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Funding Opportunities for Providers

Funding Opportunities for Providers

PELASS provides various types of funding to child care operators to help with expenses related to operating a licensed child care centre. To be eligible for funding, child care operators need to have a license and a Purchase of Service Agreement with PELASS.

Canada-Wide Early Learning and Child Care Program (CWELCC)

  • Ontario entered into a CWELCC agreement and signed a $13.2 billion agreement with the Government of Canada that delivers savings and relief to families. This includes lowering fees to an average of $10 per day for children 5 and under in licensed child care by 2025-2026.
  • Funding under the CWELCC agreement will be used to build and leverage the success of Ontario’s existing early learning and child care system by increasing quality, accessibility, affordability and inclusivity in early learning and child care, towards achieving the objectives of:
    • Providing a 25% fee reduction retroactive to April 1, 2022 building to a 50% reduction in average parent costs (based on 2020 levels) for licensed early learning and child care by the end of calendar year 2022 and reaching an average parent fee of $10 a day by 2025-26 for licensed child care spaces;
    • Creating 86,000 new high-quality, affordable licensed child care spaces (relative to 2019 levels), predominantly through not-for-profit licensed child care;
    • Addressing barriers to provide inclusive care; and
    • Valuing the early childhood workforce and providing them with training and development opportunities.

What does this mean for providers?

  • Licensed child care providers can choose to participate in the CWELCC system. As a licensed child care provider, you must apply to participate to help lower fees for parents.
  • Child care providers who enrolled and were approved as of November 1, 2022 will receive funding to reduce fees and increase staff compensation and must operate under specific guidelines. Enrollment in 2023 is a targeted approach.  More information will be shared once it becomes available.
  • Child care providers who do not participate in the CWELCC system must continue to follow the rules and regulations for operating a licensed child care program. They will not receive funding to reduce child care fees.

Grants & Funding

The purpose of the Wage Enhancement Grant is to:

    • Close the wage gap between Registered Early Childhood Educators (RECE) wages in the education sector and licensed child care sector;
    • Provide an additional $2.00 per hour wage increase and 17.5% in benefits to eligible positions;
    • Help retain RECEs;
    • Support access to stable, high-quality child care programs for children in Ontario; and
    • Support greater employment and income security.

All licensed child care agencies can apply for the Wage Enhancement Grant. To be eligible for the Wage Enhancement Grant, staff must:

    • Be employed with a licensed child care agency;
    • Have a wage below the wage cap; and
    • Be working as a child care supervisor, RECE, home child care visitor or otherwise counted toward adult to child ratios under the Child Care and Early Years Act.

Please complete the Application Form and return it to the children’s services department to apply for the Wage Enhancement Grant.

Please contact the Children’s Services office to access these forms.

The Home Child Care Enhancement Grant (HCCEG) supports an increase of up to $20 per day for home child care providers contracted with a licensed home child care agency. The funding is intended to:

    • Retain home child care providers to support stable, high quality child care programs for children; and
    • Support greater employment and income security.

All licensed home child care agencies whose head office is located in the Counties of Prince Edward or Lennox and Addington can apply for the Home Child Care Enhancement Grant. To be eligible for the HCCEG, providers must:

    • Hold a contract with a licensed home child care agency; and
    • Provide services to one child or more (including privately placed children; excluding the provider’s own children)
    • To receive a full HCCEG of $20 per day, providers must provide full time services on average (6 hours or more a day) and receive base daily fees that are at least $20 below the full grant cap.
    • To receive a partial HCCEG of $10 per day, providers are providing part-time services (less than 6 hours or more a day) and receive base daily fees that are at least $10 below the partial grant cap.

Please complete the Application Form and return it to the children’s services department to apply for the Home Child Care Enhancement Grant.

Please contact the Children’s Services office to access these forms.

The General Operating Grant is intended to support the costs of operating licensed child care programs in order to reduce wait times and fees for services, stabilize service levels, and where funds allow, improve access to high-quality affordable early learning and child care services for children and their families. General Operating Funding may be used for the following expenses:
  • Staff wages and benefits;
  • Lease and occupancy costs;
  • Utilities;
  • Administration;
  • Resources;
  • Nutrition;
  • Supplies; and
Please contact the children’s services department to see if your program is eligible for the General Operating Grant.

The Licensed Home Child Care Base Funding (LHCC base funding) is to support the provision of stable, predictable funding to assist agencies with forecasting, planning and actively recruiting more providers. Funding is to support increased compensation for providers and reduced fees or additional fee subsidies for parents.  

Licensed Home Child Care Agencies whose head office is located in the Counties of Prince Edward or Lennox and Addington can contact the children’s services department to see if your agency is eligible for the LHCC base funding.

Special Purpose Funding helps licensed child care service providers with one-time expenses needed to comply with licensing and health requirements, improve program viability, support business transformation and enhance quality.

There are four separate funding streams for Special Purpose Funding:

    • Repairs and Maintenance;
    • Transformation;
    • Play-based Materials and Equipment; and
    • Capacity Building.

To apply for Special Purpose Funding, service providers must complete a Special Purpose Funding Application. Each funding stream has a separate form with different requirements and guidelines.  Applications may be received throughout the year but no later than October 31st.

Please contact the Children’s Services office to access these forms

Special Needs Resourcing funding may be available to hire additional staff to support the inclusion of children with special needs in licensed child care. Enhanced Support Funding is available through Lennox and Addington Resources for Children for licensed child care programs located in Lennox and Addington and The HUB Child and Family Centre for licensed child care programs located in Prince Edward County.

Reach out to a Children's Services team member, we’re here to help.

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