We’re launching… oh wait, we’re not!

Recent changes to the Alberta Child Care Subsidy are expected to impact 2021 living wages

Today was supposed to be the day. After months of collaboration and calculations from municipalities and agencies across Canada, we were planning on launching the Alberta Living Wage Network along with 12 new living wages for municipalities across the province.

We decided to hold off, but for a really good reason.

Earlier this week the provincial government announced that it is raising the income cutoff for the Alberta Child Care Subsidy (ACCS). Starting September 1, families earning a household income of as much as $90,000 can apply to receive $125 a month for child-care costs, up from the $75,000 household income threshold. Approximately 12,000 more children will receive support, including children enrolled in pre-school programs.

“We were delighted by the news of the increase in the child care subsidy in our province. This is a positive move to make life more affordable for many Albertans with lower wages, and a step in the right direction,” says Franco Savoia, Chair of the Alberta Living Wage Network.

Originally the Network had decided to exclude the ACCS in our calculations.

“While the ACCS, in its current form, is quite generous for lower income families, it has a very steep cut off. At an annual family income of $74,999, a family can get a maximum of $408 per infant, $354 for a preschooler, and $201 for a school aged child. However, once the family makes $75,000, they would not be eligible for the subsidy,” explains living wage coordinator Ryan Lacanilao. This meant if both parents earned $18 per hour, they would receive $6,660 in ACCS benefits. However at $18.03 per hour, they would lose the subsidy completely, and their net annual income could decrease by as much as $4,073.

Since the wage earners in the living wage reference family needed to earn more than $18 per hour to meet their monthly expenses in many communities, we decided to not include the ACCS in our calculation. However with recent changes, we’ve decided to revisit the calculation.

So, when are you launching?

We’re crunching the numbers and expect to have new living wages in mid-September. We appreciate your patience.