Public and non-profit provision

To protect the transformed child care system and public resources, expansion of publicly funded early learning and child care (ELCC) must be limited to public and non-profit services.

Expanding for-profit ELCC provision is a risky business

In 2023, 29% of child care centre spaces Canada-wide were for-profit, with many families relying on the for-profit sector for child care. The policy solution adopted under the Canada-wide Early Learning and Child Care (CWELCC) system is to fund existing for-profit services for all ELCC operators in receipt of public operational funding and ensure that new expansion is primarily non-profit or public.

Further for-profit growth would be detrimental to building a universal, equitable, high quality child care system. Evidence shows that for-profit child care compromises staff compensation, quality, and equity, as well as the preservation of regulations and progressive social policy.

For-profit child care has been consolidating

For-profit child care owners have been consolidating across provinces, countries, and globally, with large providers – increasingly backed by private equity firms – buying up small for-profit providers. Evidence shows control of child care by large corporate providers is likely to be inequitable and unaccountable. Canada’s significant new child care funding has created a magnet for large investment firms seeking profitable “assets.” This demonstrably carries potential dangers to Canada’s child care goals.

As Canada’s aim is to build a publicly funded and managed, accessible, affordable, high quality, and equitable ELCC system, expanding for-profit services is inconsistent with this aim. To achieve and protect Canada’s stated ELCC goals, child care expansion must be primarily public and non-profit.