The Complete CWELCC Guide for Canadian Childcare Operators (2026)

What is CWELCC?

The Canada-Wide Early Learning and Child Care (CWELCC) program is a landmark federal-provincial agreement signed in 2021 that commits the federal government and all provinces (excluding Quebec, which has its own system) to reducing licensed childcare fees to an average of $10/day for children under six years old.

The federal government committed over $27 billion over five years as part of Budget 2021, with a minimum of $9.2 billion per year permanently from 2025-2026 onward for early learning and childcare across Canada.

Key Milestones and Dates

Ontario: What Operators Need to Know

Fee Caps (January 1, 2025 onward)

As of January 1, 2025, Ontario operators participating in CWELCC must cap parent-facing daily fees at $22/day for eligible children (under 6). If your fees were already at or below $22/day before this date, no change was required.

The path to $10/day average is ongoing through 2026:

• Fees were reduced by approximately 52.75% from 2020 rates by end of 2022
• Further reductions are bringing fees toward $10/day average by end of 2026
• The current average for participating programs is approximately $19/day

Who Must Participate?

Participation in CWELCC is optional for operators, but operators who opt in receive provincial funding to offset the fee reductions they pass on to families. Operators who do not participate cannot offer CWELCC-reduced fees to their enrolled families.

Operator Requirements When Enrolled in CWELCC

1. 1Fee cap compliance: Maintain daily fees at or below $22 (as of Jan 2025)
2. 2Parent notification: Include CWELCC participation status in your parent handbook
3. 3Funding agreement: Keep a copy of your CWELCC agreement on-site, available to your Ministry program advisor during inspections
4. 430-day notice: Give families at least 30 days' notice of any fee changes; families may withdraw without penalty if fees change
5. 5CCEYA compliance: Continue to meet all Child Care and Early Years Act, 2014 requirements regardless of CWELCC participation
6. 6Wage Enhancement: RECEs and supervisors must receive the mandated $1/hr wage increase annually from 2023-2026, up to a maximum of $25/hr

What Fees Can You Still Charge?

Operators enrolled in CWELCC must use the base fee structure set in Ontario Regulation. Registration fees, activity fees, and some optional program fees may still apply. However, these must be clearly disclosed and cannot be used to circumvent the daily fee cap.

British Columbia: CCFRI and $10-a-Day ChildCareBC

Child Care Fee Reduction Initiative (CCFRI)

The CCFRI provides monthly funding to licensed childcare providers to reduce and stabilize fees for families. Key details:

• Families do not apply: savings are passed directly by participating providers
• Eligible families: Children aged 12 and under in participating programs
• Not income-tested: available to all families in participating centres
• Fee floor: Fees will not be reduced below $200/month ($10/day) for full-time care or $140/month ($7/day) for part-time care
• Provider opt-in: Voluntary. Providers apply when submitting for Child Care Operating Funding (CCOF)

What Changed April 1, 2026 (BC)

• Providers in the fee reduction program may only charge optional fees for extended hours after offering a minimum of 9.5 hours of service per day during regular operating hours
• Providers switching from the $10-a-Day ChildCareBC program to CCFRI must maintain comparable hours and cannot introduce optional fees for previously included services
• Staff wages, benefits, and hours must be maintained at existing levels

CCOF Funding Agreement Timeline (2026-27)

Quebec: A Different System

Quebec is excluded from the federal CWELCC agreement because it already operates Canada's oldest and most established subsidized childcare system. Rather than CWELCC fee reductions, Quebec runs its own framework under the Act respecting educational childcare services, administered by the Ministere de la Famille du Quebec.

Current daily fees (contribution reduite):

• 2025: $9.35/day (all parents pay this single subsidized rate)
• 2026: $9.65/day (indexed automatically each January 1)

Quebec fees are not reduced through a federal agreement. They are set provincially each year and already represent one of the lowest childcare costs in the country. The rate covers up to 10 hours of care per day, including one meal and two snacks.

Quebec childcare takes four forms: CPEs (Centres de la petite enfance, non-profit, parent-governed), subsidized private daycares (garderies subventionnees), non-subsidized private daycares (market rate), and recognized home childcare services.

See the full Quebec section in our Provincial Licensing Checklist for CPE governance, staff qualifications, ratios, and the new 2025 registration portal.

CWELCC Tracking in Sprout and Vine

Manually tracking CWELCC subsidies, verifying fee caps, and preparing documentation for your program advisor is one of the most time-consuming administrative tasks operators face today. Sprout and Vine automates this:

• Automatic subsidy calculation per enrolled child based on your CWELCC funding agreement
• Fee cap alerts if billing would exceed the $22/day cap
• Wage enhancement tracking for RECE and supervisor wage requirements
• Inspection-ready reports that show your fee structure, subsidy amounts, and compliance documentation in one place
• Annual fee change notifications automatically pushed to enrolled families when fee schedules update

Frequently Asked Questions