Your Guide to Alberta Child Care Subsidy
Your Guide to Alberta Child Care Subsidy
Child Care Subsidy Changes in 2025
Alberta has introduced a new flat-fee child care subsidy model starting April 1, 2025, making early learning more affordable for families. Under this system, parents with children in licensed daycare will pay a maximum of $15 per day, totalling $326.25 monthly for full-time care. Families using part-time care (50–99 hours per month) will pay a fixed $230 monthly. These changes replace the previous income-based subsidy, providing predictable costs and making child care more accessible for all families. However, out-of-school care subsidies (Grades 1-6) remain unchanged, meaning families with school-aged children must still apply under the old income-based system.
These updates align with Alberta’s long-term goal of achieving $ 10 per day of child care by 2026 in partnership with the federal government. By reducing costs and streamlining the subsidy process, the province aims to ease the financial burden on families while ensuring high-quality care remains available. Although some lower-income families who previously received more than $15/day in subsidies may see a slight increase in costs, the new model benefits a broader range of households, particularly middle-income families previously ineligible for full subsidies. For more details, visit the Alberta Child Care Subsidy page.
Subsidy Types and Rates
The amount of child care subsidy a family can receive is based on three main factors:
- The household’s total annual income
- The type of child care program chosen (such as full-time, part-time, or extended care)
- The number of hours the child is enrolled in the program each month
These variables help determine the level of financial assistance a family may qualify for to offset childcare costs.
Under the federal-provincial child care agreement, parents with children from birth to kindergarten age can benefit from reduced fees through:
- Expanded subsidy eligibility with new income thresholds and rates.
- Affordability grants are provided directly to childcare operators.
Families earning less than $90,000 gross annually, with children in kindergarten to Grade 6 attending licensed programs outside regular school hours, are eligible for a subsidy.
- Families with an annual income under $180,000 and children enrolled in a licensed preschool program may apply for a subsidy of $125 per month.
- Families can only receive one type of subsidy, opting for the highest eligible rate.
This subsidy assists families requiring child care beyond the usual hours of 6 am to 6 pm or on weekends. It offers an additional $100 per month per child if:
- The child requires four or more hours of extended care in a month.
- The licensed program is approved to offer extended hours of care.
Subsidy rates are increased in July and August to assist with the cost of full-day care during summer.
Old vs. New Affordability Fund: A Clear Comparison
| Feature | Previous Subsidy System | 2025 Flat-Fee Model |
| Eligibility | Based on household income | All families with children in licensed care |
| Full-time rate | Varied based on income, up to $644/month | Fixed at $326.25/month ($15/day) |
Part-time rate | Pro-rated based on income | Fixed at $230/month |
| Out-of-school care | Subsidized for eligible families | Remains unchanged |
| Affordability goal | Varied, with subsidies decreasing as income rose | Moving toward universal $10/day care by 2026 |
This shift makes child care costs more predictable, eliminating the complexity of income-based calculations.
Who is Eligible?
Under the new program, eligibility is more straightforward than before. Families can access the flat-rate child care fees if they meet the following criteria:
Citizenship & Reason
Child’s Age & Program
Annual Family Income
Frequently Asked Questions
No. Under the new model, the flat-fee subsidy is automatically applied to eligible licensed providers. However, families using out-of-school care must still apply for subsidy support through the Alberta government.
Out-of-school care programs remain under the previous subsidy system, which provides support based on income eligibility. If your child is in before- and after-school care, you must continue to apply for assistance through the government portal.
Families who previously received a higher subsidy than $15/day may see an increase in out-of-pocket costs. However, for most families, the new system offers greater affordability and simplicity.
Yes, low-income families may qualify for additional support under separate government programs. Contact Alberta Child Care Subsidy Services for more details.
How to Apply?
