There will be $5 million in new money invested in child care over the next five years, Health and Social Services Minister Brad Cathers announced this morning.

The top priorities the government has heard from the child care community have been regarding the difficulty in recruiting and retaining staff and the financial burdens faced by parents accessing child care services, Cathers told a news conference.

'We are now able to further address both of those issues,' he said.

The money will be directed at subsidies for parents, wages for day care workers and investment in training.

Approximately $500,000 in the money will be flowing within the next few months to immediately improve wages and increase the parent subsidy program.

Currently, a single parent with two children receives about $900 in child care subsidies.

Cathers said there will be changes in the amount of money provided and the eligibility criteria.

The wage increases will flow through the direct operating grant already given to child care providers.

'The extra funds will come with additional calls for accountability and reporting,' said Cathers.

There will be measures in place to ensure the money is used specifically for the pay of staff, he said.

The minister was unable to provide further details on the exact nature of the increases.

He said the government first needs to meet with the stakeholders to present them the plan and get their input.

The funding will mark a $1.2 million-increase in the department's annual funding to child care. It will take the budget to $6.5 million annually at the end of the five years.

Cathers also announced the $1.3 million in federal child care money that flowed to the territorial government will be used to establish a $1.3-million capital fund.

The one-time fund will be used to create more spaces in child care with a focus on children under 18 months old.

Consideration will also be given to programs that have a focus on early childhood learning, cultural needs of parents and children and collaborative initiatives between first nations, municipalities and non-governmental organizations, he said.

The announcement is part of the government's five-year plan to address the priorities in the system and create sustainability, said Cathers.

During the Yukon Party's first term in office, it focused on increasing the direct operating grant.

The governing party increased child care funding by 30 per cent during its first mandate, taking its funding level to $5.3 million.

The Liberals have been questioning the Yukon Party government heavily on child care in the legislature this spring.

Liberal Leader Arthur Mitchell has asked the government to provide immediate financial assistance through a boost in the operating grant and subsidy before working on its integrated long-term plan.