Public Accounts

The House of Commons Public Accounts Committee met to study the Auditor General’s report on the Canada-wide early learning and child care system, tabled on October 21, 2025. Appearing were Auditor General Karen Hogan, Deputy Minister Paul Thompson, Senior Assistant Deputy Minister Catherine Adam, and Director Ewa Jarzyna from the Office of the Auditor General.

Auditor General Karen Hogan stated that the audit found federal funding had reduced average parent fees to $16.50 per day and supported about 112,000 new spaces by March 2024, but the target of 250,000 new spaces by March 2026 is at risk. She noted that Employment and Social Development Canada lacked sufficient data to track progress on objectives for diverse and vulnerable families and Indigenous early learning and child care, and that the department needs consistent, comparable data across provinces to assess performance and financial sustainability. Hogan recommended better data gathering and reporting to ensure the program meets its goals.

Deputy Minister Paul Thompson acknowledged the report’s findings and said the department is already working to implement its recommendations, including launching a new data portal and co-developing results frameworks with Indigenous partners. He noted that space creation is slower than fee reductions because it involves complex multi-year projects and workforce development, and that the last year of the agreements is expected to be the biggest for space creation. Thompson emphasized that the program has improved affordability and that provinces have flexibility in implementation, with ongoing dialogue to improve reporting and address challenges like workforce shortages.

Senior Assistant Deputy Minister Catherine Adam explained that provinces commit to annual reports and audited financial statements, and that failure to provide them can delay federal payments. She noted that a federal-provincial-territorial data working group has been convened to improve data collection and sharing, and that extension agreements include renewed commitments to better reporting. Adam also stated that provinces submit action plans each year detailing how they will prioritize space creation, including in child care deserts and for low-income families.

Director Ewa Jarzyna clarified that some provincial agreements specified space creation targets as net new, while others did not, leading to inconsistencies in counting. She cited Saskatchewan as an example where an estimated number of school-aged children in family home spaces may have been improperly counted toward new space targets.

During questioning, Hogan agreed that counting unregulated spaces that become regulated as new spaces can inflate numbers, and that the federal government should have set clearer parameters at the outset. She noted that a Statistics Canada survey found many parents reported new spaces did not meet their needs regarding timing, location, or special needs. Thompson acknowledged that the department lacks data on wait-lists, as most provinces do not maintain centralized lists, and that utilization rates vary, with staffing shortages often limiting space use.

Hogan stated that the audit could not identify spending allocation for Quebec because its agreements do not require annual reports on federal funding use, and that the federal government needs better information-sharing agreements with provinces. She noted that the program has improved affordability but that gaps in data prevent full assessment of inclusivity and flexibility goals. Thompson added that the federal government is working with provinces to share best practices and that the Canada Early Learning and Child Care Act requires annual reports to Parliament.

On Indigenous early learning and child care, Hogan said the department lacked information on progress, such as facility renovations, and that funds were managed horizontally across departments. Thompson noted that 60 distinctions-based partnership tables are co-developing a performance framework, which is near completion. On workforce issues, Thompson stated that early childhood educator numbers have grown by 30% since 2021, and that wage grids and benefits are being implemented in most jurisdictions to attract and retain staff.

No procedural debate, motions, or votes occurred during the meeting.