It most certainly isn't "impossible" to raise a family on one mid-range income, or one full time income and a part time income. It simply requires economizing a little bit.
If it's actually more expensive to have mom work due to the additional expense of childcare, she should simply stay home for a couple of years (for free!) so that those expenses can be cut down on a bit until the kids are old enough to start school and day care is no longer necessary. The answer isn't to get government involved in raiding other people's pocketbooks to subsidize your lifestyle choices.
From the POV of a daycare operator, they have a fixed limit of children that they can care for. If it costs them $60 per day per child to provide care and they max out at 20 children, then their daily revenue is $1,200. If they can fill to capacity in a free market, then they get $1,200 per day. Under this government scheme they get $50 per day and if operating at capacity they gross $1,000 per day. This daycare operator is now worse off under a government scheme than under the free market.
What this government scheme does is it expands the number of daycare operators, each now operating at less than full capacity, and thus eager to entice more parents into the scheme to boost their children under care.
Subsidies DISTORT the marketplace. They distort decisions made by consumers. They harm the people who are taxed.
Again, the answer to people making stupid life decisions isn't to encourage them by raiding other people's bank accounts. It is to discourage the negative behavior in the first place.
In the case of the OP, it rather clearly is not, which is why they are not working. Their pay is not sufficient to offset the price of childcare.The cost of daycare is simply outweighed by the $40,000+ the parent may bring into the household.
It's basically a wash.
Is there any particular reason someone should have to live in their own home?It is literally impossible to do that in a city like Toronto where the average home price is around 700,000$.
My family lived in apartments until I was 16 years old.