility, inclusiveness of early learning and child care programs and services.
• As the Act came into force last year, fiscal year 2024 to 2025 will be the first fiscal year in which this requirement applies. Data for this report is starting to be provided by PTs now and will be reviewed, validated and integrated into the National Progress Report. Given this it is not possible to share a projected tabling date at this time.

8. If pressed on comparable performance information

• The Government of Canada agrees with the OAG in that it must continue working with its partners to obtain comparable performance information in support of its commitment to assessing the progress and outcomes of the Canada-wide ELCC system. This work must be done in a way that respects the jurisdiction of provinces and territories.
• The data and performance measurement systems used by provinces and territories are at different stages of development.
• Building robust reporting mechanisms across jurisdictions takes time. The Government expects that data and performance measurement capabilities will continue to improve as the Canada-wide ELCC system matures.
• Through ongoing dialogue and multilateral discussions, the Government is working with provinces and territories to strengthen reporting and establish clear and consistent indicators for the system.
• This information is foundational to transparent communication about the ELCC system and what it is achieving for families in Canada.

9. If pressed on why PTs have only spent $12 billion of $15 billion in transfers

• The report found that provinces and territories had spent $12 billion of the total $15 billion in federal funding provided to them, as PTs were permitted to carry-forward roughly $2.7 billion in funding.
• The ability to carry forward funding from one fiscal year to the next is a tool that allows provinces and territories to better align funding with planned expenditures, in particular those related to capital costs.

If pressed further on carry forwards

• Funds that are carried forward must be used for eligible expenditures in the next fiscal year. PTs are not entitled to retain unspent funds.
• The Government of Canada continues to work with PTs to ensure proper management of federal funds.

10. If pressed on holding PTs to account

• ESDC makes use of several mechanisms to monitor compliance. ESDC's processes for monitoring PT performance and compliance under the ELCC agreements are set out within the agreements themselves, which are publicly available.
• The ELCC agreements require provinces and territories to provide Action Plans detailing their planned initiatives, along with annual audited financial statements and annual reports as conditions of payment.
• In addition to withholding funds in the absence of required planning and reporting, the ESDC also monitors compliance through regular implementation committee meetings, ongoing engagement with stakeholders, validation of reporting, and quantitative analysis of systems and results.

If pressed further on whether funding has been withheld

The Department has withheld funding in instances where planning and reporting requirements were outstanding, including for: Newfoundland and Labrador, Nova Scotia, New Brunswick, Ontario, Alberta, Manitoba, BC, Northwest Territories and Yukon.

11. If pressed on funding has been recouped from PTs

• Funding has been recouped from PTs when it has not been spent, in line with the requirements of the ELCC agreements. Funding recouped to date has generally been minor.
• Funding has been recovered in different instances from New Brunswick, Newfoundland and Labrador, Northwest Territories, Yukon, Nunavut, British Columbia and Alberta.
• In accordance with the Guidelines of Managing Accounts Receivables and the Agreement terms, the province or territory can repay their debt by deducting or setting-off the amount of debt from any future contribution payable under the Agreements; or by repaying the owed debt to the Receiver General of Canada.

12. If pressed on Ontario's recent audit

• ESDC has been taken a careful look at the audit published by the Auditor General of Ontario on October 1, 2025, regarding the Ontario Ministry of Education's implementation of the Canada-Ontario Canada-wide ELCC Agreement.
• The findings of this report are important for us to understand in the context of the administration of our agreements with Ontario.
• Building on the significant progress made to date to support families across the province, we will continue to work closely with the Government of Ontario to support the successful implementation of the Canada-wide ELCC system.

13. If pressed on status of negotiations (extension agreements)

• In February and March 2025, the Government of Canada reached agreements with 10 of 13 provinces and territories to extend their existing early learning and child care agreements until March 31, 2031, which included the fourth and final year of the Early Learning and Child Care Infrastructure Fund (fiscal year 2026-2027), providing nearly $20 billion over 5 years. The agreements also included new funding for an annual 3% escalator from fiscal year 2027 to 2028 to fiscal year 2030 to 2031 to ensure early learning and child care programs and services are protected from cost increases.
• The Government of Canada is in negotiations with provinces (Alberta, Ontario and Saskatchewan) that have not yet extended their early learning and child care agreements .
• The Government of Canada also recently launched negotiations for action plans with those provinces and territories that have signed extensions to their existing early learning and child care agreements.
• While details of the negotiations cannot be disclosed, the Government of Canada is maintaining open lines of communication with provincial counterparts to better understand their needs and challenges and continues to work in collaboration with provinces and territories to support the successful implementation of the Canada-wide ELCC system.

Ontario

• On November 10, 2025, the Governments of Canada and Ontario secured an agreement-in-principle for a one-year extension to the Canada-Ontario Canada-wide ELCC agreement, which was set to expire on March 31, 2026. This extension to March 31, 2027 includes funding for the final and fourth year of the Early Learning and Child Care Infrastructure Fund, previously announced in March 2024.
• While working with the Government of Ontario on solutions for a longer-term Agreement, this extension will provide stability by keeping current child care fees at an average of $19 per day, until at least December 31, 2026 and will help support the creation of a total of 86,000 child care spaces.

Please note: an announcement is planned for December 4, 2025.

Saskatchewan

Negotiations on a 5-year extension to the existing agreements are progressing very well with Saskatchewan and the government hopes to be able to announce agreement soon.

Please note: on November 7, 2025 the Governments of Canada and Saskatchewan secured an agreement-in-principle for a 5-year extension, starting in fiscal year 2026 to 2027, to the existing bilateral Canada-Saskatchewan ELCC Agreement and to the Canada-Saskatchewan Canada-Wide ELCC Agreement until March 31, 2031. This extension also includes continued funding to extend the Canada-Saskatchewan ELCC Infrastructure Funding Agreement for an additional year, until fiscal year 2026 to 2027. An announcement is scheduled for November 28, 2025 in Regina.

Alberta

Negotiations with Alberta are progressing well and the government hopes to be able to announce agreement soon.

Please note: on November 21, 2025 the Governments of Canada and Alberta secured an agreement-in-principle for a one-year extension, starting in 2026-2027, to the existing bilateral Canada-Alberta ELCC Agreement and to the Canada-Alberta Canada-Wide ELCC Agreement until March 31, 2027. This extension also includes continued funding to extend the Canada-Alberta ELCC Infrastructure Funding Agreement for an additional year, until 2026-2027. No announcement date is confirmed at this time.

14. If pressed on affordability for families

• To date, 8 PTs are delivering regulated ELCC at an average of $10 a day or less (including Quebec and Yukon, who achieved this prior to the Canada-wide system); all other jurisdictions have reduced fees by at least 50% on average.
• Federal and PT investments in ELCC since 2021 have made life more affordable for parents. Thanks to investments through the Canada-wide ELCC agreements, parents are saving up to $8,900 per child, on average per year in child care fees when compared with fees before system implementation.

15. If pressed on Budget 2025

• On November 4, 2025, the Government of Canada announced the Fall 2025 Budget. The key themes of the budget are centered on increased defense spending, building affordable homes, supports for workforce affected by tariff uncertainty, and funding to support infrastructure and major capital projects across Canada.
• The Budget noted that Canada-wide ELCC transfer payments are expected to increase from $7.9 billion in fiscal year 2025 to 2026 to $8.5 billion in fiscal year 2029 to 2030. This reflects a 3% annual increase for 4 years, starting in fiscal year 2027 to 2028. These payments also include $625 million, over 4 years, for the ELCC Infrastructure Fund, beginning in fiscal year 2023 to 2024.
• Budget 2025 indicated that the federal government "remains focused on empowering Canadians-by lowering costs, expanding opportunity, and protecting the vital social programs Canadians rely on," including child care.
• Budget 2025 also found that strong labour market conditions and reduced child care costs have helped foster greater participation in the workforce.

If pressed further on why there were no new investments

• Despite that no new investments in ELCC were made in Budget 2025, the system continues to deliver meaningful savings for families.
• In early 2025, the Government of Canada reached agreements with 10 of 13 provinces and territories to extend their existing Canada-wide early learning and child care agreements until March 31, 2031. The agreements also included new funding for an annual 3% escalator from 2027-2028 to 2030-2031 to ensure early learning and child care programs and services can manage cost increases.
• The Government of Canada remains committed to delivering high-quality, affordable, inclusive child care and are working to optimize existing resources to meet jurisdictional needs.

16. If pressed on system sustainability

• The Government of Canada has heard from provinces and territories about some of the challenges they are facing regarding the long-term sustainability of the Canada-wide early learning and child care system.
• Given the unique challenges of some jurisdictions, we are taking the time to better understand and assess their concerns through ongoing discussions with our partners.
• We remain committed to working together with provinces and territories and Indigenous partners to protect the long-term sustainability of this important program that makes life more affordable for families across Canada.

17. If pressed on waitlists

• Families across Canada are benefiting from historic investments in affordable child care. The Government of Canada is working with provinces and territories to expand access so more families can benefit.
• That said, the Government of Canada acknowledges that many parents face challenges in accessing child care options and are experiencing long waitlists.
• Long waitlists are evidence of an increased demand for the ELCC system, showing that families recognize the value of affordable and high quality ELCC. Federal investments are making more of this type of care possible.
• PTs may choose to voluntarily report on waitlists where the data is available and whenever it is possible. However, most PTs do not maintain centralized waitlist systems, nor do they make publicly available an estimate of the number of children waiting to access ELCC in their jurisdiction.
• The Government of Canada will continue to work with its partners to improve reporting and its understanding of unmet child care demand.

a. Early Learning and Child Care Key Figures as of Data as of November 24, 2025

Affordability

• 8 provinces and territories have achieved fees of $10 a day or less for regulated child care
• The child care services element of the consumer price index (CPI) has declined by 33.2% from the peak of 180.0 in March 2022 reaching their lowest point since 2008. By contrast, the all-item CPI has increased by 11% since that date

Access / Space Creation

• An estimated 908,651 early learning child care (ELCC) spaces for children aged 0 to 5 were in operation before the Canada-wide ELCC system was implemented (not all baseline spaces joined the Canada-wide system - figure includes Quebec)
• Over 250,000 spaces are committed to being created across Canada by March 2026
• Over 205,000 new affordable spaces have been announced as of November 2025 thanks to the efforts of provincial, territorial and federal governments
• Of these, more than 122,000 new spaces have been created since 2021

Economics Returns

• 3.3% increase in the labour force participation rate among core-aged (25 to 54) mothers of young children (0 to 5) in Canada from 2019 to 2024
• As a result of investments in reducing child care fees, families across Canada are saving between $3,900 to $8,900 per child, per year
• 74,200 more mothers (ages 25 to 54) of young children (0 to 5) are in the labour force since 2019
• Studies show that for every dollar invested in early childhood education, the broader economy receives between $1.50 and $2.80 in return

Quality / Workforce

• ESDC estimates that up to 30,750 additional early childhood educators (ECE) may still be needed by March 2026 to staff expected Canada-wide ELCC space growth, based on provincial and territorial reporting and staffing ratios
  • In the last year, ECE and assistants' employment increased by 10.7%, outpacing overall employment growth by 1.8% over the same period (September 2024 to September 2025)
  • As of July 2025, employment among ECEs and assistants has grown by approximately 60,800 positions or 28.2% since the announcement of the Canada-wide system in April 2021
  • According to the 2021 Census, 96% of the ELCC workforce in Canada were women, 35% were immigrants (up from 27% in 2016), and 32% were racialized (up from 24% in 2016)
• In 2024, 40.5% of centres were not operating at maximum capacity; over 85% had difficulties staffing vacant positions
• 10 provinces and territories have implemented wage grids/floors/top ups under their respective agreements. Provinces and territories are also implementing pension plans, benefits plans, and workforce strategies

Inclusion

• $625 million over 4 years is being provided through the ELCC Infrastructure Fund to support increased inclusion in the not-for-profit and public child care sector
• All agreements contain clauses to support official language minority communities, outside of Quebec's asymmetric agreement

Fee reductions to date and estimated annual savings per child per year

There are 8 provinces and territories that have achieved $10 a day or less regulated child care as of April 2024. As a result of investments in reducing child care fees, families across Canada are saving between $3,900 to $8,900 per child, per year.

Child Care Services Cost as a measurement of CPI

The child care services element of the consumer price index (CPI) has declined by 33.2% from the peak of 180.0 in March 2022 reaching their lowest point since 2008. By contrast, the all-item CPI has increased by 11% since that date

Text description Figure 1

Child Care Services Cost as a measurement of CPI

Year	Month	Child care services	All-items
2020	January	169.6	136.8
2020	February	171.2	137.4
2020	March	171.2	136.6
2020	April	171.1	135.7
2020	May	171.4	136.1
2020	June	171.6	137.2
2020	July	171.6	137.2
2020	August	171.6	137
2020	September	173.7	136.9
2020	October	174.1	137.5
2020	November	174.1	137.7
2020	December	174.1	137.4
2021	January	174.1	138.2
2021	February	177.4	138.9
2021	March	177.4	139.6
2021	April	177.4	140.3
2021	May	177.5	141
2021	June	177.7	141.4
2021	July	177.7	142.3
2021	August	177.7	142.6
2021	September	178.5	142.9
2021	October	178.7	143.9
2021	November	178.7	144.2
2021	December	178.7	144
2022	January	179.4	145.3
2022	February	180	146.8
2022	March	180	148.9
2022	April	166.7	149.8
2022	May	166.9	151.9
2022	June	164.2	152.9
2022	July	164.2	153.1
2022	August	164.2	152.6
2022	September	164.1	152.7
2022	October	164.8	153.8
2022	November	164.8	154
2022	December	157	153.1
2023	January	149.5	153.9
2023	February	130.5	154.5
2023	March	130.5	155.3
2023	April	127.3	156.4
2023	May	127.6	157
2023	June	127.9	157.2
2023	July	127.9	158.1
2023	August	128.3	158.7
2023	September	127	158.5
2023	October	128	158.6
2023	November	128	158.8
2023	December	128	158.3
2024	January	128	158.3
2024	February	126.9	158.8
2024	March	126.9	159.8
2024	April	126.9	160.6
2024	May	127	161.5
2024	June	127.5	161.4
2024	July	127.5	162.1
2024	August	128	161.8
2024	September	127.4	161.1
2024	October	128	161.8
2024	November	128	161.8
2024	December	128	161.2
2025	January	128	161.3
2025	February	120.5	163
2025	March	120.5	163.5
2025	April	121.4	163.4
2025	May	121.5	164.3
2025	June	121.8	164.4
2025	July	121.8	164.9
2025	August	122.1	164.8
2025	September	121	164.9
2025	October	120.2	165.3

Spaces created by fiscal year, as reported through annual reports and number of spaces announced as of November 2025

Progress on Space Creation Commitments

Of the more than 250,000 spaces committed to be created across Canada by March 2026, more than 122,000 have been created since 2021. This represents 43.1% of total commitments.

Space Creation Commitments on Spaces Announced

Over 205,000 new affordable spaces have been announced to be created across the country as of November 2025. This represents 72.1% of total space creation commitments.

Not-for-Profit/For-Profit Ratios of Canada-wide Created Spaces

• Canada-wide Agreements, except Quebec, include commitments to prioritize not-for-profit, public and family-based child care providers, either predominantly or exclusively.
• Some PT baseline not-for-profit (NFP) / for-profit (FP) ratios were calculated based on centres, not spaces, and did not account for home-based providers (for example, Prince Edward Island and Nova Scotia). Some provincial and territorial baseline ratios include data for spaces not eligible for the Canada-wide system (for example, Yukon, Saskatchewan, Manitoba).
• While many Provinces and territories have explicit targets for NFP space creation, some do not (Prince Eward Island, Ontario, British Columbia, Yukon). Some Provinces and territories can include FP spaces created entirely with PT funding towards their Canada-wide ELCC commitments (for example, British Columbia and Yukon).
• Spaces created reflects PT annual reports up to March 31, 2024, excepting Newfoundland and Labrador, Northwest Territories, and Yukon which are to March 31, 2023.
• N/A indicates where data are not available or are other not appliable. Québec is the only jurisdiction not required to submit annual reports. For Prince Edeward Island, the split between NFP and FP spaces is not reported explicitly, and an assumption can not yet be made to determine the NFP / FP split.

Not-For-Profit and For-Profit Care Ratios and Progress

Women's Labour Force Participation Rates

• 79.1% labour market participation among core-aged (25 to 54) mothers with young children (0-5) in Canada in 2024, up from 75.8% in 2019
• 3.3% increase in the labour force participation rate for core-aged mothers with young children in Canada from 2019 to 2024

Labour force participation rates (annual), Canada, 2015 to 2024

Estimated Spendings by Jurisdiction in ELCC and Kindergarten

PT investments in ELCC are outpacing federal investments in 10 out of 13 jurisdictions when including Kindergarten

Text description Figure 2

Chart showing estimated spending 2025 to 2026 of Federal ELCC notional allocations, provincial and territorial ELCC, and provincial and territorial kindergarten

Province/Territory	Total federal fiscal year 2025 to 2026 ELCC investment allocation (notional, in million)	Estimated fiscal year 2025 to 2026 PT ELCC Spend net of Federal Contribution excluding Kindergarten (in millions)	2023 ECE Report Estimate of Kindergarten Spending (in millions)	Percentage Federal	Percentage Province/Territory	Percent PT Kindergarten
NL	$97	$67	$55	44%	31%	25%
PE	$40	$48	$20	37%	45%	19%
NS	$202	$135	$151	41%	28%	31%
NB	$168	$207	$96	36%	44%	20%
QC	$1,871	$2,532	$1,204	33%	45%	21%
ON	$3,188	$3,382	$3,352	32%	34%	34%
MB	$364	$139	$120	58%	22%	19%
SK	$316	$97	$95	62%	19%	19%
AB	$1,163	$803	$652	44%	31%	25%
BC	$1,023	$866	$383	45%	38%	17%
YT	$16	$31	$10	28%	54%	18%
NT	$18	$18	$21	31%	32%	37%
NU	$23	$8	$7	60%	21%	19%
Total	$8,490	$8,335	$6,167	37%	36%	27%

Investments in ELCC by jurisdiction and including Kindergarten

Since 2019, in real terms, PT investments excluding Kindergarten spending have increased by 7.6% or $490.6 million.

Early Childhood Educator Labour Force Growth

An estimated 30,750 early childhood educators (ECEs) are needed to support remaining Canada-wide ELCC space creation commitments by March 2026

Text description Figure 3

Year	Month	Total ECE Employment
2020	April	218,600
2020	May	186,800
2020	June	186,400
2020	July	194,800
2020	August	203,900
2020	September	212,200
2025	October	223,200
2020	November	234,800
2020	December	242,200
2021	January	238,800
2021	February	228,500
2021	March	212,100
2021	April	215,400
2021	May	221,000
2021	June	232,500
2021	July	232,400
2021	August	230,900
2021	September	231,500
2021	October	236,300
2021	November	241,300
2021	December	238,200
2022	January	233,300
2022	February	231,100
2022	March	233,700
2022	April	240,100
2022	May	244,800
2022	June	250,700
2022	July	242,600
2022	August	233,400
2022	September	221,700
2022	October	226,600
2022	November	234,500
2022	December	241,300
2023	January	245,600
2023	February	249,300
2023	March	257,400
2023	April	258,500
2023	May	261,200
2023	June	258,700
2023	July	253,200
2023	August	243,200
2023	September	238,400
2023	October	236,600
2023	November	239,700
2023	December	240,100
2024	January	250,800
2024	February	257,100
2024	March	258,800
2024	April	255,100
2024	May	255,900
2024	June	254,700
2024	July	245,800
2024	August	244,100
2024	September	257,000
2024	October	275,300
2024	November	289,100
2024	December	287,400
2025	January	283,600
2025	February	268,900
2025	March	263,800
2025	April	258,500
2025	May	267,800
2025	June	273,100
2025	July	276,200
2025	August	270,300
2025	September	266,800
2025	October	271,600

ECE Workplace Benefits

Provinces and territories are implementing pension plans, benefits plans, and workforce strategies

b. Total Federal Investments 2021 to 2022 to 2025 to 2026 in millions including Canada-wide, bilateral, workforce and infrastructure agreements

National allocations are based upon July 2024 population data

c. Infographic - Indigenous ELCC overview 2025 to 2026

Text description Figure 3

Indigenous Early Learning and Child Care

Lowering costs for Canadians through

• Building Indigenous Early Learning and Child Care (IELCC) sites and spaces
• Creating jobs in Indigenous communities
• Improving labour force supply and participation
• Contributing to Gross Domestic Product (GDP) through expanded IELCC services

1990s

Legacy

• 3 federal programs were created to support child care and healthy development for Indigenous children
• These programs were siloed, had static funding, limited cultural / language supports and did not include Métis.

2017 to 2021

Transformation

• Transform federal policy on IELCC to promote:
  • Indigenous-led decisions
  • Indigenous knowledge, cultures and languages
  • Partnership, engagement and co-development
  • Flexibility and horizontality
  • Increased access to programs and services
• Milestone: A co-developed Indigenous Early Learning and Child Care Framework

Investment

• Build on investments in existing 'legacy' programs ($132M annually):
  • Budget 2017 = $1.7B over 10 years
  • Fall Economic Statement 2020 = $145M over 5 years (starting in fiscal year 2021 to 2022) + $225M ongoing
  • Budget 2021 = $2.5B over 5 years (starting in fiscal year 2021 to 2022) + $542M ongoing + 3% annual increase

2022 to 2028

Implementation

• Employment and Social Development Canada (ESDC) is the federal focal point for the IELCC initiative, which is grounded in a partnership model.
• ESDC, Indigenous Services Canada, Crown-Indigenous Relations and Northern Affairs Canada and Public Health Agency of Canada administer funding for programs and services, governance and infrastructure.
• ESDC cultivates over 65 relationships with Indigenous partners to determine priorities, workplans, funding models and results.

Ongoing

Transfer

• Streamline funding agreements
• Incorporate needs-based funding considerations
• Identify potential transfer models
• Engage with partners on their vision for transfer
• Work with Modern Treaty holders
• Goal: to improve access to quality IELCC; Transfer of IELCC to Indigenous partners based on their lead, approach and pace

d. Timeline of Federal Investments in Indigenous Early Learning and Child Care

Pre-2016

• The Government of Canada established 3 separate Indigenous Early Learning and Child Care (IELCC) programs in the 1990s, each managed by a different department.
  • Aboriginal Head Start on Reserve (AHSOR), delivered by Indigenous Services Canada (ISC), ongoing annual budget of $41.5M
  • Aboriginal Head Start in Urban and Northern Communities (AHSUNC), delivered by the Public Health Agency of Canada (PHAC), ongoing annual budget of $29.1M, and
  • The First Nations and Inuit Child Care Initiative (FNICCI), delivered by Employment and Social Development Canada (ESDC), ongoing annual budget of $55M. FNICCI was a minor component of the Indigenous Skills and Employment Training (ISET) strategy

Budget 2016

Initial commitment of $129.4M in fiscal year 2016 to 2017 for urgent repairs and renovations of existing IELCC facilities.

Budget 2017

• $1.75B over 10 years (between fiscal year 2018 to 2019 and fiscal year 2027 to 2028) was committed to advance the goals of the IELCC Framework. Budget 2017 investments were allocated across envelopes and funding streams as follows:
  • $1,581B over 10 years, beginning in fiscal year 2018 to 2019, for First Nations, Inuit and Métis distinctions-based envelopes for programs and services, to be allocated through national and regional Indigenous Leadership decisions. A minimum of 10% of the programs and services funding was earmarked for investments in partnership and governance. The distinctions-based envelopes each also included $5M per year, from fiscal year 2023 to 2024 to fiscal year 2027 to 2028, for Transformative Action Funds
  • $34M over 10 years in additional investments in AHSUNC, beginning in fiscal year 2018 to 2019
  • $44M over 10 years, beginning in fiscal year 2018 to 2019 for Quality Improvement Projects (QIP), to be allocated by ESDC through application-based processes

COVID Emergency Funding

• In fiscal year 2019 to 2020, the government made a one-time emergency investment of $120M to help Indigenous partners respond to COVID-19 public health measures and safely operate during the pandemic. This funding was allocated as follows:
  • $71.01M to the First Nations distinctions-based envelope
  • $10.90M to the Inuit distinctions-based envelope
  • $29.88M to the Métis Nation distinctions-based envelope
  • $8.21M to the AHSUNC program

Fall Economic Statement 2020

• Fall Economic Statement (FES) 2020 announced $145M over 5 years and $225M ongoing for IELCC, with the following components:
  • $37.5M over 5 years, starting in fiscal year 2021 to 2022, and $7.5M ongoing to establish a dedicated partnerships and governance funding stream within existing distinctions-based envelopes. As a result of this new investment, it was no longer required to earmark 10% of the programs and services funding stream towards funding for partnerships and governance. These were now 2 distinct streams of funding within distinction-based envelopes
  • $75M in one-time investment for fiscal year 2021 to 2022 for the programs and services funding stream of distinctions-based envelopes
  • $32.5M over 5 years, starting in fiscal year 2021 to 2022, and $7.5M ongoing, to sustain the existing federal IELCC Secretariat
• The FES 2020 also made the funding for IELCC under Budget 2017 permanent and ongoing at fiscal year 2027 to 2028 levels.

Budget 2021

• Budget 2021 announced further investments of $2.5B over 5 years and $542M ongoing for IELCC, including new streams of funding for IELCC infrastructure. Budget 2021 investments included the following components:
  • $1.3B over 5 years, starting in fiscal year 2021 to 2022, and $369M ongoing to enhance distinctions-based envelopes, including:
    • $1.29B over 5 years, beginning in fiscal year 2021 to 2022 and $358M ongoing starting in fiscal year 2026 to 2027 for the programs and services funding stream
    • $172.5M over 5 years, beginning in fiscal year 2021 to 2022, and $34.5M ongoing starting in fiscal year 2026 to 2027, for the partnerships and governance funding stream
  • $59.8M over 5 years beginning in fiscal year 2021 to 2022 and $16M ongoing starting in fiscal year 2026 to 2027 for additional investments in AHSUNC
  • $515M over 5 years, starting in fiscal year 2021 to 2022, and $112M ongoing, to support before and after-school care for First Nations children on reserve. These investments are administered by ISC through a separate program and are not formally a component of distinctions-based envelopes nor of the IELCC Initiative.
  • $10M a year, starting in fiscal year 2023 to 2024, and ongoing, in additional investment for the expansion of the QIP funding envelope
• $264M over 4 years starting in fiscal year 2022 to 2023, and $24M ongoing, to repair and renovate existing IELCC centres. The first 3 years of funding were administered directly by federal departments. They were incorporated as a separate funding stream of existing distinctions-based envelopes as of fiscal year 2025 to 2026.
• $420M over 3 years, starting in fiscal year 2023 to 2024, and $21M ongoing, to build and maintain new IELCC centres in additional communities. This led to the establishment of a dedicated funding stream for new infrastructure investments within existing distinctions-based envelopes.
• Budget 2021 also announced that all new and existing IELCC investments will increase by 3% each year starting in fiscal year 2027 to 2028.

Budget 2023

Budget 2023 re-profiled the $420M for new infrastructure investments over 4 years (fiscal year 2023 to 2024 to fiscal year 2026 to 2027), rather than 3, with a smaller initial allocation in fiscal year 2023 to 2024, providing Indigenous partners further time to plan investments in subsequent years.

Text description Figure 4

Federal Investments in Indigenous Early Learning and Child Care

Mid-Nineties to Pre-Budget 2016

1990s: Indigenous Early Learning ad Child Care programs start (now called legacy programs)

• Aboriginal Head Start on Reserve (AHSOR)
• Aboriginal Head Start in Urban and Northern Communities (AHSUNC)
• First Nations and Inuit Child Care Initiative (FNICCI)

Reach $163M annually with $132M to programs

2016 to 2019

Budget 2016

$129.4M in fiscal year 2016 to 2017 for urgent repairs in early learning and child care centres

Budget 2017: Establishes Indigenous Early Learning and Child Care Transformation Initiative

$1.7B over 10 years starting in fiscal year 2018 to 2019

2020

2020 Fall Economic Statement

Makes Budget 2017 investments ongoing, to reach $346M annually by fiscal year 2026 to 2027

2021, and ongoing

Budget 2021

Commits $2.5B over 5 years, and by fiscal year 2026 to 2027 total funding would reach $542M annually, and ongoing

Note:

Funding allocations go into reference levels at ESDC, PHAC and ISC. ESDC transfers required amounts to Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) through supplementary estimates or Annual Reference Level Updates (ARLU).

Funding is administered through agreements between Indigenous partners and ESDC, PHAC, ISC and CIRNAC.

e. PT Auspice ratios

Not-for-Profit/For-Profit Ratios of Canada-wide Created Spaces

• Canada-wide Agreements, except Quebec, include commitments to prioritize not-for-profit, public and family-based child care providers, either predominantly or exclusively.
• Some PT baseline not-for-profit (NFP) / for-profit (FP) ratios were calculated based on centres, not spaces, and did not account for home-based providers (for example, Prince Edward Island and Nova Scotia). Some provincial and territorial baseline ratios include data for spaces not eligible for the Canada-wide system (for example, Yukon, Saskatchewan, Manitoba).
• While many Provinces and territories have explicit targets for NFP space creation, some do not (Prince Eward Island, Ontario, British Columbia, Yukon). Some Provinces and territories can include FP spaces created entirely with PT funding towards their Canada-wide ELCC commitments (for example, British Columbia and Yukon).
• Spaces created reflects PT annual reports up to March 31, 2024, excepting Newfoundland and Labrador, Northwest Territories, and Yukon which are to March 31, 2023.
• N/A indicates where data are not available or are other not appliable. Québec is the only jurisdiction not required to submit annual reports. For Prince Edeward Island, the split between NFP and FP spaces is not reported explicitly, and an assumption can not yet be made to determine the NFP / FP split.

Not-For-Profit and For-Profit Care Ratios and Progress

f. Aditional Tables Spaces and Fees with Savings

Number of spaces created by fiscal year, as reported through annual reports and number of spaces announced as of November 2025

8 provinces and territories that have achieved $10 a day or less regulated child care as of April 2024. As a result of investments in reducing child care fees, families across Canada are saving between $3,900 to $8,900 per child, per year

g. ELCC - IELCC MRAP Tracker

Management Response Action Plan Tracker Early Learning and Child Care and Indigenous Early Learning and Child Care

Table 2: Legend

Status	Description
Completed	Please use this indicator when no further actions are required to achieve the commitment and the task has been completed.
On Track	Please use this indicator to indicate that a commitment is underway and the work is expected to be completed by the due date.
Delayed	Please use this indicator to indicate that a commitment is still intended to be achieved, but will not be completed by the due date.
At Risk	Please use this indicator when the commitment is expected not to be achieved in the near future, or is no longer possible to achieve.