Uncertainty over $10-a-day childcare program leaving local Saskatchewan daycare businesses struggling for support
In Saskatchewan, the economic impact of the delay in renewing the federal funding agreement for $10-a-day childcare is becoming increasingly apparent. This uncertainty is particularly affecting businesses that specialize in manufacturing daycare furniture, such as Kustom Kitties Canada, which operates out of Southey, Saskatchewan.
The provincial government's failure to sign the renewed funding agreement, unlike most other provinces, is causing instability and concern among businesses that rely on affordable childcare for their workforce. This uncertainty has led to a decline in business for Kustom Kitties Canada, with owner Quinn Nikoluk stating that what should have been a banner year has nosedived over the last two months, resulting in a 80% decline in business.
The lack of a confirmed funding deal also affects the accessibility and affordability of childcare options for working parents. This, in turn, hampers workforce participation and economic vibrancy, as affordable childcare is crucial for workers to engage fully in employment activities.
Saskatchewan has been slower in expanding regulated childcare spaces compared with other provinces, with fewer new spaces created between 2019 and 2024. This further stresses families and businesses that need reliable childcare. While Saskatchewan achieved the $10-a-day rate target in April, the absence of a signed agreement to secure long-term funding creates ongoing challenges for sustaining and growing childcare offerings.
The NDP Opposition is calling for assurances regarding the extension of the agreement, while the provincial government has stated that it is committed to signing an extension. The current agreement for $10-a-day childcare in Saskatchewan is set to expire next March.
In response to the situation, the childcare sector in Saskatchewan is closely monitoring its spending as a precaution. Some have suggested that the government could provide emergency funding for childcare centres on the verge of closing. MLA Joan Pratchler has proposed this as a potential solution to help stabilize the childcare sector during this period of uncertainty.
As the provincial government continues negotiations with the federal government, the economic repercussions of the delay in signing the funding agreement are being felt by businesses like Kustom Kitties Canada, highlighting the importance of a swift resolution to secure the future of affordable childcare in Saskatchewan.
The economic instability due to the delay in renewing the federal funding agreement for $10-a-day childcare has extended to the finance sector, with businesses like Kustom Kitties Canada reporting a significant decline in revenue. Furthermore, the absence of a secured funding deal may negatively impact the accessibility and affordability of childcare services, which are vital for business growth and overall economic health.
