With the upcoming reduction to $15 per day for families using regulated child care services under the Operating Grant Program (OGP), today the Honourable Tom Osborne, Minister of Education, announced corresponding changes to the Child Care Subsidy net income threshold for all child care services. As well, Minister Osborne announced the elimination of parental contributions under that program to support lower-income families in accessing regulated child care at a reduced or no cost.
This change will also result in the elimination of parental contribution for all eligible Child Care Subsidy clients and free child care for eligible families using a child care service participating in the Operating Grant Program.
As of January 1, 2022, the net income threshold will increase from $35,000 for full subsidy to a range from $41,000 to $77,000, based on the number of children attending a regulated child care service (please see information in the backgrounder below).
There are approximately 1,200 families currently receiving a subsidy under the Child Care Services Subsidy Program to attend regulated child care services.
This change is being made one year ahead of schedule, as under the Federal-Provincial Action Plan on Early Learning and Child Care, announced in July, parental contributions were set for elimination in 2023.
More information on the Child Care Subsidy Program can be found here.
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“As a Provincial Government, we continue to take actions to remain on the forefront of affordable childcare in this country. From the introduction of $25 per day child care at the beginning of this year to being one of the first provinces to sign an Early Learning and Child Care agreement with the Federal Government, we continue to move forward deliberately toward more accessible and affordable child care for families in Newfoundland and Labrador.”
Honourable Tom Osborne
Minister of Education
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Education
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BACKGROUNDER
Child Care Subsidy Net Pay Income Threshold Changes, January 1, 2022
| Number of Children* | Maximum Qualifying Yearly Net Income | Fees required by parents/guardians |
| 1 | $ 41,000.00 | None |
| 2 | $ 47,000.00 | None |
| 3 | $ 53,000.00 | None |
| 4 | $ 59,000.00 | None |
| 5 | $ 65,000.00 | None |
| 6 | $ 71,000.00 | None |
| 7+ | $ 77,000.00 | None |
*Note: Under existing threshold, maximum qualifying net income is $35,000, regardless of number of children.