TORONTO — Ontario is falling short on key commitments under the national $10-a-day child-care program, with the province unlikely to meet its goals on fees, space creation, or staffing, according to a new report from Auditor General Shelley Spence.
The report, released Wednesday, shows that while several provinces have already reduced fees to an average of $10 per day, Ontario is on track to miss that milestone unless significant changes are made. Fees in Ontario are currently capped at $22 a day, down from $48 before the program began, but the auditor warned they could rise to $32 a day by April 2026 if a looming funding gap is not addressed.
Ontario has already spent its five-year share of federal funding in just four years, leaving a $1.95-billion shortfall next year. “If you start with the highest costs and use the funding in four years instead of five, the math is simple—you end up with a deficit,” Spence said.
Education Minister Paul Calandra acknowledged the challenge, saying Ontario cannot meet the $10-a-day target without additional federal support. “I don’t think we will be in a position to meet the program as set up by the federal government unless they are willing to step up to the plate,” he said, adding that negotiations have not yet begun.
The report also highlights significant gaps in space creation and workforce capacity. Ontario pledged to create 86,000 new spaces by December 2026, but has only reached 75 per cent of its interim target. Even if the goal is met, demand will still outstrip supply by more than 220,000 spaces. Staffing shortages remain another critical barrier, with an estimated 10,000 additional early childhood educators (ECEs) needed by 2026, up from the province’s initial projection of 8,500.
“About 27 per cent of spaces within the $10-a-day program aren’t even in use because operators can’t find enough staff,” Spence noted.
Amber Straker, executive director of the Association of Early Childhood Educators Ontario, said the findings should be a wake-up call. “We won’t improve access to child care until we improve decent work and pay for those providing the care,” she said.
Spence also criticized the government’s decision to reassign space-creation targets last year toward regions that could more quickly build capacity, rather than areas with the greatest need.
The auditor’s findings come as Ontario’s agreement with Ottawa is set to expire on March 31, 2026, with no extension yet signed.