3. The Canada Assistance Plan (federal) shares in the day care expenses for families which meet two sets of criteria.¹ The first set are social criteria and describe those families which can be considered to require financial assistance with their day care expenses. These social need criteria apply to all families whose income is obtained through employment or through public assistance. A family is eligible for assistance when it is:

- a single parent family where the parent is working, attending an educational institution, undertaking medical treatment, or undergoing a rehabilitation program;

- a two-parent family where both parents are working, or where one parent is working and the spouse is incapacitated, attending an educational institution, undertaking medical treatment, or undergoing a rehabilitation program; or

- any family for which

... day care is arranged or recommended by a social welfare agency as part of a child protection service;

... day care is arranged or recommended by a social welfare agency on the basis of individual assessment of special needs of the family or the child, including physical, emotional, mental, developmental, language, or other identifiable and recognized handicap;

... day care is arranged or recommended by a social welfare agency in situations where it is possible to document aspects of the physical, social or cultural environment which are seriously detrimental to the development of the child and to his equality of opportunity when he enters the educational system;

... emergency day care service is required to meet short-term family crises.

The second set of criteria are financial and are used to determine the level and amount of subsidy which will be made available to the family. Each province which administers this scheme must apply either a needs test (income compared to needs) or a means test (income assessment). If a family is assessed below the "turning point" (or minimum level), they are granted a full subsidy and the federal plan pays 50% of the costs. If the family is assessed above the turning point but below the maximum level for which a subsidy may be paid, they are expected to contribute 50% of their income above the turning point toward their day care costs. The balance is divided between provincial and federal funds.

1.Health and Welfare Canada, "Policy guidelines relating to the provision of day care services for children under the Canada Assistance Plan" as quoted in H. P. Hepworth, Day care services for children, (Ottawa: Canadian Council on Social Development, 1975), Appendix A, pp. 135 - 139.