The AB govt announced a change to child care. Under the current system, parents pay out-of-pocket based on hours & type of childcare. Parents also receive a subsidy that is income-tested. The change eliminates the subsidy and standardizes the out-of-pocket amount www.alberta.ca/release.cfm?... - ThreadSky

gillianpetit.bsky.social • 32 days ago

The AB govt announced a change to child care. Under the current system, parents pay out-of-pocket based on hours & type of childcare. Parents also receive a subsidy that is income-tested. The change eliminates the subsidy and standardizes the out-of-pocket amount https://www.alberta.ca/release.cfm?xID=927102F1AB330-03B4-C316-F50C3A9FDE986B5B

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gillianpetit.bsky.social•32 days ago

At first, I was excited. In the spirit of complete transparency, I have 1 kid (3 years old) in a full-time licensed day care (100+ hours/month). I am not eligible for the subsidy and I pay $474/month. A drop to $326.25/month means I save $147.75/month in child care.

gillianpetit.bsky.social•32 days ago

What about others? Suppose a family has a 3 year-old kid in the same full-time licensed daycare as me and they ARE eligible for the subsidy (income<$119,000/year). Currently they pay $474/month and receive $266/month. After the change, they will pay $326.25/month. They are worse off by $118.25/month

alexrunsfar.bsky.social•32 days ago

Is that how it is though? I don't get how you're finding the worse off number. This is what we're currently paying. My understanding is the Feb fee will just be the flat $326. The subsidy will be gone. And the grant will be whatever it is. Plus the provider will be able to add extra expenses.

gillianpetit.bsky.social•32 days ago

So right now your paying $593 out of pocket plus the $266 subsidy. After the change, you’ll pay $326.25 and no subsidy. You’ll be better off by 0.75. That’s because your child is in a day home and not a day care. The grant is currently lower for day homes than day care. That’s actually a good point…

gillianpetit.bsky.social•32 days ago

It will bring day care and day home grants to the same level. But it will still have a larger benefit for parents with high income (not eligible for the subsidy) regardless of the child care centre. It will have a negative effect on parents with children at daycares who are eligible for the maximum

gillianpetit.bsky.social•32 days ago

subsidy amount. And it will be almost a wash for parents with children at dayhomes who are eligible for the max subsidy.

gillianpetit.bsky.social•32 days ago

Another scenario: same daycare, full time, but child is 18 months old and family income is less than $119,000. That family currently pays $217/month and receives a $266/month subsidy. After the change, they will pay $325.26/month and get no subsidy. Their loss is $345.25/month.

gillianpetit.bsky.social•32 days ago

Has the UCP done their homework on the distributional impacts? It seems at first blush that higher income households with older-ish (2-4 years old) will be better off while lower income households with younger children (0 - 19 months) will be worse off. #abpoli #Alberta

gillianpetit.bsky.social•32 days ago

Yes I'm busting open my simulator now. I'll get to the bottom of this best I can. Stay tuned - I hope to have some better numbers by tomorrow!! @lindsaytedds.bsky.social

lindsaytedds.bsky.social•32 days ago

Ha. I am sitting outside P’s school waiting to pick up a gaggle for a sleepover!

tammyschirle.bsky.social•32 days ago

Going to throw in my ‘yah but’… yes, distribution across households is important, but I also worry about within hhld negotiations. If mom’s wage offers are modest, will dad support career development or say ‘it just doesn’t add up, daycare is too much $$$’ etc.

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