Child Care Fee Reduction Initiative - Information for providers
Last updated on July 21, 2026Child care providers are essential partners in delivering affordable, high-quality, and inclusive child care for families throughout B.C. The Child Care Fee Reduction Initiative provides funding to help providers manage operating costs and reduce fees for families.
On this page
- Information for 2026-27
- Eligibility
- Opt-in or renew
- Once approved
- Child care provider payment rates
- Fee increases for participating facilities
- Waitlist and waitlist-related fees
- Reporting
- Frequently asked questions
Information for 2026-27
This year, there are no major changes to base funding or the wage enhancement program. However, there are several policy shifts for the fee reduction program, including:
- As of April 1, 2026, child care providers in the fee reduction program must offer at least 9.5 hours of care per day before they can charge additional fees for extra hours
- Providers transitioning from the $10 a Day ChildCareBC program to the Child Care Fee Reduction Initiative need to meet specific conditions. related to their parent fees and are expected to maintain comparable hours and services, keep staff wages and benefits, and cannot introduce optional fees for previously included services
- A streamlined pathway for school board-operated child care programs to set fees that help recover reasonable costs to operate child care on school grounds. This aligns with recent changes to enable school districts in B.C. to support families with more child care on school grounds. Child care providers joining the fee reduction program must start with fees that reflect typical rates in their region
The affordability benchmarks for new child care providers will remain at the regional 80th percentile for children under 36 months and at the 75th percentile for all other care categories.
Providers already in the fee reduction program can raise their fees by up to 3% of the regional median fee, or higher in limited cases.
In addition to the 3% fee increase, providers receive base funding, fee reductions for families, provider payments and wage enhancements for their staff.
To learn more, check the 2026-27 Child Care Fee Reduction Initiative guidelines or 2026-27 Early Childhood Educator Wage Enhancement guidelines. Important timelines and additional information are available on the apply or renew web page. If you have questions or need support, call the Child Care Service Centre at 1-888-338-6622 (press 2), Monday to Friday, 8:30 am to 4:30 pm.
Eligibility
Program eligibility
To be eligible for the fee reduction program, the child care centre must have an Child Care Operating Funding agreement in place, enrol all eligible care categories under the same licence, and offer care in at least one of the following categories:
- Group child care
- Under 36 months
- Aged 3 years to kindergarten
- Kindergarten
- Grade 1 to age 12
- Family child care
- Under 36 months
- Aged 3 years to kindergarten
- Kindergarten
- Grade 1 to age 12
- Licensed preschool
- Four hours or less per day
New applicants and modified facilities must set fees in line with regional affordability benchmarks for their care . Centres that do not charge a child care fee may still be eligible.
Refer to the funding guidelines for full eligibility details:
- 2026-27 Child Care Fee Reduction Initiative funding guidelines (PDF) (effective April 1, 2026 – March 31, 2027)
- 2025-26 Child Care Fee Reduction Initiative funding guidelines (PDF) (effective April 1, 2025 - March 31, 2026)
For information on emergency closures, visit the child care health and safety page.
Opt in or renew
Providers can use My ChildCareBC Services to:
- Opt in or renew participation in the Child Care Fee Reduction Initiative when applying for operational funding
- Check application status
- Receive notifications and reminders by email
Once approved
Providers participating in the fee reduction program must meet the following requirements:
- Calculate the fee reduction amount for each child using Schedule C of the funding agreement
- Inform families in writing​
- Notify families that the centre is approved to participate in the fee reduction program
- Include the family’s fee reduction amount and any ministry-approved fee increases
- Share any relevant information related to the Child Care Operating Fund agreement
- Inform staff in writing
- Advise staff if a fee increase was approved based on the intention to increase wages
- Reduce parent fees
- Apply the approved fee reduction rates for families
- Keep fees at the ministry-approved amounts
- Obtain ministry approval before implementing any fee increase
- Comply with the funding agreement
- Remain enrolled for the duration of the funding agreement, unless otherwise approved in writing by the ministry
- Refer to your specific funding agreement in My ChildCareBC Services for details
Optional support documents:
Child care provider payment rates
Monthly funding through the fee reduction program is provided to help cover operational costs, including staff wages and administration.
These payments help offset the potential financial impact of the 3% annual fee increase limit. Child care 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 child care providers receive the following maximum monthly amounts based on a 20-day month, per full-time enrolled space.
|
Under 36 months
|
|
|
Age 3 years to kindergarten
|
|
|
Kindergarten
|
|
|
Grade 1 to age 12
|
|
| Preschool |
|
Fee increases for participating facilities
The annual fee increase limit is 3% of the regional median fee. Exceptional fee increases may be approved up to 10% of the regional median fee or more, at the ministry’s discretion. Child care providers requesting an exceptional fee increase must explain the reason for the increase and submit supporting evidence, such as receipts, quotes and financial statements. Providing complete documentation with your application helps reduce review timelines. Full details are in the funding guidelines.
Additional Support: The ChildCareBC Maintenance Fund is available for emergency situations. Contact the ministry for details.
Waitlist and waitlist-related fees
Child care providers receiving base funding cannot charge waitlist or waitlist-related fees. This ensures equitable access to child care.
Waitlist fees include any charges for adding, maintaining, or changing a child’s position on a waitlist. The ministry determines what qualifies as a waitlist fee.
Reporting and compliance
Child care providers must submit monthly enrolment reports and comply with audit requirements. The ministry may review funding recipients for administrative accuracy and compliance.
Questions about the audit process can be directed to the Verification Audit Unit team at Verification.and.Audit.Operations@gov.bc.ca.
Frequently asked questions
How does participating in the fee reduction program impact my business taxes and what I can claim when filing with the Canada Revenue Agency?
Please contact the Canada Revenue Agency for guidance on your specific tax situation. The ministry cannot provide tax advice.
Why are there different funding amounts for group and family providers?
Funding amounts are based on data collected from over 5,000 licensed child care centres each year. On average:
- Fees at group centres are higher for most care categories than at family centres
- Monthly operational expenses, such as wages, program supplies, and rent/leases at group centres are higher than those at family centres
Fee reduction amounts may differ by care category, but they achieve similar average out-of-pocket costs for families.
Is a centre I own or work at eligible for funding for my own child or a child who is related to me?
A centre may be eligible for base funding and fee reductions when the person providing care is not the child’s parent, or when the parent is a staff member of the facility. “Parent” includes a person with whom a child resides and who stands in place of a parent of the child.
Group facilities may be eligible for funding if another staff member provides the child care for the owner’s or licensee’s child.
A provider who is caring for children related to them, whether the care is provided at a group or family child care facility, may be eligible for funding for these children if the relative is not a parent or a person standing in place of the parent.
How are fee reductions calculated when a centre is closed but still charges parent fees?
Providers in the fee reduction program agree not to charge full-time child care fees for any closure periods without ministry approval.
Approved closures are eligible for fee reductions. The ministry provides the same reduction during these periods as if the centre were open.
Refer to the funding guidelines for the complete closure policy.
Does the fee reduction amount for school-aged children increase for full days of care, such as during seasonal breaks or on professional development days?
No. Fee reductions are provided at a flat rate year-round.
Maximum reductions apply to full-time enrolment, five days per week, over four hours per day. Pro-rated amounts apply for fewer days or shorter hours.
If a provider charges more during school breaks, families’ out-of-pocket costs will increase.
Families eligible for the Affordable Child Care Benefit may receive higher benefit rates during breaks.
What happens if I need to close my centre temporarily?
Providers may not charge fees for closures longer than two consecutive weeks in a month or four weeks total per funding term, excluding statutory holidays, unless approved by the ministry.
Supporting information
Contact information
Child Care Service Centre
Monday to Friday, 8:30 a.m. to 4:30 p.m. PT
Interpreting services are available in over 140 languages
1-888-338-6622 (option 2)