Manitoba triples number eligible for subsidized child care spaces

Manitoba is expanding eligibility for its child-care subsidy program to reduce out-of-pocket fees for parents with children in regulated care by 30 per cent on average, Prime Minister Justin Trudeau and Premier Heather Stefanson said Thursday.

"Half a year ago, we said that parents in Manitoba would see their child-care fees cut in half by the end of 2022. We're well on our way to reaching that target," Trudeau said during a news conference, appearing virtually from Ottawa.

Manitoba is increasing its annual subsidy funding to $82.7 million, with $64.5 million coming from the federal government, to implement a new subsidy eligibility threshold.

The new eligibility, which applies to children 12 weeks to 12 years old, starts Sunday.

It will see the net household income threshold — and allowable deductions for the subsidy program — increased by 45 per cent. Households with an average net income of $23,883 to $37,116 will be eligible for a full subsidy, while the income threshold for a partial subsidy will range from $37,542 to $82,877, a news release said.

Of the 38,000 spaces available in the regulated child-care system, 6,000 children, or 16 per cent, currently receive a full or partial child-care subsidy.

It is estimated 12,000 more children will be able to receive support under the new threshold, tripling the current number.

"Today's announcement will allow more Manitoba families to participate in the labour market and maintain employment," Stefanson said.

Last August, Manitoba signed on to the federal plan to provide child care at an average cost of $10 a day in regulated child-care spaces by March 2023.

Under the plan, the federal government promised to spend $1.2 billion to fund early learning and child care in Manitoba over the next five years.

"Today, we can announce that thousands of families will be saving money on child care earlier than planned," Trudeau said during Thursday's news conference.

The COVID-19 pandemic has increased costs for many people, so cutting child care expenses will free up money for other priorities like groceries, gas "and what they need to get through winter," Trudeau said.

Access to child care will be a key element to post-pandemic growth and prosperity, Stefanson said.

"Our government, along with the federal government, is committed to ensuring working women and families have the supports they need to return to employment, attend training programs and return to the classroom," she said.