Starving out women-led businesses in the name of feminism

Canada’s federal election is about a lot of things, but one issue not getting the attention it deserves is childcare policy. I know childcare centre operators have been struggling, and recently I’ve learned it’s even more egregious than I first thought.

The Government of Alberta previously provided subsidies for childcare based on a family’s household income (the lower the income, the larger the subsidy). The subsidies were paid directly to centres chosen by parents, and parents paid the difference. This was destined to change when the federal government got involved and told Canadian families they’d bring in $10-a-day daycare, but —likely purposely —failed to mention that the money will only flow to the provincial governments with major strings attached.

When I first enrolled my child in daycare in Alberta in the fall of 2021, I had my choice among the centres in the area. I went on tours, and they all tried to win me over with their unique offerings, whether it was an indoor gym, two afternoon snacks instead of one, or a spacious outdoor play area. Some centres advertised a free first month. The fees I encountered in Sherwood Park were in the $900-$1200 per month range for my 16-month-old, before possible additional subsidies.

Overnight, on January 1, 2022, fees were cut approximately in half ($450-$600 range) for everyone after the federal government came to an agreement with the provincial government to provide “affordability grant funding.” Many parents immediately responded by moving their kids from day homes or preschools to daycares (previously, these were usually a bit less expensive than daycare), so many day home and preschool operators lost their businesses. As someone who pays attention to online forums and Facebook marketplace, I noted day homes liquidating their toys. There was also chatter among moms about stay-at-home parents putting their children into daycare since it was so cheap (relatively speaking), but with no intention of using that time to find employment or to study. At least for the past couple of years (it may be changing now; it’s unclear), parents could use up a fulltime childcare spot but only bring in their child 3 or 4 days per month, still coming out farther ahead financially than if they were to casually pay a babysitter $15 per hour a few times per month.

Meanwhile, as demand went up, waitlists for daycares skyrocketed and some parents who really did need a space for their child struggled to find one. A daycare must be ready to expect a child registered fulltime to come in any day, even if they almost never do, and maintain the legally mandated staff-to-children ratio. Paying less is nice, but if there’s no space available for the children who really need one, how much is it helping them?

In theory, the childcare centres could have opted out and continued to charge their full market rate, but then they were also going to lose access to the wage top-ups for staff, and parents couldn’t apply their subsidy. Unless the centre catered to only high-income families (who often have nannies instead), the centre’s management reasonably determined that most if not all of their existing families would re-enroll in a centre where they would save hundreds of dollars per month, and they’d go out of business almost immediately. To suggest the centres had a “choice” is misleading when the choice is one between staying in business or shutting down. Therefore, almost all existing childcare centres in Alberta signed up for the government’s affordability grant funding with the various strings attached. One of the strings attached for childcare centres is that the fees they charged in 2021 had to be frozen.

Now, as of April 1, 2025, the provincial subsidy for parents is gone and every parent pays the same per child ($326.25, working out to $15/day), regardless of whether you’re a single parent who can barely make ends meet, or a double-income household earning $250,000 per year. For low-income parents, $326.25 is a significant monthly increase for them upon losing the subsidy, for higher income households, it’s a reduction.

The centre must charge parents $326.25 per child, and then the government dictates to the centre how much extra the government will fund per child. The government established brackets estimating the average cost of providing basic childcare to a child in a certain age range, in various regions of Alberta. My understanding is that if a centre’s 2021 fee fell within that bracket, it stuck, otherwise they were brought up to the lowest level of the average fee or brought down to the maximum. Within that limited range, all centres receive the same level of revenue per child, regardless of whether they already own the building space and only pay property tax or whether they pay a high commercial monthly rent. Similarly, upon my review of the policies, I don’t see accommodation for smaller centres that do not benefit from economies of scale. The long-established centres run by compassionate owners who tried their best not to raise fees during the pandemic got locked into lower rates. The newer centres that first established their rate at a higher level are likely currently in a better situation.

Being told what they can charge parents and told what they’ll receive from government, with no room for negotiation, means that childcare operators have no means of increasing revenue even if their building lease goes up hundreds of dollars, if they want to give their staff a raise, or the cost of food goes up (which it did since 2021). It’s unreasonable and unsustainable. Not to mention the government is also now burdening operators with costly administrative and reporting requirements, given they must be “accountable” given the significant amount of tax dollars being received. As a parent, I’d personally rather the focus be on providing an awesome program and paying attention to my kids, not on paperwork and finding ways to further reduce expenses so they can afford an accountant or auditor.

The government might toss the word “quality” into press releases about childcare, but this is in no way about quality. Current policies will only cause a reduction in quality childcare services in Alberta. Now, anything beyond the core services to meet regulatory requirements must be considered “supplementary” by the childcare centre and is not included in the average costs of providing care estimated by the government. The centre can offer services above and beyond the basic core provisions to be licenced, but it is mandated that these be an optional service for all clients, and centres cannot refuse or dismiss a client for not opting in.

One service that many childcare centres in Alberta had offered to all the children in their care was meal provision (breakfast and/or lunch). Now, the government instead expects parents to pack their children lunches, because the government is not going to fund the centres enough to provide meals. Centres are permitted to charge parents an additional fee to provide their kids with lunch, but some parents will opt out, especially if they are in a low-income bracket and their childcare fees went up with the subsidy loss. Now, apparently in the name of equality, some children will be served a hot lunch while their friend next to them eats something from home. Administratively and logistically, this is also harder work for the daycare staff, whom also have to hope and pray that parents quickly packing lunches will not include something to which another child in the centre is deathly allergic. To make early childcare educator jobs even more difficult, many Alberta parents are currently upset at childcare operators and workers for what’s the fault of the government.

Allegedly to get more women in the workforce, the federal government announced a national childcare program that it explicitly wants to be public/non-profit, discriminating against private childcare centre owners, ironically the vast majority of whom are women, cutting them off at the knees. The Government of Alberta, under Minister Rebecca Schulz at the time, had to fight hard for private operators to be eligible to receive the affordability grant funding flowing to the province from the federal government. It seems it may have bought them time, but the federal government's ultimate goal of starving them out and replacing them with non-profit centres (under the guise of feminism) seems to be well on its way.

There are pros and cons to different models of running a childcare centre. Don’t let anyone fool you that a non-profit model is always superior. Bad actors are found across society, whether it’s in public institutions or private industry. For anyone to suggest that the people who choose to work in the field of childcare are greedy capitalists is ludicrous. The field attracts some of the most nurturing, kind, and creative people. People who look upon private childcare operators with suspicion should go out and meet and talk to them. Early childhood educators arguably already do not get paid enough for changing dozens of poopy diapers each day, comforting homesick children, planning enough interesting activities to keep kids occupied during snow days, and dealing with parents requesting special accommodations. The government is hamstringing operators and making it harder for them to attract and retain staff because of compensation issues. As a parent, I do not want high turnover at my children’s daycare; I want staff who receive a living wage and enjoy their jobs.

I personally do not know of a parent who requested the status of whether a daycare is private or non-profit in determining whether it’s a good choice for their children. The question I see repeatedly asked in forums are for references of specific centres, with private and long-established centres consistently coming out on top. Parents want to know if their children will be safe and whether they will be loved, not whether the centre is privately owned.

To be clear, I want childcare to be affordable for parents, but the current system is unsustainable and unfair, and childcare also needs to be accessible and high-quality. If the government used the same amount of funding but prioritized getting it to the people who need it most (based it on income), and centres are given flexibility to run their centres as they envision as long as they meet regulatory standards, families will be better off.

All this to say, if you currently have a child in daycare, thank the staff for their hard work and show your support by advocating to the federal government to stop attaching strings to the childcare funding for provinces.