Federal support for children investments over time

Universal Child Care Plan (2006 and 2007)

• The new Universal Child Care Plan, announced in Budget 2006, comprised two elements:
  • Universal Child Care Benefit (UCCB): provides direct support to parents through monthly payments of $100 for every child under the age of 6, effective July 1, 2006. In 2008-09, the UCCB is estimated to provide $2.4 billion to Canadian parents through monthly payments.
  • Increased support for child care spaces: Budget 2007 fulfilled the commitment to provide $250 million annually for development of child care spaces by increasing support to provinces and territories, and by introducing a 25% investment tax credit for businesses that create new child care spaces in the workplace.

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 (ELCC) initiative across the country. Funding of $700 million over 2004-05 and 2005-06 has been provided to provinces and territories.
• Consistent with the provisions of the existing ELCC agreements with provinces, the Government provided $650 million in 2006-07 to all provincial and territorial governments; these funds were distributed on an equal per capita basis.

Early Learning and Child Care Framework Agreement (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.  Budget 2007 also announced that funding in support of early learning and child care will be extended to 2013-14.

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 an equal per capita cash basis to ensure equal support for all Canadians regardless of their place of residence.

Early Childhood Development Agreement (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 for an additional two years.  Budget 2007 extended the Government’s ongoing funding commitment to 2013-14.

- Major Federal Transfers -