The province is increasing funding to private daycares to offset a reduction in fees.
The provincial government promised to cut daycare fees by 25 per cent in January, as part of the joint provincial-federal plan to offer $10 a day daycare by 2026.
That prompted backlash from operators who said they would not be able to stay open under the new fee structure.
Provincial funding is increasing by 25 per cent to match the drop in childcare rates.
Officials say the new funding agreement will be offered to all child-care providers, including previously unfunded or partially funded centres.
Operators must sign onto the new agreement by Apr. 1. Officials say it is essentially the same as previous funding agreements, save for the increase in funding.
The fee cut will take effect on Apr. 1 and be retroactive to Jan. 1. Parents will get a refund for 25 per cent of the fees paid during that time.
According to the province the fee reduction will save parents of toddlers $200 a month. The fees are set to be further reduced, to 50 per cent, by the end of the year.
Operators will also be eligible for a one-time grant, based on a formula developed by the province, to help offset lost revenue from childcare fees which were frozen ahead of the 25 per cent drop in childcare fees.
Government has set aside $1 million for the one-time grant.
