Childcare Entrepreneurs Offer Solution to Meet Prime Minister’s Savings Mandate

A Canadian Coalition of Childcare Operators

Childcare is a sector where meaningful savings can be achieved without reducing access or quality.”

— Krystal Churcher, Chair of ACE

OTTAWA, ONTARIO, CANADA, July 10, 2025 /EINPresswire.com/ -- In response to the Prime Minister’s recent directive for federal ministries to identify significant operational savings, the Association of Childcare Entrepreneurs (ACE) is calling on the federal government to look at Canada’s childcare funding model as a clear and actionable opportunity.

“Childcare is a sector where meaningful

savings can be achieved without reducing access or quality,” said Krystal Churcher, Chair of the Association of Alberta Childcare Entrepreneurs. “In fact, we believe smarter program design could improve outcomes for families while also helping the federal government meet its cost-reduction targets.”

Currently, both provincial and federal governments dedicate substantial resources to administering the Canada-Wide Early Learning and Child Care (CWELCC) program. Administrative costs can consume up to 10% of provincial allocations and as much as 18% of federal funding—amounting to over $5 billion from the national childcare budget. In parallel, childcare operators report rising administrative burdens, with some members estimating monthly compliance costs of $28 per child.

“The system is expensive to run—on both sides,” said Churcher. “And those dollars aren’t going to families or frontline care. They’re going to infrastructure that’s grown far beyond what’s needed.”

As a practical alternative, ACE is encouraging policymakers to consider a Direct Funding model that supports families directly. Under this approach, the federal government would continue to provide funding to provinces, which would then issue monthly payments or vouchers to families to use with licensed childcare providers. The model reduces the need for costly claims systems, complex audit procedures, and federal oversight structures—while still maintaining quality standards and equity goals.

“This isn’t about cutting services—it’s about delivering them more efficiently,” said Churcher. “The Direct Funding model is simpler to administer, easier for families to navigate, and more accountable in terms of outcomes.”

ACE has published a policy blog outlining how the childcare sector could lead the way in meeting the Prime Minister’s phased savings targets of 7.5%, 10%, and 15%. The full post is available here.

“As the federal government considers where and how to make operational adjustments, we urge the Minister of Families to look to childcare not only as a place where savings are possible—but as a sector ready to demonstrate leadership in program reform.”

About ACE
The Association of Canadian Early Learning Programs (ACE) is a non-profit coalition of licensed childcare providers — including home-based, nonprofit, and private centres — advocating for sustainable funding, parental choice, and high-quality, inclusive care. Grounded in frontline experience, ACE works collaboratively with governments and stakeholders to ensure childcare policies are practical, equitable, and responsive to the diverse needs of families and operators across Canada.