Your Guide to Alberta Child Care Subsidy

Your Guide to Alberta Child Care Subsidy

Child Care Subsidy 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:

  1. The household’s total annual income
  2. The type of child care program chosen (such as full-time, part-time, or extended care)
  3. 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:

  1. Expanded subsidy eligibility with new income thresholds and rates.
  2. 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 Subsidy Model: A Clear Comparison

To help you understand how this change affects your family, we’ve outlined the differences between the old and new models:
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

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

You qualify if you and/or your spouse/partner or the child receiving care are Canadian citizens or permanent residents, you are a resident of Alberta and are currently working, attending school, looking for work, or have special needs.

Child’s Age & Program

You’re eligible if your children are 12 or younger, are not yet attending Grade 7, and have a secured spot in a licensed daycare (such as Clever Daycare) or out-of-school care facility or an approved family day home or group family child care program.

Annual Family Income

Under the new flat-fee model, income level does not impact eligibility for full-time and part-time child care. The only families still subject to income-based eligibility are those applying for subsidies for out-of-school care (Grades 1-6), as that program remains unchanged.

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.

Subsidy rates are increased in July and August to assist with the cost of full-day care during summer.

Contact Clever Daycare for personalized assistance.

How to Apply?

To apply for out-of-school care subsidies, follow these steps: Visit the Alberta government website and navigate to the official child care subsidy page. Check eligibility requirements to ensure that your child’s program qualifies.
Child Care Subsidy Application
apply for child care subsidy
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