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Ontario’s Early Years and Child Care Annual Report 2025 Provincial Trends and Local Implications – Issue Report

Report To:                           Manitoulin-Sudbury District Services Board

From:                                       Lori Clark, Director of Integrated Human Services
                                                      Amy Winnington-Ingram, Integrated Human Services Manager

Date:                                         March 19, 2026

Re:                                              Ontario’s Early Years and Child Care Annual Report 2025 Provincial Trends and Local Implications – Issue Report

Strategic Plan Goal:    2. Transform How We Work
Objective:                            2.1. Leverage data and analytics to inform decisions, support advocacy and improve service design

Purpose

To provide the Board with an overview of Ontario’s Early Years and Child Care Annual Report 2025, highlight key provincial trends and measures, and outline local implications for the Manitoulin-Sudbury District Services Board (DSB) in its role as Service System Manager (SSM), including licensed capacity, Canada Wide Early Learning and Child Care (CWELCC) implementation, EarlyON participation, and early years developmental outcomes.

Background

Ontario publishes an annual Early Years and Child Care report to support transparency, track system trends, and inform service planning at both the provincial and local levels.

The 2025 Annual Report reflects data collected primarily between April 2024 and March 2025 and fulfills Ontario’s public reporting obligations under federal-provincial early learning and child care agreements, including the CWELCC Agreement.

CWELCC continues to advance system transformation across five priority areas: affordability, access, quality, inclusion, and data/reporting.

Key provincial milestones in 2024–25 included:

  • Virtual consultations in April 2024 and a province-wide parent/guardian survey in June 2024 with nearly 11,000 responses
  • A CWELCC Program Review with the federal government in June 2024
  • The release of the Cost-Based Funding Guideline in August 2024
  • Transition to cost-based funding effective January 1, 2025
  • Introduction of a $22/day parent fee cap for children under age six in CWELCC-enrolled programs effective January 1, 2025

The Annual Report provides the provincial context within which DSB monitors local system performance, service stability, and access pressures.

CWELCC Enrolment (Ages 0–5)

As of March 31, 2025, in Ontario 5,556 licensed child care sites, 92%, were enrolled in CWELCC and 328,610 licensed spaces,92%, for children aged 0–5 were enrolled.

The DSB maintains 100% CWELCC enrolment among eligible licensed spaces, exceeding the provincial average and ensuring full participation in the affordability framework for local families.

Licensed Child Care Growth (Ages 0–12)

Between March 31, 2024, and March 31, 2025 in Ontario:

  • Licensed centres increased 2.6% (5,836 to 5,989)
  • Licensed spaces increased by 16,070 (516,455 to 532,525)
  • Growth occurred across most age groups (infant, toddler, preschool, kindergarten, school-age), with a slight decrease in family age grouping spaces

While provincial licensed capacity continues to increase, Ontario notes that operational capacity may differ from licensed capacity where workforce shortages exist. This distinction is particularly relevant in northern and rural service system areas such as the Manitoulin-Sudbury DSB service area, where staffing availability directly affects space utilization.

DSB licensed centre-based capacity totals 919 spaces, consisting of:

  • 551 spaces for children ages 0–5
  • 352 spaces for children ages 6–12

Licensed home child care currently reflects 4 homes open, noting that two homes within the DSB geographic area are now funded by the District of Nipissing Social Services Administration Board effective January 2026.

Compared to last year’s Board-reported total of 897 licensed centre spaces, this represents a net increase of 22 spaces (+2.45%). Provincially, licensed centre spaces increased by approximately 3.11% over the same period.

DSB has experienced 69% growth in licensed centre-based capacity since 2014–15, compared to 47% provincially over that period, demonstrating sustained system expansion within a northern and rural context.

As in prior years, licensed capacity does not always equate to operational capacity. Ongoing monitoring of staffing pressures, room closures, and reduced group sizes remains a core oversight function.

French-Language and Bilingual Child Care (Ages 0–12)

As of March 31, 2025 in Ontario 39,007 licensed spaces provide services in French and 8,152 licensed spaces provide bilingual services.

The DSB maintains a significantly higher proportion of French-language spaces (29%) relative to the provincial average of approximately 7%. This reflects local linguistic demographics and long-standing system planning priorities. Sustaining French-language service capacity remains an ongoing consideration in local growth planning.

Licensed Child Care Capacity

Directed Growth and Access Planning

DSB’s Directed Growth Plan outlines a targeted approach to expansion that considers rural realities, workforce capacity, and long-term viability.

Key planning indicators include:

  • Between 2024 and 2026, the district will deliver 90 new licensed spaces
  • Total spaces created since 2022 will reach 169
  • Projected access rate improvement from 28.6% to 37.8% by the end of 2026
  • The projected access rate exceeds the provincial target of 37%

Confirmed reallocations and expansions account for 83 of the 90 planned spaces, with the remaining growth through licensed home child care. The plan emphasizes continued monitoring of licensed versus operational capacity.

Provincially, CWELCC implementation includes prioritization of directed growth to increase access in communities with demonstrated need, aligning with DSB’s planning approach.

CWELCC Implementation — Affordability and Funding Model

Effective January 1, 2025, Ontario implemented the transition to cost-based funding, replacing revenue replacement and a $22/day parent fee cap for children under age six in CWELCC-enrolled programs.

Prior to the cap, provincial average full-day fees ranged from $36.57/day (infants) to $26.03/day (kindergarten) in centre based programs and Home child care agencies: $23.52/day (under 2) to $19.90/day (ages 4–5).

Locally, the Manitoulin-Sudbury DSB’s approved base daily rates for full-day centre-based care remain below the provincial cap, our rates are $17.55 for infants, $15.00 for toddlers and $12.50 for preschool children.

These rates reinforce affordability for families while operating within the cost-based funding framework.

The transition to cost-based funding represents a structural funding shift and requires continued monitoring of:

  • Operator sustainability
  • Enrolment stability
  • Workforce capacity
  • Service continuity in smaller rural programs

Provincial EarlyON Child and Family Centres

  • 776 main EarlyON locations
  • 533 mobile/satellite locations
  • 83 virtual EarlyON service supports

Manitoulin-Sudbury DSB EarlyON Child and Family Centres

  • 4 main EarlyON locations
  • 10 mobile/satellite locations
  • Virtual service support offered by all providers, as needed

Given the District’s large geographic footprint and rural composition, service delivery relies heavily on mobile, satellite and flexible supports to ensure community access.

Early Years Developmental Outcomes — Early Development Instrument

Ontario reported that 31.1% of kindergarten-aged children were vulnerable in one or more developmental domains (2023 data), an increase from 29.6% in 2018.

Locally, DSB’s Cycle 6 results (2022/23) indicate:

  • 27.3% vulnerability in at least one domain
  • A decrease from 28.1% in Cycle 5
  • A critical decrease in vulnerability in the Physical Health and Well-Being domain

DSB’s vulnerability rate remains below the provincial comparator.

Cycle 7 provincial EDI data collection is scheduled for the 2025–26 school year. Updated local results will be reported once available.

Professional Development and Workforce Considerations

Professional development continues to be prioritized to support recruitment, retention, and program quality. Workforce pressures remain a key risk factor affecting operational capacity, service stability, and growth implementation assumptions.

Considerations and Implications for DSB

Based on provincial trends and local data, staff are prioritizing the following:

  • Affordability and Communications: Maintain consistent messaging regarding CWELCC eligibility, fee rules, and the $22/day cap
  • Service Viability and Operational Capacity: Continue monitoring the gap between licensed and operational capacity, particularly in rural communities impacted by staffing constraints.
  • Access and Growth: Continue implementing directed growth initiatives and monitoring progress toward projected access improvements.
  • Data and Reporting: Use provincial reporting and local data monitoring to inform evidence-based decision-making and long-term system planning.

Conclusion

Ontario’s Early Years and Child Care Annual Report 2025 provides an annual snapshot of provincial system performance and CWELCC implementation.

DSB’s local data provides the operational lens required for effective rural service system management. Staff will continue to monitor provincial direction, local access pressures, workforce stability, and key system indicators including licensed capacity, EarlyON participation, and developmental outcomes and report back to the Board as required.

Recommendation

That the Board approve the report as presented.