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March 30, 2021

Childcare Reform Key to Post-COVID Economic Recovery

  • More accessible and affordable childcare will be crucial in determining whether parents can resume their pre-COVID growth in employment and wages.
  • In contrast to calls for a nationalized childcare system, in “Aggressive Incrementalism: Strengthening the Foundations of Canada’s Approach to Childcare,” authors Ken Boessenkool and Dr. Jennifer Robson argue that an expanded role for the federal government will not be the panacea many hope for. They propose a raft of reforms that would expand funding and daycare spaces building on structures already in place.
  • The authors recommend replacing the existing Child Care Expense Deduction (CCED) with a more generous, progressive and more frequently paid refundable tax credit, as well as redoubling provincial efforts to increase childcare spaces by increasing operating and/or capital grants for licensed providers. Furthermore, federal dollars for childcare should be consolidated into a single, dedicated and permanent transfer to provinces, focused first on expanding the supply of licensed childcare spaces.