For 2024-25 Child Care Operating Funding and Child Care Fee Reduction Initiative renewals:
Child care providers are our partners in delivering access to affordable, quality and inclusive child care for families. The Child Care Fee Reduction Initiative offers funding to help providers with the costs of running a child care centre and to reduce parent fees for families in B.C.
Program eligibility
To be eligible for the Child Care Fee Reduction Initiative, the child care centre must have a Child Care Operating Funding agreement in place, enrol all eligible care categories offered at the same location, and offer child care in at least one eligible child care category:
New applicants and modified facilities are required to set their parent fees in line with the regional affordability benchmarks of other local providers delivering the same type of care. Centres that do not charge a parent fee may still be eligible for the Child Care Fee Reduction Initiative.
Refer to the funding guidelines for information on full eligibility requirements and regional affordability benchmarks, or contact the ministry to discuss your eligibility and application.
Child Care Operating Funding base funding may be paid when a centre is temporarily closed due to an emergency. Eligible circumstances include:
Emergencies that were preventable or originated within the centre, and permanent closures are not eligible.
To ensure consistent fee reductions for parents, closures outside of the provider’s control may also be eligible for Child Care Fee Reduction Initiative funding if the centre is approved to collect parent fees.
Early childhood educator wage enhancement funding is also available during periods of unplanned temporary closure if the provider continues to pay staff wages.
To report an emergency closure and request funding, please email CCOF@gov.bc.ca. The ministry will review your request and advise on the next steps. Include the following information when you contact the ministry:
Providers can use My ChildCareBC Services to opt in or renew their participation in the Child Care Fee Reduction Initiative when they apply to the Child Care Operating Funding program. Providers can check the status of their application and will be notified by email when there is a message, notification or reminder on My ChildCareBC Services.
Refer to the Child Care Operating Funding opt in or renew page for important dates and to apply for Child Care Operating Funding. Providers can opt in to the Child Care Fee Reduction Initiative at any time. To opt out, providers can call the Child Care Services Centre at 1-888-338-6622 (Option 2).
Providers are required to:
Download the following optional support documents:
In recognition of the critical role that providers play, monthly funding through the fee reduction program is provided to help cover operational costs associated with running a child care centre, including staff wages and administration. This funding is in addition to base funding, fee reductions for families, and the Early Childhood Educator Wage Enhancement.
Provider payment amounts were increased in December 2022 to help offset the potential financial impact of the 3% annual fee increase limit. Providers may defer any unused portion towards future anticipated operational expenses and increases in operational costs but may not be used for profit.
Program |
Funding Amount |
Purpose |
Child Care Operating Funding, Base Funding |
Up to $240 per month per child
|
Operational costs |
Child Care Fee Reduction Initiative, Provider Payment |
Up to $96 per month per child
|
Operational costs |
Child Care Fee Reduction Initiative, Parent Fee Reduction |
Up to $900 per month per child |
Reduce fees for families |
Early Childhood Educator Wage Enhancement |
Effective December 1, 2023: Up to $6 per hour for eligible Early Childhood Educators OR $960 per month for each eligible Early Childhood Educator, based on a 20-day month at eight hours each day Early Childhood Educators may also be eligible for the new Specialized Certification Grant. |
Enhance the wages of Early Childhood Educators |
Rates
Approved providers receive the following maximum monthly amounts based on a 20-day month, per full-time enrolled space.
Infant and toddler
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Age 3 to kindergarten
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Preschool
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Kindergarten
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Grade 1 to age 12
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For 2024-25, fee increase limits are unchanged and remain at 3% of the regional median fee. These limits support families to access affordable child care. In addition to the 3% fee increase, providers are supported through base funding, provider payments, fee reductions for families, and the Early Childhood Educator Wage Enhancement.
The fee increase limit is subject to change and may be adjusted in the future to make sure our partners are well supported in delivering access to affordable, quality, and inclusive child care for families.
Fee increase exceptions:
The Ministry understands that there may be reasons providers need to increase fees by more than the annual fee increase limit. Exceptional fee increases are considered on a case-by-case basis and may be approved up to 10% of the regional median fee, with limited exceptions.
Providers seeking exceptional fee increases are required to explain the reason the fee increase is needed and submit evidence to support their business case and expenses, such as receipts, quotes and financial statements.
Providing this information and documentation along with the application may help reduce adjudication timelines. Detailed information about exceptional fee increase requests and how they are assessed is available in the Child Care Fee Reduction Initiative funding guidelines.
The BC Maintenance Fund is available to help eligible facilities in emergency situations and providers may contact the ministry to discuss options.
Waitlist and waitlist-related fees are any fees associated with adding, maintaining or altering a parent or child’s position on a waitlist to access child care services at a centre. The ministry has sole discretion to determine whether a fee is a waitlist fee.
Starting April 1, 2024, child care providers receiving Child Care Operating Funding can no longer charge waitlist or waitlist-related fees. This policy change helps ensure that waitlist fees are not a financial barrier for families seeking equitable access for child care throughout the province.
In 2023-24, most participating child care providers, approximately 95%, did not charge a waitlist fee. Providers are not required to refund waitlist fees collected before April 1, 2024.
In 2022, the Child Care Division moved into the Ministry of Education and Child Care to help integrate child care into the broader learning environment.
Starting in 2024-25, the Child Care Fee Reduction Initiative will align with education-based regions, otherwise known as the BC School Superintendents Association Chapters. This change to education-based regions will help simplify program policy while remaining regionally response and furthering this integration.
The policies under the Child Care Fee Reduction Initiative are intended to be regionally responsive, acknowledging differences in operating costs and typical parent fees across the province.
Child care providers can confirm their BC School Superintendents Association Chapter by referring to Appendix A or by logging into their Child Care Fee Reduction Initiative application – Program Confirmation Form.
For over 96% of eligible program spaces, the change to education-based regions will change the regional limits on fees and fee increases by a small amount or even increase it when compared with 2023-24.
To help ease this transition for impacted providers, the Ministry will consider case-by-case exceptions. See the Child Care Operating Funding guidelines for more information.
Providers are required to regularly report to the ministry. Refer to the Child Care Operating Funding monthly enrolment reporting page for information on reporting requirements.
Child care providers must be enrolled in the Child Care Fee Reduction Initiative for all eligible care categories at the same location to receive the Early Childhood Educator Wage Enhancement for their educators and to access the BC Maintenance Fund and New Spaces Fund. Providers that are eligible for the Child Care Fee Reduction Initiative and choose not to opt in are not eligible for these programs.
If I am approved to participate in the Child Care Fee Reduction Initiative, how does this impact my business taxes and what I can claim when filing with the Canada Revenue Agency?
Please visit and contact the Canada Revenue Agency for support with your specific tax questions.
Why are there different funding amounts for group and family providers?
The parent fee reduction amounts and the provider payment rates are based on data received from over 5,000 licensed child care facilities each year, which indicates that, on average:
Provider payments are provided in addition to Child Care Operating Funding, Early Childhood Educator wage enhancement and parent fee reductions and can be used for operational costs related to child care, including staff wages.
Fee reduction amounts may be different for group and family care, but they result in similar average child care costs for families.
What are the main funding differences between the $10 a Day ChildCareBC program and the Child Care Fee Reduction Initiative?
This table highlights some of the key differences between the $10 a Day ChildCareBC and Child Care Fee Reduction Initiative programs.
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$10 a Day ChildCareBC Centres |
Child Care Operating Funding and the Child Care Fee Reduction Initiative |
Funding (to provider) |
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Parent fees |
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Term of funding |
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Fee increase limit |
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Ability to combine with other affordability programs? |
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What happens in unexpected circumstances? |
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Can a child care provider claim the Child Care Fee Reduction Initiative for their own children at their facility?
No, funding (including Child Care Operating Funding Base Funding and the Child Care Fee Reduction Initiative) can only be claimed when the person providing care is not the parent (defined as a person with whom a child resides and who stands in place of a parent of the child). This is based on the definition of child care in the Child Care BC Act under which Child Care Operating Funding and the Child Care Fee Reduction Initiative are provided.
In the case of a group facility, if another staff member at the facility is the primary caregiver for the children of the owner/licensee, funding can be claimed for these children.
If a provider is caring for children related to them, whether the care is provided at a group or family child care centre, funding can be claimed for these children as long as the relative is not standing in place of the parent.
How are fee reductions calculated when a facility is closed but still charges parent fees?
Providers in the Child Care Fee Reduction Initiative agree not to charge full-time parent fees for any periods of closure without Ministry approval. Each facility’s planned closures are reviewed as part of a provider's application. Refer to the CCFRI Funding Guidelines for the complete closure policy.
We understand that both parents and providers rely on consistent payments. To ensure consistent fee reductions for parents, approved closure periods are eligible for CCFRI.
The Ministry provides the same fee reductions during approved closure periods as the facility would typically receive when open.
Do fee reductions apply for unforeseen closures, such as weather related due to power outages?
To support child care providers during emergencies, as of April 1, 2024, Child Care Operating Funding base funding may be paid when a facility is temporarily closed due to an emergency.
To ensure consistent fee reductions for families, closures outside of the provider’s control may also be eligible for Child Care Fee Reduction Initiative funding if the facility is approved to collect parent fees. Early childhood educator wage enhancement funding is also available during periods of unplanned temporary closure if the provider continues to pay staff wages. Providers participating in CCFRI should email the program if the facility is closed unexpectedly and provide the date and reason for closure.
Refer to the CCFRI Funding Guidelines for the complete closure policy.
Does the amount of the parent fee reduction for school-aged children increase when children need full-days of care, such as during seasonal breaks or on Professional Development days?
No, the CCFRI provides the same flat-rate fee reductions year-round in order to provide families with the highest savings possible. Maximum parent fee reduction amounts for full-time care (e.g., $900/month for children under age three in Group child care) are based on enrolment for five days per week, for over four hours per day. Pro-rated amounts apply for children enrolled fewer than five days per week and/or for four hours or less per day.
Out-of-pocket costs after the fee reductions have been applied will vary based on the fee each provider charges.
Example: A Group facility charges $400/month for before- and after-school care for a child in Grade 1. After the fee reduction, parents will pay $285/month.
This means that if child care providers charge more for care during periods of school closures, your out-of-pocket fees will increase.
Example: The same Group facility charges $600/month for care during summer break for a child who will be starting Grade 2 in September. After the fee reduction, parents will pay $485/month.
Families who qualify for the Affordable Child Care Benefit (ACCB) are eligible to receive higher ACCB rates during spring, winter and summer breaks.
Child Care Service Centre
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8:30 am to 4:30 pm