Child care costs highest in Toronto, lowest in Quebec, study finds

A new report says child-care costs have increased across thecountrybut parents in some regions Toronto in particularare feeling the pinch much more than most.

The study by the Canadian Centre for Policy Alternatives tracksthe price of child care across 27 Canadian cities and three agegroups:infants, toddlers and preschoolers.

Child-care fees were highest in Toronto across the board, withparents facing median costs of more than a $1,000 regardless of what age group their children fall in.

Quebec marks the other end of the spectrum, where governmentpolicies have capped child-care fees at $174 a month across all agegroups.

The study also found that space in regulated child-carefacilities was hard to come by in every city and lengthy waiting
lists were common.

The report by the CCPA a think-tank that describes itself as a"progressive voice" in public policy debates says the numberssuggest the need for all levels of government to get involved andinvest in a more affordable child-care system nationwide.

It's very much an accidentof birth as to whether[parents] can find affordable childcare or not.- Economist and report co-author David Macdonald

Senior economist and report co-author David Macdonald said thevariation among regions is both striking and concerning.

"It's very much an accident of birth as to whether they can findaffordable child care or not," Macdonald said in a telephoneinterview.

"One of the starkest differences is in Ottawa ...You payfive times more for the same pre-school space one kilometre away inGatineau compared to in Ottawa."

Cost variations are not always so starkly illustrated, but thecentre's report suggests that fees cover a broad spectrum across thecountry.

Median costs for infant care in Toronto, which equal $1,736 amonth, are noticeably higher than they are in second-placeNewfoundland and Labrador which still charges a hefty $1,400. Variations also exist among cities that place limits on theprices parents must pay.

Quebec is not alone in capping child-care costs for families, assimilar measures exist in Manitoba and Prince Edward Island.

While all cities in Quebec offer child care at $174 a month,however, parents in Winnipeg must shell out a median of $651 amonth. The number rises to $738 in Charlottetown.

On average, child-care costs across the country rose five percent over levels documented in 2014, the report said, adding much ofthe increase was tied to an adjustment of the provincial cap inQuebec.

Such an increase is no news to Jane Mercer, who's watched theupward trajectory of with rising alarm for more than two decades.

When her own children were enrolled in Toronto day cares 27 yearsago, she paid $1,540 a month for an infant and $880 a month for apreschool-age child over the age of three.

Now, in her capacity as executive director for the TorontoCoalition for Better Child Care, she said she's watched the problemintensify and leave families struggling to stay afloat.

'A labour-intensive industry'

Mercer attributes the rising costs to the staffing-relatedchallenges the industry faces.

She said most child-care centres spend nearly 85 per cent oftheir budgets on hiring the most qualified staff they can find andeither staying within or exceeding provincially mandated child-to-adult ratios. This trend is unlikely to change, she said, sincethere is no substitute for qualified employees.

"It's a labour-intensive industry," Mercer said. "We can'tautomate it and reap those efficiencies. That is at the heart of thewhole problem."

While budgets may be largely consumed by staff salaries,Macdonald said those workers are taking home unusually low wages.

The report pegged the average salary of an early childhoodeducator at $25,000, noting that many of them would be unable toafford to put their own children into the system.

Both Macdonald and Mercer agree that provincial and federalgovernments should take a more active role in reversing the trend.

Macdonald is hopeful based on the focus child care receivedduring the federal election. All three parties featured child-carebenefit programs in their platforms, with the new Liberal governmentplanning to earmark $22 billion to help families with theirballooning costs.

Macdonald said systems like Quebec's, in which parent fees arecapped as governments make up the difference, offer a viablesolution.

"That appears to be the most effective way in Canada to reducefees for middle class families," he said. "If you have a system inwhere it's just in essence decided without government, you end upwith situations like Toronto."