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Introduction

Regulated family child care is a relatively recent addition to the Early Learning and Child Care (ELCC) landscape in Newfoundland and Labrador. Its journey began under unique circumstances, faced several challenges in its early years, and has since experienced significant growth in spaces and provider support following the introduction of the Canada-wide Early Learning and Child Care (CWELCC) agreements. Newfoundland and Labrador is unique with a single family child care agency managing all providers across the province. Providers are well-compensated, have access to medical benefits and are compensated for statutory holidays, vacation days, and approved professional development days.¹

An unusual beginning to family child care in Newfoundland and Labrador

 Family and Child Care Connections (formerly the CUPW family resource centres) was established by the Canadian Union of Postal Workers (CUPW) in the fall of 1996. This initiative followed CUPW’s 1995 achievement of full control over a child care fund, which had been initially secured through collective bargaining in 1991 as a joint venture between the union and Canada Post. The fund was designed to support child care projects and services, provide information and referrals, and facilitate needs assessments and research.

In spring 1996, CUPW conducted a comprehensive child care needs assessment of its members in the St. John’s, Newfoundland and Labrador local. The findings highlighted significant gaps in child care services:

• No regulated family child care or licensed infant care
• Regulations prohibiting centre operations beyond 8:00 p.m.
• Over 75% of centre-based care operated for profit
• Limited access to non-profit programs, often restricted to specific populations
• No operational funding, high parent costs, and limited fee subsidies

The needs assessment revealed that existing child care programs were unable to meet members’ needs. Given the restrictions on the existing non-profit centres, there were no suitable non-profit child care organizations with whom to partner. As a result, in consultation with the provincial government, CUPW established and funded an agency that included a family resource centre and a family child care component, which would provide services to CUPW members as well as the broader community. 

The agency’s mandate was to recruit, train, monitor, and support family child care providers willing to offer part-time, evening, and flexible hours of care. The family resource centre complemented this effort by providing playgroups, a toy and equipment lending library and parent resources. CUPW also provided fee assistance to any of its members using an affiliated family home caregiver, or a non-profit licensed child care centre. The initial agency coordinator and home visitor developed policies and “standards” for the family child care homes internally and informed the provincial government’s Early Childhood Services Committee about the work.  

CUPW had entered into this project with the expectation that at some future date the provincial government would implement regulated family child care and would then contribute to the operating costs of the program.

Changes to government regulation allow for regulated family child care

In 1998, the provincial government allocated funds from Newfoundland and Labrador’s share of the National Child Benefit² to enhance child care provision. Key enhancements included:

• Establishing regulated family child care 
• Introducing licensed infant care
• Certification of child care staff
• Providing program funding to support the development of child care services 
• Enhancing child care subsidies

The Child Care Services Act and accompanying regulations, proclaimed in 1999, laid the legal foundation for these changes. The regulations for family child care drew on the model first developed by CUPW. 

The government determined that family child care would be delivered through agencies connected to non-profit family resource centres or similar child care structures. By 2000, two pilot family child care agencies were established: 

• A CAPC-funded Family Resource Centre
• CUPW Family Resource Centre³ in St. John’s in Corner Brook

Caregivers were encouraged to affiliate with these agencies but could opt for individual licensing if they lived outside the agencies’ geographic areas (Metro St. John’s and Corner Brook and its surrounding areas). Providers in Corner Brook also had the option to become individually licensed if they preferred. Providers set their own rates and collected fees from parents.

During the pilot phase, growth was limited as agencies were not permitted to advertise or promote their programs. At its inception, Family and Child Care Connections began with 10 homes.

An 2002 evaluation of the family child care model showed strong support for the model. The two agencies received their first licenses in 2003.

Uneven support for family child care providers prior to CWELCC

Before the introduction of the Canada-wide Early Learning and Child Care Agreement (CWELCC), support and funding for family child care providers varied significantly. The Government of Newfoundland and Labrador allocated funding to cover agency functions it deemed essential for the effective delivery of family child care. However, other components, such as resource centre functions and portions of salary costs in St. John’s, were supported solely by CUPW. The early years saw many growing pains for family child care, which strived for recognition within a community of centre-based care. 

Early initiatives in family child care

Start-Up Grants in the amount of $1,500 became available in April 2006.  This amount was increased to $2,500 in 2009

ECE Trainee Bursary: Introduced in 2006 and revised in 2015, the bursary is available for individuals working in a licensed centre or approved home who are taking online ECE courses from a recognized college or university to upgrade their Trainee Certification to Level I. The bursary amount is $250 per completed ECE certificate course required for Level I certification.⁴

Inclusion support: Family child care providers were eligible for funds for additional staffing and materials when enrolling children with additional support needs.

Increases in the 2011 provincial budget: The 2011 budget announced a two-year pilot project, the Family Child Care Initiative, which began in April 2011 to develop more family child care spaces. The initiative included:

• Increasing start-up grants for family child care from $2,500 to $5,000 for homes serving mixed age groups
• Providing infant stimulus grants of $7,500 for family child care homes operated exclusively for infants up to age two
• An ongoing stimulus grant of $200/month per space to infant family child care homes
• Access to the ELCC Supplement, for family child care providers with at least a Level I ECE certification. The supplement had been available to centre-based staff since 2001. However, the supplement was not made available to agency monitors until 2017

In the first year of the pilot, 29 new family child care homes were established, adding 159 new regulated family child care spaces. Between 2011 and 2017 Family and Child Care Connections grew from 45 approved homes to 100.

Changes in Oversight: In 2013, Family and Child Care Connections (FCCC) assumed responsibility for family child care in Corner Brook, in the Western Region, previously managed by the Corner Brook Family Resource Centre

Introduction of the Operating Grant Program for child care centres: In 2014, NL introduced the Operating Grant Program (OGP) for child care centres, but not for family child care homes. At the time, the OGP was a first step in making child care more affordable for families. Participating centres were required to lower their parent fees to the subsidy rates of the day. In exchange, the centres received an operating grant to compensate for lost revenue. Since family child care homes were not eligible, it became challenging for providers to remain competitive with centres receiving the OGP. 

Photo credit: Family and Child Care Connections

2017 legislative change and cuts to family child care

A number of regulatory changes were made when the new Child Care Act and Regulation  was implemented in 2017.

The legislation mandated that family child care providers, whether individually licensed or under agency supervision, obtain at least Trainee Level Certification.⁵

• Trainees are required to complete Level 1 of the Family Child Care Orientation Training Program and complete 10 hours of professional development annually
• Providers caring exclusively for infants needed at least ECE Level I certification (requiring a one-year ECE certificate) with an infant classification, and complete 30 hours of professional development every three years

Start-up funding was discontinued, leading to significant challenges in recruitment and retention. At the time of the cut to grants and new legislation, Family and Child Care Connections had 100 approved homes and by March 2020 they were down to 78. More providers had left the sector than were approved, and there was a loss of spaces, particularly for infants and toddlers, for whom family child care met the needs of many families. 

The Canada – Newfoundland and Labrador Early Learning and Child Care Agreement

On December 15, 2017, Newfoundland and Labrador signed the Canada – Newfoundland and Labrador Early Learning and Child Care Agreement. The background document to the agreement announced that the focus would be on the following key areas: 

• Enhancing the Operating Grant Program for child care centres and developing an operating grant component for Family Child Care to address affordability challenges in rural and remote community settings
• Enhancing the Child Care Capacity Initiative funding and introducing a family child care capacity component of the initiative to address unique accessibility challenges of early learning and child care in NL especially in rural and remote communities where a child care centre may not be viable

In spite of numerous exchanges between Family and Child Care Connections and the Department of Education, no progress was made in extending the funding to family child care. As a result Family and Child Care Connections had been losing not only approved providers, but also those in the process of applying to become approved.  

Additionally, the new regulations resulted in approved homes having to remove certain playground equipment that no longer met regulatory requirements, and only centres could access funding for outdoor play structures to meet new requirements. 

The Family Home Child Care Capacity Grant was finally introduced in October 2020. Up to $7,500 was available for renovations and start up costs for new providers to meet regulatory requirements. Unlike the previous start-up grant, there were a number of accountability measures built in to the grant process to ensure that providers receiving the public funds, committed to providing child care for a specified period.

The Canada-wide ELCC Agreement brings significant improvements to family child care

Newfoundland and Labrador signed the Canada-wide Early learning and Child Care Agreement on July 28, 2021. Shortly after the agreement was signed, the OGP was extended for the first time to family child care providers. In addition to having certificates of approval from Family and Child Care Connections, which confirms they meet all the regulatory requirements, family child care providers participating in the OGP, must sign a Service Agreement with the provincial government, which may cover multiple years, providing there are no serious regulatory compliance issues.  In addition to complying with the provincial legislation and policies, providers must:

• Participate in child care quality and inclusion initiatives through the Quality Enhancement and Inclusion programs
• Cap child care fees at the rates approved by the province. In 2022, child care fees were reduced to $15 per day, with a further reduction to $10 per day in 2023
• Participate in professional development activities when supported to do so
• Participate annually in community-based anti-bias training
• As of May 29, 2024, participate in the Early Learning Gateway, an online platform intended to manage waitlists and provide a portal for service providers

Compensation improvements for family child care providers

The compensation for family care child care providers has increased significantly since CWELCC and comes through multiple programs.Family child care providers receive ongoing funding through the Family Child Care Operating Grant and the Family Child Care Certification Initiative.  They are also eligible for the Newfoundland and Labrador medical benefits program for early childhood educators.⁶

Operating Grant Program family child care rates as of April 1, 2024

The OGP rates include amounts for provision of meals and snacks ($1/child per snack and $3/child per meal). Providers must provide meals and snacks unless they apply for and are approved for an exemption. Providers who offer care after 6:30 pm may receive additional funding for dinner or an evening snack. Providers caring for children in families experiencing food insecurity may apply for additional food allotments for those children. 

Providers may not charge:

• Annual registration fees or dismissal and re-registration fees. However, they may charge a one-time administration fee of $25 or less.
• To be on a wait list, or for:
• Field trips or other extra curricular activities
• Toys or program supplies
• Seasonal clothing
• Photos of regular or special events

All approved enrolled spaces are eligible for OGP funding. Unlike many self employed family child care providers in other parts of the country, providers in Newfoundland and Labrador are paid the OGP daily rates per space for:

• Twelve statutory holidays
• 10 days, which may be taken at the discretion of the provider (vacation days)
• Two approved closure days for professional development offered by the agency, the Association of Early Childhood Educators, Newfoundland and Labrador and/or approved by the Quality Program
• Approved bereavement leave of five days
• Approved involuntary closures, including sick days and snow days

Additional OGP payments

• Family child care providers in Labrador receive an additional 15 percent of the OGP amounts
• A rural and remote allowance, equal to 10 percent of the OGP funding is available to providers located outside the Census Metropolitan Area or Census Agglomerations 
• Providers receive an additional $30/day for every enrolled infant under two, on operational days (not applicable during voluntary closures)  

Family home certification incentive

As of October 1, 2024, the Family Home Certification Incentive replaced the ELCC Supplement, for all providers with an active AECENL certification and who participate in the Operating Grant Program. The amount of the incentive is a payment in addition to the operating grant, and is based on a provider’s level of ECE certification and days and hours of operation. 

Maximum annual Family Home Certification Initiative amounts

The maximum annual payment  is based on a 14-hour day and 261 days; most providers receive a prorated amount based on their actual hours of work. 

A provider with a trainee level certification working 10 hours/day and 261 days/year (excluding 12 statutory holidays, two closure days for professional learning and 10 discretionary closure days, which are eligible for OGP payment) would receive approximately $1,745 annual payment. A provider with Level 1 certification working a similar number of hours and days/year would receive approximately $17,450.

Medical benefits program

Newfoundland and Labrador introduced a voluntary medical benefits program for all providers participating in the OGP, who work at least 20 hours a week, and have satisfied a 90-day waiting period. The Family Child Care Operating Grant provides for 60 percent of the premium based on single coverage, or $56.12/month. If a provider wishes to have family coverage, they are responsible for the additional premium costs. 

Family child care compensation compared to centre-based educators

Compensation for family child care providers cannot be directly compared to the wages of centre based staff due to a number of factors:

• Family child care providers have to pay for materials and program supplies out of their income
• As self-employed individuals operating a home business, family child care providers have several tax deductions that are not applicable to centre-based employees
• Family child care providers typically work longer hours than centre-based educators
• Family child care providers do not incur transportation costs of traveling to and from their place of work
• The new Family Home Certification Incentive amounts are not stepped as are the amounts in the centre-based wage scale 

Even though there are a number of differences between centre-based wages and provider income, it would appear that at least some family child care providers make considerably more than their counterparts in centre-based care. 

Wages for centre-based staff 

Newfoundland and Labrador introduced a stepped wage grid for centre-based staff on April 1, 2023, retroactive to January 1, 2023. The wage grid replaced the ELCC Supplement, and, unlike the supplement, which was paid directly to staff, is integrated into the OGP payments. To be eligible for the wage grid educators must work in a centre that is participating in the Operating Grant Program and have an active ECE certification issued by AECENL. 

ECE wage grid annual salary 2023-2026

• The wage grid is based on 7.5 hours/day and 261 days/year. It does not apply to overtime or hours spent outside the centre. It is in place at the initial rates until 2026.
• Educators in Labrador, and francophones working in a francophone child care centre receive an additional $5,178/year 
• Administrators receive an annual bonus of between $4,894 and $5,178 depending on their Step on the wage grid

Compensation for family child care providers

Family child care providers receive ongoing funding through the Family Child Care Operating Grant and the Family Child Care Certification Initiative. As Example 2 shows, providers with Level I certification can earn over $90,000 annually before expenses.

Examples of income of family child care providers

Example 1: Family child care provider with Trainee Level certification, caring for five children in the infant to preschool range:

Example 2: Family child care provider with ECE Level I, caring for three infants:

Additional supports for family child care providers

Increase to the Family Child Care Capacity Initiative (FCCCI): On July 18, 2022, the maximum amount of the FCCCI was increased to $15,000, available for start-up costs for equipment and materials, and for renovations to meet the regulatory requirements.  Providers must make a commitment of five years from the date of licensing to participate in the Operating Grant Program, after which the grant is non-repayable. For providers participating for shorter periods of time, the amount of the grant is reduced on a pro-rated basis.

Providers in Labrador are eligible for a 15 percent increase on approved amounts, due to the high cost of renovations and materials.

Eligible expenses for the FCCCI include:

• Incorporation fees where applicable
• Play material and equipment, to a maximum of $750/child
• Professional fees
• Installation of fencing, egress windows and doors, fire suppression systems, other required renovations 

Inclusion Support Program: The program provides assistance to regulated child care services to ensure children with diagnosed or undiagnosed additional support needs can participate fully in a regular program. Family child care providers can access grant funding when recommended by a Regional Inclusion Consultant, which  can provide funding for additional caregivers and professional learning.⁸  

The Early Childhood Educator Recruitment and Retention Grant: Introduced in September, 2023, the grant, which replaced the ECE graduate bursary program, provides $2,500 to ECEs once they become certified as ECE Level I to Level IV with AECENL. They receive an additional $2,500 at two consecutive three-year certificate renewals, for a total of $7,500. This funding is available to both centre-based and family child care educators.

Quality Enhancement Grant: All child care services participating in the Operating Grant Program have access to Quality Enhancement Grants to support a range of quality enhancements in their service, in consultation with program consultants, to cover professional learning, program design enhancement, technology and materials and equipment, furniture and material upgrades.⁹

Growth in family child care since CWELCC

Agency expansion and support

During the implementation of CWELCC Family and Child Care Connections was asked for a wish list of  initiatives to strengthen and expand the provision of family child care. The agency requested and was approved for:

• Expansion of agency services province-wide
• Additional monitors to support expansion in the Central and Labrador 
• Funding for a promotional campaign

In 2022 Family and Child Care Connections hired a recruiter to conduct information sessions on family child care in different parts of the province, both online and in person. To date, more than 445 individuals have taken part in information sessions.

The recruiter also assists the providers in the lengthy application process for the Family Child Care Capacity Initiative funding and supports them through the various requirements and steps of the process.  To date, 43 application have been successfully completed and 59 are in process.

Two additional monitors were hired to work with providers in Central Eastern and Labrador regions

In 2021 the agency received 19 applications from providers wanting to join the agency.  In 2024, that number had risen to 108. 

In every province and territory, family child care providers are deemed to be non-profit, even though they operate as small businesses. This designation has helped Newfoundland and Labrador, as well as other jurisdictions, towards  meeting their non-profit expansion targets.

Consistent increase in spaces since CWELCC

The number of family child care spaces has not yet fully recouped the losses incurred during the period of funding cuts, but there has been a steady increase since the additional funding and supports were put in place through CWELCC. As the figure below shows, the increases and decreases in the number of spaces would appear to be directly related to changes in funding.

In 2004, regulated family child care accounted for approximately five percent of all child care spaces. By 2023, this figure had risen to approximately eight percent. Comparative data for 2024 are not yet available.

Number of family child care spaces in Newfoundland and Labrador 2004-2024

Source: Early Childhood Education and Care in Canada 2004-2023 editions. 2024 data provided by Family and Child Care Connections

As the figure shows, there was a steady increase in the number of spaces between the time family child care was first officially regulated and 2016, the year before the regulatory changes and funding cuts in 2017 took place, and which continued until the implementation of CWELCC. The supply has continued to increase since then. Of the 842 spaces in 2024, 493 are in the Metro St. John’s region, 173 in the Western Region and 176 in Central Region (including Labrador).

Conclusion

Much progress has been made but challenges still remain

With increased funding and greater recognition following the implementation of CWELCC, family childcare has become an integral and well-supported component of Newfoundland and Labrador’s childcare infrastructure. Despite ongoing challenges, particularly in remote areas, family childcare is meeting critical childcare needs in communities where establishing centre-based, nonprofit, or public childcare facilities is impractical, at least in the short term. The last two years have seen several positive improvements to family child care:

Success of Family and Child Care Connections: The agency has grown from serving the greater St. John’s Metro area to reaching Corner Brook and the Western Region, and later expanding into the more remote areas of the Central Region and Labrador. Newfoundland and Labrador stands out as the only Canadian jurisdiction with a single agency supporting providers across the entire province. The agency has successfully advocated for, and secured, the funding and supports needed to make family child care a viable career for providers and to offer regulated child care for families in communities where center-based care is not yet feasible.

Support in Rural Areas: The expanded mandate of the Family and Child Care Connections province-wide has enabled the agency to develop family child care in the Central East and Labrador regions for the first time.  

Support for the Operating Grant Program (OGP): Almost 100 percent of family child care providers are participating in the OGP, enabling parents to pay a maximum of $10/day for a full time child care space.

Provider compensation: The average annual contract for family child care providers is approximately $80,000. In addition, providers are eligible for paid vacation, professional development days closures, approved sick leave and participation in the recently announced ELCC medical benefits plan.

Reduced Turnover: The turnover rate among providers has been reduced by half, prior to the implementation of CWELCC.

Provider Education: Seventy percent of family childcare providers have attained Level I or II ECE certification or are currently pursuing their education.

Extended Hours Pilot: A new family child care initiative is being piloted to accommodate the schedules of healthcare workers. Providers operating under this model, will offer service three days a week or seven days within a 14-day period. A number of individuals have expressed interest in participating in this pilot. 

Family and Child Care Connections is well-positioned to ensure that family child care is taken into account in government policy-making and that the voices of providers are heard. The agency sits on a number of key ELCC committees and organizations including:

• The Minister’s Advisory Committee on ELCC, created to oversee the implementation of Newfoundland and Labrador’s 2024 to 2026 Early Learning Action Plan.
• The Advisory Committee to the Education Accord NL and the Early Learning and Child Development Pillar, with its vision that all families will have access to a high-quality, affordable, flexible and inclusive early learning and childcare system that is publicly managed, planned and funded by 2034.
• The Early Childhood Educators Human Resources Council, a not-for-profit organisation focused on strengthening the Early Learning and Child Care (ELCC) workforce. 

Challenges

If family child care is to continue to expand across the province and increase access to child care in communities with little or no regulated spaces, a number of challenges will need to be addressed.

Recruitment and retention of agency monitors: Agency monitors earn less than many providers despite being required to have at least Level II ECE certification and prior experience as a family child care provider, complicating recruitment efforts.

Historically, monitors did not receive the ELCC supplement until 2017, some years after providers were eligible, resulting in a gap in income parity. Although monitors’ annual salaries have since increased to $65,000, they are now earning less than most providers. While retention of existing monitors has not been an issue to date, it will likely be challenging if additional monitors will hired for an experienced family child care provider to take a significant cut in income for a more senior role as a monitor.

Geographic and Logistical Challenges:

Monitors cover extensive and remote geographic areas. For example, the monitor based in Clarenville, monitors homes as far away as the Burin Peninsula –  a 230 km drive each way, as well as to such remote communities as the Conne River First Nations reserve – a 225 km journey, much of it off the highway on a remote stretch of road. 

Monitors often travel two-three hours one way, rely on friends or relatives for overnight stays, and face harsh winter weather.

The agency is at capacity: Agency monitors are operating at capacity, and the agency lacks funding to hire additional staff to support new providers. Interest from individuals in remote Inuit communities in eastern Labrador has been noted, but travel costs and logistical challenges prevent regular in-person monitoring and support visits, which have to be done virtually.

Landlord Restrictions: Some interested potential providers who live in rental accommodation are unable to secure landlord approval to make the necessary modifications to the property to meet regulatory requirements, leading to withdrawal from the application process. As a result, most providers are home owners, possibly limiting opportunities for further provision.

Approval and Red Tape: Inconsistent approval procedures across the province has hindered the initial approval process for some family child care providers. For example, outside the St. John’s area, Service NL, which conducts Environmental Health and Fire/Life Safety inspections, does not conduct initial home visits, leaving providers to determine compliance on their own.

Conclusion

While significant progress has been made in expanding and supporting family child care across Newfoundland and Labrador, ongoing challenges underscore the need for continued strategic investment and policy refinement. Addressing issues such as recruitment and retention of agency monitors, geographic and logistical barriers, landlord restrictions, and bureaucratic delays is essential to sustain and grow this vital component of the province’s childcare system. By tackling these obstacles, family child care can further enhance its ability to provide high-quality, accessible, and flexible childcare services, especially in underserved and remote communities, ensuring it remains a key part of the province’s early learning and childcare infrastructure.

1. This document draws on historical records detailing CUPW’s involvement with Family and Child Care Connections, insights from a focus group with agency staff and a follow-up interview with the director, information from the Government of Newfoundland and Labrador’s Department of Education website, and space data from 2004–2023 gathered from various editions of the Childcare Resource and Research Unit’s Early Childhood Education and Care in Canada. ↩︎
2. The National Child Benefit was a joint federal, provincial and territorial initiative introduced in 1998 to support Canadian children living in low income families. In 2016 it was replaced by the Canada Child Benefit, a tax free monthly payment to eligible families. ↩︎
3. The Community Action Program for Children provides funding to community organizations that promote healthy development of vulnerable children 0-6. The Public Health Agency of Canada funds more than 400 CAPC projects across the country. ↩︎
4. Trainee Level certification requires completion of an orientation course and proof of registration in a provincially-recognized post-secondary ECE program. Level 1 certification requires a provincially approved certificate (normally 1-year full-time studies) in ECE. For further details on Newfoundland and Labrador’s certification and classification levels see: AECENL child care certification ↩︎
5. Prior to 2017, family child care providers were required to have entry level certification and complete 30 hours of professional development every three years. The new legislation changed the requirement to trainee level and 10 hours of professional development per year. Requiring a Level 1 for exclusively infant care was a new requirement. ↩︎
6. For further details on family child care grants and related conditions, see Family child care operating grant program policy and standards manual     ↩︎
7. As independent contractors, providers cover all program expenses out of their income from grants and parent fees. These expenses, along with other costs, are deducted from their taxable income. ↩︎
8. Note: The Child Care Inclusion Policy is currently under review. ↩︎
9. Note: The Quality Enhancement Grant is currently under review, and grants are not available at this time. ↩︎

Acknowledgements

The opinions and interpretations in this publication are those of the author and do not necessarily reflect those of Employment and Social Development Canada.

ISBN 978-1-997048-41-1 (web)