New $10 a day childcare deal a potential challenge for private daycare owners

The new $10 a day child care deal between Ontario's provincial government and the federal government has brought relief for families, but potential challenges for private day care owners.

Carol Morrison, owner of the independent private daycare Little Angels Day Care, joined The Sam Laprade Show on April 1, 2022, to discuss the decisions she will have to make now that the deal has been made.

“I have to look at my choices now on whether to get licensed or to stay private,” said Morrison. “There's a huge disadvantage to me in terms of wages to go with an agency, so overall, the plan is great for parents, it's not good for private daycare operators.”

Morrison says to offer reduced fees to families, she would have to get licensed under an agency. If she was licensed, the agency would be able to control things like wages, the child-to-caretaker ratio, certain training requirements, and some other health and safety rules put in place at her daycare.

“I would no longer be running my own small business,” said Morrison.

A reason many of the families continue to send their kids to Little Angels Day Care is based on the child-to-caretaker ratio, according to Morrison. She runs her day care at a ratio of one caretaker to three-and-a-half children, the half being a child who only attends two to three times per week.

“I guess my biggest issue for me personally, is I'd lose about a third of my salary and that's very significant,” said Morrison. “The other significance for me personally is I run a low ratio daycare… but that means that my fees have to be set at a certain rate in order for me to earn a reasonable living.”

The deal reached between the provincial and federal governments is a five-year deal aiming to reduce child care fees for children under six on average by 25 per cent as of April 1, 2022. By the end of December 2022, they are trying to have fees reduced by 50 per cent, and by March of 2026, they have set a target of $10 a day child care.

Morrison says she's faced with two options: to remain a private daycare and require families to pay the same price they pay now, or to get licensed and offer lower fees, but as a result be forced to increase the number of children she cares for daily.

Listen to the full interview with Morrison below: