If you are a parent of a young child in Ontario, you have probably done the math: the cost of child care can feel overwhelming. You need to work, but you also need a safe, loving environment for your child while you do. The numbers do not always add up. Even with two incomes, families are constantly juggling expenses, wondering if they will ever catch a break.
But what if we told you that affordable licensed home daycare is not just a dream—it is already happening? Thanks to two key financial support programs in Ontario, parents are saving hundreds, even thousands of dollars each year on licensed home daycare. Yet, so many families do not realize what is available to them.
If you have ever thought, “Why is child care so expensive?” or “How do other parents afford daycare?”, keep reading. You might be missing out on financial support that could change everything for your family.
The $10-a-Day Child Care Plan: What Is CWELCC?
You may have heard whispers about Canada-Wide Early Learning and Child Care (CWELCC)—the federal and provincial plan to reduce child care costs to just $10 per day by 2026. It sounds great, right? But what does it actually mean for you right now?
As of January 1, 2025, licensed home daycares participating in CWELCC are required to cap their fees at $22 per day. That is a game-changer.
Here is how it works:
- If your licensed home daycare is part of CWELCC, you do not have to apply for anything—your daycare will automatically lower your fees.
- The reduction applies to all families, no matter their income.
- CWELCC only applies to licensed child care providers, so if your current home daycare is unlicensed, you will not see the discount.
- It is available for children under six years old (or until the June before they start Grade 1).
For parents who were previously paying $50 or more per day, this reduction means saving more than $700 per month on daycare costs. Imagine what you could do with that extra money in your budget.
But what if $22 per day still feels like too much? That is where the second program comes in.
Child Care Fee Subsidy: How Some Parents Pay Even Less
Not every family can afford even the reduced CWELCC rates, and the Ontario government understands that. The Child Care Fee Subsidy is designed to help lower-income families by covering part—or even all—of their child care costs.
Unlike CWELCC, which is available to everyone, the subsidy is based on income. You need to apply, and your local government will determine how much support you qualify for.
How does the subsidy work?
- If your household earns below a certain amount, you may qualify for partial or full coverage of your child care fees.
- The subsidy can be combined with CWELCC—so if your daycare fee is already reduced to $22 per day, the subsidy may reduce it even further (or even to zero).
- It is available for children up to 12 years old, unlike CWELCC, which stops before Grade 1.
- You need to provide financial documents (such as tax returns or pay stubs) to prove eligibility.
Think of it like this:
- CWELCC makes daycare more affordable for everyone.
- The subsidy is for families who still need extra help beyond CWELCC.
Many parents do not even realize they qualify for the subsidy because they assume they earn too much. But the only way to know for sure is to apply.
CWELCC vs. Child Care Subsidy: What Is the Difference?
By now, you know that Ontario has two major financial support programs for families using licensed child care: CWELCC and the Child Care Fee Subsidy. Both help reduce costs, but they work in very different ways—and many parents are unsure which one applies to them.
The good news? You do not have to choose between them—you can benefit from both at the same time. But understanding how each program works can help you plan your child care budget and make sure you are getting every dollar of support available.
Here is a quick breakdown of how CWELCC and the Child Care Fee Subsidy compare:
| Feature | CWELCC | Child Care Fee Subsidy |
|---|---|---|
| Do I need to apply? | No, it is automatic if your daycare participates. | Yes, you must apply and qualify based on income. |
| Who is eligible? | All families with children under 6 in participating licensed daycares. | Families with children up to 12 years old who meet income requirements. |
| How much does it reduce costs? | Lowers daycare fees to $22 per day (as of 2025). | Can cover part or all of your remaining daycare costs. |
| Does income matter? | No, all families get the same reduction. | Yes, support is based on financial need. |
| Can I use both? | Yes! CWELCC lowers your costs first, and then the subsidy can cover even more if you qualify. | Yes, families in CWELCC daycares can still apply for extra help. |
| Where does it apply? | Only in licensed home daycares and daycare centers that are part of CWELCC. | Any licensed child care program that accepts subsidies. |
Maximizing Your Savings: Why This Comparison Matters
Understanding the difference between these programs can save you a lot of money.
Think of CWELCC as a universal price cut—everyone in a participating daycare automatically pays less. The subsidy is extra help for families who still struggle to cover the cost, even with CWELCC.
And here is what many parents do not realize: if you qualify for a subsidy, it is applied after CWELCC lowers your fees. That means your child care costs could drop even further—or even disappear altogether.
Now, let’s talk about what that looks like in real numbers.
What This Really Means for Your Wallet
Let’s break it down with a real-life example—because numbers speak louder than promises.
Imagine you are a parent in Toronto, paying $1,200 every month for a licensed home daycare. That is a major expense, right?
Then CWELCC kicks in. As of 2025, the daily rate drops to $22 per day, bringing your monthly cost down to about $460. That is already a huge relief—$740 saved every month without you having to do anything.
But what if even $460 feels like too much? That is where the Child Care Fee Subsidy comes in. If you qualify, it could cut that cost in half—leaving you with just $230 per month to pay out of pocket.
And for some families, the subsidy covers everything. Yes, you read that right—completely free licensed home daycare. Something many parents never thought possible, but it is happening right now.
How to Get Started: What You Need to Do Next
Now that you know what is available, what should you do?
Step 1: Make Sure Your Daycare is Licensed and CWELCC-Approved
Not all home daycares participate in CWELCC. Better Than Home’s licensed home daycares are already part of the program, which means parents automatically receive the fee reduction.
Step 2: Apply for the Child Care Fee Subsidy
Even if you are not sure you qualify, apply anyway. Many parents assume they make too much to receive help, but the only way to know for sure is to go through the application process.
Step 3: Secure Your Spot in a Licensed Home Daycare
With lower costs, licensed home daycare spots are filling up fast. We are currently accepting applications for 2025-2026 for children under four years old.
You Should Not Be Paying More Than You Have To
If child care costs are stretching your budget, you are not alone. So many parents feel stuck, thinking there is no way around the high prices of daycare. But here is the truth—help is available, and you have every right to use it.
Too many families are paying more than they need to simply because they do not know their options. CWELCC is already cutting daycare costs for everyone, and if your budget is still tight, the Child Care Fee Subsidy can lower your costs even more—or even bring them to zero.
At Better Than Home, we are making licensed home daycare more affordable, accessible, and stress-free for parents across Ontario. If saving money while securing safe, high-quality care for your child sounds like a win, let us help you make it happen. Apply now!
