CHAPTER 4: EARLY CHILDHOOD DEVELOPMENT, LEARNING AND CHILD CARE
According to the Mission Statement of Canada's Centre of Excellence for Early Childhood Development:
Between the ages of 0 and 5, children experience a phase of accelerated growth. The education, care and attention they receive during this crucial period of development have a decisive effect on their future.
The best scientific research suggests that providing young children with quality learning opportunities and care will enhance their physical, language and motor skills development, along with their social, emotional and cognitive development.
To help strengthen early childhood development, the Government of Canada provides families with financial support and tax measures to recognize the costs of early childhood learning and care. The government also provides early learning and child care programs and services for First Nations and other Aboriginal Children, for families of Canadian Forces members and for adult immigrants with young children.
The programs described in this chapter respond to the diverse and changing needs of families by providing opportunities for children to interact and play in environments that foster healthy early childhood development.
Many programs described in other chapters of this section provide quality early learning and care for children. Examples include the Community Action Program for Children (Chapter 3) and a number of the dedicated services for First Nations and other Aboriginal children and families (Chapter 6).
Additional information about the Government of Canada's investments in early learning opportunities and child care for children is available in Section II: Early Learning and Child Care Activities and Expenditures, Government of Canada Report 2003–2004.
ACTIVITIES AND EXPENDITURES
Canada Revenue Agency
Canada Child Tax Benefit Supplement
The Canada Child Tax Benefit (CCTB) is a tax-free monthly payment made to eligible low- and middle-income families to help them with the cost of raising children under age 18. Families receiving the CCTB also receive a supplement if they are providing care for children under the age of seven at home. The amount of this CCTB supplement is reduced according to child care expenses that are claimed as an income tax deduction. This report focuses only on the expenditure related to the CCTB supplement and does not track the government's expenditure on the full CCTB.
What's New: Because it is indexed to inflation, the CCTB supplement increased in July 2003 to $232 per year for each child under the age of seven. The supplement is reduced by 25% of any amount a recipient (or a recipient's spouse or common-law partner) claims for child care expenses.
Additional information about the CCTB supplement, including a Child and Family Benefits Online Calculator, is available online at www.cra-arc.gc.ca/benefits/childbenefit-e.html.
Expenditure: The expenditure for the CCTB supplement totalled $338,136,267 for the July 2003 to June 2004 program year. This amount represents supplementary benefits for children under seven years of age. The expenditure helped support 2 446 970 children in 1 754 902 families.
Note: In addition to the CCTB base benefit (which may include the CCTB supplement), CCTB entitlements may also include the National Child Benefit Supplement, a monthly benefit for low-income families with children. Detailed information on the Government of Canada's contributions through the CCTB and the National Child Benefit Supplement are published in the National Child Benefit Progress Report, available online at www.nationalchildbenefit.ca.
Finally, CCTB entitlements may also include the Child Disability Benefit (CDB), a monthly benefit that provides financial assistance for eligible families caring for children with severe and prolonged mental or physical impairments. In March 2004, the Canada Revenue Agency started paying the CDB, with payments retroactive to July 2003. The CDB is a $50-million-per-year investment by the Government of Canada and provides up to $1,600 annually (indexed to inflation) for a child qualifying for the disability tax credit.
Child Care Expense Deduction
The Child Care Expense Deduction (CCED) is an income tax measure that recognizes child care expenses are a necessary cost many parents incur to enable them to be employed, carry on a business or pursue education. It defines child care expenses as the amounts a parent or another supporting person pays to the following for the care of an eligible child:
- individuals providing child care services;
- a day nursery school or day-care centre;
- a day camp or day sports school;
- a boarding school or camp (including a sports school where lodging is involved); and
- an educational institution for the purpose of providing child care services.
The CCED provides a deduction for income tax purposes from a parent's or supporting person's income of up to $7,000 for each child under age seven, $4,000 for each child age seven to 16, and $10,000 for each child eligible for the disability tax credit.
Expenditure: According to preliminary estimates from the Canada Revenue Agency, in the 2003 tax year 1 097 950 individual (Canadian) tax filers were allowed income deductions for child care expenses. This represents deductions for children of all ages, since there is no data available for children by age. In the same year, the total child care claims by parents or supporting persons under this income tax measure are estimated to be $2,951,198,000. Finance Canada projected the tax expenditure on this income tax measure to be $545 million.
Citizenship and Immigration Canada
Language Instruction for Newcomers to Canada
Language Instruction for Newcomers to Canada (LINC) provides language training so that newcomers may become participating members of Canadian society as soon as possible. Fifty thousand adult immigrants attended LINC classes at 300 sites during 2003–2004. Additional information about LINC is available online at www.cic.gc.ca/english/newcomer/linc-1e.html.
The program has a childminding component, which helps parents attend LINC classes by covering the cost of either licensed day-care or on-site child care. The on-site LINC childminding programs benefit the children as well, because they have an opportunity to learn some English or French in a safe environment, with their parents nearby.
Organizations that offer the on-site childminding services must meet national LINC childminding standards.
What's New: During 2003–2004, Citizenship and Immigration Canada worked closely with Childminding Monitoring, Advisory and Support (CMAS) to make sure that the childminding service providers at LINC sites thoroughly understand and comply with all national LINC childminding requirements.
In particular, CMAS helped service providers learn about, and implement, appropriate policies and procedures with regard to such matters as fire safety, sanitary practices, group size and ratios. This work ensures the standard of care offered at LINC sites protects the health and safety of children while their parents attend classes.
Expenditure: The 2003–2004 expenditure for the LINC program, including adult language training, child care and transportation, was $92,620,700.
National Defence
Military Family Services Program
As part of the Military Family Services Program, there are 42 Canadian/Military Family Resource Centres (C/MFRCs) at Canadian Forces bases, wings and stations, which provide a wide variety of programs for families, including information and referral, services for children and youth, and prevention and intervention services, including emergency child care. These programs and services are used by Canadian Forces families in Canada, Europe, the United Kingdom and the United States.
According to the program's records for 2003–2004:
- 18070 children and 13 417 adults attended 2 179 parent and tot groups;
- 38180 children and 8 622 adults took part in 3 876 preschool play groups; and
- an estimated 70 507 children in total attended activities organized by the C/MFRC. (Note: the number of children does not indicate individual participation–the same child can participate in a number of activities and be counted each time.)
What's New: After consulting with Canadian Forces families and experts in the field of child development, program leaders decided during 2003–2004 to switch to a community development model for the design and delivery of services for children and families. This is a significant change because, previously, programs offered through the C/MFRCs were prescriptive and were required to be the same in every community.
The new approach is outlined in Parameters for Practice, a guidance document that gives families and communities a real influence on local priorities and local services. The C/MFRCs will have a year to adapt to the new model, and will implement community-specific programs and services on April 1, 2005.
Additional information about Parameters for Practice, including descriptions of objectives for such programs as Parent/Caregiver Education and Emergency Respite Child Care, is available at www.cfpsa.com/en/psp/DMFS/index.asp under the "Resources" section.
Note: More information about the Military Family Services Program is available in Section II: Early Learning and Child Care Activities and Expenditures, Government of Canada Report 2003–2004.
Expenditure: The estimated expenditure in 2003–2004 on services under the Military Family Services Program for children age zero to six and their families was $4,000,000.
ACTIVITIES AND EXPENDITURES TABLES
Table 4.1: Income Tax Measures
Canada Revenue Agency
| Expenditures | Claims by individual tax filers | |
| 2000 | $595,000,000 | 1 072 780 claims |
| 2001 | $530,000,000 | 1 080 210 claims |
| 2002 | $540,000,000 | 1 109 040 claims |
| 2003 | $545,000,000 | 1 097 950 claims |
| The expenditure amounts are the tax expenditures (or foregone taxes) related to the deduction, and not the total child care expense claims. Estimates of federal tax expenditures are produced annually by the Department of Finance, and represent expenditures over a calendar year. See www.fin.gc.ca/toce/2004/taxexp04_e.html. Tax expenditure figures and the number of claims are for children of all ages. Data is not available for children under age 6. These figures do not include operating expenditures to administer the deduction. The number of claims reported is the total claims on which child care expenses were allowed as deductions for tax purposes. Data about program expenditures have been revised since the latest report to show the tax expenditures (or foregone taxes) related to the deduction. Last year's report indicated the total child care expense claims. 2002: Expenditure figures are projections. Data on the number of claims have been revised since last year's report, from preliminary information to actual figures. 2003: Figures for expenditures and the number of claims are preliminary. |
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Table 4.2: Programs Providing Direct Support
Canada Revenue Agency
| Expenditures | Sites | Children under 6 and their families | |
| 2000–2001 | $365,899,543 | Not applicable | 2 624 151 children – 1 858 234 families |
| 2001–2002 | $353,723,791 | Not applicable | 2 564 117 children – 1 823 654 families |
| 2002–2003 | $341,764,682 | Not applicable | 2 487 363 children – 1 781 903 families |
| 2003–2004 | $338,136,267 | Not applicable | 2 446 970 children – 1 754 902 families |
| All expenses above are based on benefit years, July 1 to June 30 of each year. Expenditure figures and the number of claims are for children under 7 years of age. Data about program expenditures and program availability have been revised since the latest report, from estimates of the number of claims for children under 6 to the actual number of claims for children under 7 years of age. |
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Citizenship and Immigration Canada
| Expenditures | Sites | Children under 6 and their families | |
| 2000–2001 | $93,543,000 | 300 | 50 000 adult immigrants |
| 2001–2002 | $90,717,900 | 300 | 50 000 adult immigrants |
| 2002–2003 | $91,781,000 | 300 | 50 000 adult immigrants |
| 2003–2004 | $92,620,700 | 300 | 50 000 adult immigrants |
| Expenditures are allocations and include: grants and contributions only. All amounts above include adult language training, child care and transportation. |
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National Defence
| Expenditures | Sites | Children under 6 and their families | |
| 2000–2001 | $4,000,000 (estimate) |
15 000 services in 45 sites (estimates) | 8 000 children; 35 000 families |
| 2001–2002 | $4,000,000 (estimate) |
15 000 services in 45 sites (estimates) | 8 000 children; 35 000 families |
| 2002–2003 | $4,000,000 (estimate) |
Not available | Not available |
| 2003–2004 | $4,000,000 (estimate) |
42 sites | 70 507 children (estimate) |
| Expenditures above include: grants and contributions; operations and management costs; and salaries and are estimates for children age 0 to 6 years. 2000–2001 and 2001–2002: The number of sites includes universal mandated services (available at every site) and site-specific services based on local need and supported by the local Commanding Officer and/or other sources of funding. It also indicates the total frequency of programs and not the number of programs offered (e.g., the same program might be offered several times throughout the year). Includes 36 sites in Canada, plus two Canadian/Military Family Resource Centres in the United States and seven in Europe. 2003–2004: The number of children does not indicate individual participation–the same child can participate in a number of activities and be counted each time. |
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