Today, the Honourable Krista Lynn Howell, Minister of Education, announced two initiatives recommended through the Operating Grant Program review to improve access to early learning and child care services throughout the province. The Minister made the announcement at Riddles and Rhymes Daycare in St. Anthony, and was joined by Riddles and Rhymes Daycare administrator, Jennifer Smith.
The first measure will increase the minimum enrolment threshold for regulated child care centres participating in the Operating Grant Program. The threshold for those centres to receive full grant funding will increase from 70 per cent enrolment to 90 per cent enrolment. This change will come into effect on April 1, 2024. Regional staff from the Department of Education will work with all child care centers to maximize capacity and minimize operational impact. Rural and remote services will not be financially impacted by the increase in enrolment threshold.
In recognition of the unique geographical, staffing, and enrollment challenges that may be experienced in non-urban areas of the province, government is introducing a Rural and Remote Allowance for regulated child care services in rural and remote areas of the province who participate in the Operating Grant Program. This includes centres, family child care homes, and pre-kindergarten programs.
The Rural and Remote Allowance will provide those child care services with an additional 10 per cent of their operating grant funding. This initiative will provide support for those service providers facing unique challenges, and may help offset any potential impact from the increased enrolment threshold.
Over 80 child care services will be eligible to receive the Rural and Remote Allowance. Further information on eligibility is outlined in the backgrounder below.
The Rural and Remote Allowance supports commitments made as part of the $306 million invested through the Canada-Newfoundland and Labrador Canada-wide Early Learning and Child Care Agreement. Through this agreement, the Governments of Canada and Newfoundland and Labrador are working together to improve access to high-quality, affordable, flexible, and inclusive early learning and child care programs and services.
The Government of Newfoundland and Labrador is committed to providing high quality, affordable child care that is accessible throughout the province. There are currently over 8,600 early learning and child care spaces operating at $10-a-day or less in the province, with almost 1,200 child care spaces created in 2023.
Quotes
“Our government remains committed to improving access to early learning and child care. This grant will address some of the challenges that are being experienced in rural and remote areas, and we look forward to continuing to work with our partners to best meet the needs of children and families in Newfoundland and Labrador.”
Honourable Krista Lynn Howell
Minister of Education
“The Operating Grant Program is a timely response to challenges that rural and remote communities are facing when it comes to providing access to high-quality, affordable, flexible and inclusive child care services. Newfoundland and Labrador continues to do great work in delivering the support that families need. I am glad to see that this grant will help ensure that centres are able to continue to provide high-quality care and meet the needs of families and children, no matter where they live.”
Honourable Jenna Sudds
Minister of Families, Children and Social Development
“This is about helping families with kitchen table issues, because no matter where you live, affordable childcare is common sense. It’s good for families, and it’s good for our kids. This will make sure families in small, rural and remote communities have access to the kind of care that meets their needs.”
Honourable Gudie Hutchings
Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency
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Learn more
Operating Grant Program
Review of the Operating Grant Program for Child Care Services Completed
Canada-Newfoundland and Labrador Canada-Wide Early Learning and Child Care Agreement
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BACKGROUNDER
Rural and Remote Areas
For the purposes of this initiative all Labrador communities are considered remote, and rural communities are all communities except those defined as a part of Census Metropolitan Area (CMA) or Census Agglomerations (CA) as per 2021 Population Counts.
Further Incentives for Early Learning and Child Care in Rural and Remote Areas
- Regulated child care services in Labrador receive an automatic 15 per cent increase to the base Operating Grant Program rates.
- Regulated child care centres located in the Labrador region can avail of an additional 15 per cent rate escalator for personnel expenditures. Eligibility is determined by assessing financial statements submitted from the child care centre.
- A Labrador Allowance bonus provides an annual amount of $5,178 to every early childhood educator working in a regulated child care centre in Labrador participating in the Operating Grant Program.
Operating Grant Program
The Operating Grant Program helps address affordability of child care services for families with young children. Effective January 1, 2023, regulated child care services participating in the Operating Grant Program were supported to lower their rates to $10 per day for infant, toddler, and preschool participants; $4 for afterschool care; and, $5 for before and after school care. The Operating Grant Program is a key component of the Canada-Newfoundland and Labrador Canada-wide Early Learning and Child Care Agreement. As part of the agreement, the Newfoundland and Labrador government committed to exploring potential enhancements to the program to ensure that regulated operations remain financially viable, and to retain and attract new early childhood educators.
In January 2024 the Provincial Government released a report outlining a review of the Operating Grant Program for child care services in Newfoundland and Labrador. The report includes six opportunity areas for improving the Operating Grant Program, including governance; funding and rates; program policies, processes and requirements; accountability; workforce; and, system enablers.
Canada-Newfoundland and Labrador Canada-wide Early Learning and Child Care Agreement
The Canada-Newfoundland and Labrador Canada-wide Early Learning and Child Care Agreement is increasing access to regulated child care through the creation of nearly 6,000 spaces by 2025-2026, as well as improving affordability, inclusivity and quality of early learning and child care programming in Newfoundland and Labrador. This plan is made possible by federal investments in the Canada-wide Early Learning and Child Care system. These include $306 million for the 2021-2022 to 2025-2026 Canada-Newfoundland and Labrador Canada-wide Early Learning and Child Care Agreement, a one-time investment of nearly $6.5 million in 2021-2022 to support the early childhood workforce, as well as over $34 million for the 2021-2022 to 2024-2025 Early Learning and Child Care Extension Agreement.