Federal Support for Early Childhood Development and Early Learning and Child Care

The Government of Canada has provided funding to provinces and territories in support of early childhood development (ECD) and early learning and child care (ELCC) through the following agreements:

Early Childhood Development (2000)

• Under the September 2000 Early Childhood Development Agreement, the Government of Canada committed to an initial investment of $2.2 billion over five years (2001-02 to 2005-06) to provinces and territories to improve and expand early childhood development programs and services.

• Four key areas of support were identified: healthy pregnancy, birth and infancy; parenting and family support; early childhood development, learning and care; and community support.

• Under this Agreement, governments committed to report on investments and their progress in expanding early childhood development programs and services within the four areas for action, using a shared framework of comparable indicators.

• Budget 2003 confirmed the Government’s ongoing funding commitment of $500 million annually after 2005-06. These funding commitments will flow through the Canada Social Transfer (CST).

• ECD support amounts to $500 million in 2005-06, and in subsequent years.

Early Learning and Child Care (2003)

• Building upon the early childhood development commitments made by First Ministers in 2000, Budget 2003 initially set aside $900 million over five years (2003-04 to 2007-08) in increased federal support to provinces and territories to improve access to affordable, quality provincially and territorially regulated early learning and child care programs and services.

• On March 13, 2003, federal/provincial/territorial Social Services Ministers reached a framework agreement for the provision of these funds. Governments have committed to report to Canadians on progress achieved in improving access to early learning and child care programs and services.

• In addition, the 2004 Budget provided an increase in early learning and child care funding of $75 million annually in both 2004-05 and 2005-06. This will bring total support over the first five years to $1.05 billion, to be provided through the CST.

• Early learning and child care support amounts to $225 million in 2005-06, $300 million in 2006-07, and will rise to $350 million in 2007-08, and in subsequent years.

Support for First Nations and Aboriginal Children

• To complement the 2000 ECD Agreement with provinces and territories, the Government provided $320 million over five years (2003-04 to 2007-08) for early childhood development programming for First Nations and other Aboriginal children.

• Within the 2003 ELCC Framework, the Government committed a further $35 million over four years (2004-05 to 2007-08) for early learning and child care services for First Nations children living on reserves. Budget 2004 provided a subsequent increase of $10 million over four years (2004-05 to 2007-08), bringing the Government of Canada’s total support to $45 million.

Provincial and Territorial Allocation of Funds

• As of April 1, 2004 funding for early childhood development and early learning and child care is transferred to provinces and territories through the Canada Social Transfer (CST).

• CST is provided to provinces and territories on a per capita cash basis to ensure equal support for all Canadians regardless of their place of residence.

Early Learning and Child Care 2003 ($ millions)
	2003-04	2004-05	2005-06	2006-07	2007-08	Total
Newfoundland and Labrador	0.4	2.4	3.6	4.8	5.5	16.7
Prince Edward Island	0.1	0.6	1.0	1.3	1.5	4.5
Nova Scotia	0.7	4.4	6.5	8.7	10.0	30.4
New Brunswick	0.6	3.5	5.2	6.9	8.0	24.4
Quebec	5.9	35.4	53.0	70.5	82.0	246.8
Ontario	9.7	58.2	87.4	116.9	136.7	408.8
Manitoba	0.9	5.5	8.2	10.9	12.7	38.2
Saskatchewan	0.8	4.7	6.9	9.2	10.6	32.1
Alberta	2.5	15.0	22.7	30.3	35.5	106.1
British Columbia	3.3	19.7	29.7	39.6	46.4	138.8
Nunavut	0.02	0.1	0.2	0.3	0.3	1.0
Northwest Territories	0.03	0.2	0.3	0.4	0.5	1.4
Yukon	0.02	0.1	0.2	0.3	0.3	1.0
TOTAL	25.0	150.0	225.0	300.0	350.0	1,050.0
Note: Payments are notionally provided under the Canada Health and Social Transfer (CHST) in 2003-04 and under the Canada Social Transfer (CST) for 2004-05 and beyond. Figures are based on Statistics Canada population estimates up to 2005-06 and Finance Canada population projections for 2006-07 to 2007-08. All figures are subject to revision upon periodic release of Statistics Canada official population estimates. Totals may not add due to rounding.

Early Learning and Child Care Initiative (2005)

• In addition to funding under the CST, the 2005 Budget committed additional funding to support the Early Learning and Child Care Initiative (ELCCI) across the country. Funding of $700 million over 2004-05 and 2005-06 has already been provided to provinces and territories.

• Consistent with the provisions of the existing ELCC agreements with provinces, the Government will provide $650 million in 2006-07 to all provincial and territorial governments; these funds are to be distributed on an equal per capita basis.

Universal Child Care Plan (2006)

• The Government is introducing a new Universal Child Care Benefit (UCCB), which will provide direct support to parents through monthly payments of $100 for every child under the age of 6, effective July 1, 2006.

• The Government also intends to establish a program to support the creation of child care spaces. Budget 2006 sets aside $250 million per year for the new program, beginning in 2007-08.

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