Province Will Pay N.S. Operators To Make Up For Lower Daycare Fees
HALIFAX–The provincial government is increasing funding to private daycares to offset a reduction in fees.
The province promised to cut daycare fees by 25 per cent in January as part of a joint provincial-federal plan to offer $10 a day daycare by 2026.
That prompted backlash from operators, who said they would not be able to stay open under the new fee structure.
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Provincial funding is increasing by 25 percent to match the drop in childcare rates.
Officials say the new funding agreement will be offered to all child-care providers, including previously unfunded or partially funded centres.
Operators must sign onto the new agreement by Apr. 1. Officials say it is essentially the same as previous funding agreements, save for the increase in funding.
The fee cut will take effect on Apr. 1 and be retroactive to Jan. 1. Parents will get a refund for 25 percent of the fees paid during that time.
According to the province, the fee reduction will save parents of toddlers $200 a month. The fees are set to be further reduced, to 50 percent, by the end of the year.
Operators will also be eligible for a one-time grant, based on a formula developed by the province, to help offset lost revenue from childcare fees which were frozen ahead of the 25 percent drop in childcare fees.
The government has set aside $1 million for the one-time grant.
Jack Morse is a reporter with CKHZ 103.5 in Halifax, a Huddle content partner.