Child Care Fee Reduction Initiative - Information for providers

Last updated on March 27, 2024

For 2024-25 Child Care Operating Funding and Child Care Fee Reduction Initiative renewals:

  • Participating providers can no longer charge waitlist and waitlist-related fees
  • The Child Care Fee Reduction Initiative will align with the BC School Superintendents Association (BCSSA) regional chapters
  • Technology solutions will automate and streamline the review and approval process

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.

On this page:

New for 2024-25

  • For 2024-25, we are providing the Child Care Fee Reduction Initiative funding guidelines in advance to assist with your planning. We are also opening the renewal application period earlier, to help ensure continuous funding for providers and stable fee reductions for families.
  • Starting early January, the Contact Centre will offer extended service hours. Each Thursday, the centre will take calls until 7:00 pm
    • In addition to extended service hours, the Ministry has also increased the number of staff available to respond to enquiries and assess fee increase requests over the 3% annual fee increase limit
  • The ministry introduced tech solutions that will automate and streamline the review and approval process. This means if you request:
    • No fee increases: Providers who submit complete applications and signed funding agreements will receive an automatic approval notification for the 2024-25 year within a few business days
    • Fee increase request 3% and below: Providers who have requested a fee increase at 3% and below of the regional median for their BC School Superintendents Association region, and who submit complete applications and signed funding agreements will receive an automatic approval notification for the 2024-25 year within a few business days
    • Exceptional fee increase requests above 3%: Providers who have requested a fee increase above 3% of the regional median for their BC School Superintendents Association region, and who submit complete applications and signed funding agreements will receive a temporary approval up to the month that the fee increase takes effect unless that fee increase is for April 2024
  • Starting in 2024-25, the Child Care Fee Reduction Initiative will align with education-based regions. Changing to education-based regions will help the program remain regionally responsive and further child care’s integration into the Ministry of Education and Child Care
  • Starting April 1, 2024, child care providers receiving Child Care Operating Funding can no longer charge waitlist and waitlist-related fees. This will ensure that waitlist fees are not a financial barrier for families seeking equitable access for child care throughout the province
  • 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

2024-25 Renewal - Important timelines for child care providers

  • February 21: 2024-25 funding agreements are available for providers to review and agree to the terms and conditions by completing the declaration section on their program confirmation form
  • March 5: To ensure continuous funding through April 1, providers must agree to the terms of their funding agreements by completing the declaration section of their program confirmation form by this date
  • March 15: Child care providers can start submitting enrolment reports for April 2024
  • April 1: 2024-25 Funding term begins. Funding is disbursed to eligible child care providers who have submitted claims
  • April 30: Renewing providers will have until April 30 to submit renewal applications to be eligible for funding starting April 1
  • May 1: Approved child care providers can start submitting their monthly ECE reports through the ECE Reporting Tool starting May 1 to receive April 2024 funding. Payments are calculated based on the total number of hours worked each month, which is why ECE-WE is reported and paid after the end of each month

Eligibility

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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:

  • Group child care
    • Infant and toddler care (under 36 months)
    • Kindergarten (before- and after-school care)
    • Aged 3 years to kindergarten
    • Grade 1 to age 12
  • Family child care
    • Infant and toddler care (under 36 months)
    • Kindergarten (before- and after-school care)
    • Aged 3 years to kindergarten
    • Grade 1 to age 12
  • Licensed preschool (four hours or less)

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.

 

Emergency closures

Child Care Operating Funding base funding may be paid when a centre is temporarily closed due to an emergency. Eligible circumstances include:

  • Unplanned closures due to evacuation order or similar restrictions issued by a First Nation, provincial, federal, municipal government or health authority
  • Natural disasters
  • External circumstances outside the provider’s control, at the ministry’s discretion

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:

  • Name of child care centre
  • Facility ID (e.g. F/G-XXXXXX-XXXXXX)
  • Closure date
  • Expected reopen date
  • Reasons for closure
  • Type of funding being requested

 

 

Opt in or renew

My ChildCareBC Services

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). 

Once approved

Providers are required to: 

  • Inform parents in writing​
    • Inform parents that their child care centre is approved to participate in the initiative, and include their fee reduction amounts and ministry approved fee increases
    • Advise parents of any relevant information to the Child Care Operating Funding funding agreement 
  • Inform staff in writing
    • Notify centre staff if a fee increase was approved based on the intention to increase wages
  • Reduce parents fees
    • Reduce fees for parents by the fee reduction rates
    • Keep child care fees at the ministry-approved rates
    • Obtain approval from the ministry before raising any child care fees
  • Comply with the agreement
    • Remain enrolled for the duration of the Child Care Operating Funding funding agreement, unless approved in writing by the ministry
    • Refer to your specific funding agreement for more information, found in My ChildCareBC Services

Download the following optional support documents:

Provider payment rates

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

Providers may defer any unused portion towards future anticipated operational expenses and increases in operational costs but may not be used for profit. 

 

Rates

Approved providers receive the following maximum monthly amounts based on a 20-day month, per full-time enrolled space.

Infant and toddler
Under 36 months

 
  • Group and multi-age: $96.00
  • Family: $62.80
  • In-home multi-age: $65.80

Age 3 to kindergarten

 
  • Group and multi-age: $52.60
  • Family: $42.00
  • In-home multi-age: $44.40

Preschool

 
  • Group and multi-age: $12.75

 

Kindergarten
Before- and after-school

 
  • Group and multi-age: $42.00
  • Family: $31.20
  • In-home multi-age: $33.60

Grade 1 to age 12

 
  • Group: $26.00
  • Family: $20.60
  • In-home multi-age: $21.80

Fee increases for participating facilities

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

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.

Regions

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.

How will this change impact child care providers?

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.

Reporting

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.

Access to the Early Childhood Educator Wage Enhancement, the Maintenance Fund and New Spaces Fund

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.

Frequently asked questions

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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:

  • Fees at group facilities are higher for most care categories than at family facilities
  • Monthly operational expenses (e.g., wages, program supplies, rent/lease, etc.) at group facilities are higher than those at family facilities

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.

 

$10 a Day ChildCareBC Centres

Child Care Operating Funding and the Child Care Fee Reduction Initiative

Funding (to provider)
  • Based on eligible expenses as negotiated under the funding agreement (fully funded, less $10 a day per full-time space), inclusive of the Early Childhood Educator Wage Enhancement
  • CCOF Base funding; plus
  • CCFRI Provider Payment plus
  • Early Childhood Educator Wage Enhancement

Parent fees
  • $10/day or $200/month for full-time care
  • $7/day or $140/month for part-time care
  • Monthly Maximum Parent Fee Reductions range from $320 to $900, per full-time enrolment, depending on the type of care accessed.
  • Out-of-pocket parents fees vary based on the facility’s starting fee.
  • “$200 fee floor” (With some exceptions):
  • $10 a day or $200/month for full-time care
  • $7 a day or $140/month for part-time care

Term of funding
  • 12-24 months
  • Up to 12 months

Fee increase limit
  • N/A
  • 3% of regional median parent fee, with limited exceptions

Ability to combine with other affordability programs?
  • Affordable Child Care Benefit
  • Young Parent Program
  • Affordable Child Care Benefit
  • Young Parent Program

What happens in unexpected circumstances?
  • Increase funding may be provided, if eligible outlined in the $10 a day Policy Manual
  • Fee increases may be approved, if eligible, as outlined in the CCFRI Funding Guidelines
 

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.

 

 

Contact information

Child Care Service Centre
Monday to Friday
8:30 am to 4:30 pm

Toll Free
1-888-338-6622 (Option 2)
Office
250-356-6501 (Victoria)