How to Combine Child Care Operating Funding with Fee Reduction and Wage Enhancement Programs in BC

How to Combine Child Care Operating Funding with Fee Reduction and Wage Enhancement Programs in BC

Running a licensed child care program in British Columbia is costly. Rent, staffing, and daily operating expenses keep rising, while families expect fees to stay affordable. The good news is that Child Care Operating Funding (CCOF) can be used alongside the Fee Reduction Initiative (FRI) and the Early Childhood Educator (ECE) Wage Enhancement—these programs are meant to support each other, not replace one another.

When used together, these programs can cover up to 75% or more of your eligible operating costs and staff wages, while also reducing fees for families). The actual percentage will depend on your centre’s size, wage structure, and number of enrolled children.

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How Child Care Operating Funding Fits with Other ChildCareBC Programs

Child Care Operating Funding (CCOF) is ongoing provincial support for licensed child care providers. It helps pay for day-to-day expenses and forms the base for other ChildCareBC programs.

To receive CCOF, your program must:

• Hold a valid licence under the Community Care and Assisted Living Act
• Be open and actively providing child care
• Be in good standing with the Province
• Agree to serve families receiving the Affordable Child Care Benefit
• Complete the annual Provider Profile Survey

Eligible providers include:

• Licensed family child care providers
• Licensed group child care providers

Once you are approved for base CCOF, you can choose to participate in the fee reduction and wage enhancement programs. Base CCOF approval is required before you can access these additional supports.

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Combining CCOF with the Fee Reduction Initiative (FRI)

The Fee Reduction Initiative lowers the amount families pay, while the Province reimburses you for the lost revenue. Some providers worry about “double-dipping,” but these programs are designed to complement each other.

Here’s how the combination works:

• CCOF helps cover general operating costs like rent, utilities, and supplies
• FRI replaces part of the parent fee income, so you are not penalized for lowering fees
• Families benefit from lower monthly costs, while your revenue remains stable

Important rules:

• You must be approved for base CCOF before joining FRI
• You must follow provincially set parent fee caps
• Reduced fees must be passed on to families in full

Not applying fee reductions correctly can result in repayment demands or removal from the program.

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Combining CCOF with ECE Wage Enhancement

The ECE Wage Enhancement adds hourly funding to increase wages for eligible early childhood educators. This program helps with hiring and keeping staff.

When used together:

• CCOF supports your centre’s overall operations
• Wage Enhancement is paid directly to eligible staff as a top-up
• You must pass the full enhancement amount to employees

Key points:

• Only eligible ECE and ECE Assistant roles qualify
• Wage enhancement cannot replace your regular payroll obligations
• Accurate payroll records are required for compliance

Participation is optional, but most centres use it to stay competitive in hiring.

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How All Three Programs Work Together

Think of these programs as three separate streams with different purposes:

• CCOF = base operating stability
• FRI = affordability for families
• Wage Enhancement = stronger wages for educators

You can receive all three at the same time if you:

• Maintain your licence and good standing
• Complete required reporting and surveys
• Follow all fee cap and wage flow-through rules

Platforms like GrantHub can help you quickly check which programs fit your child care business profile.

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Common Mistakes to Avoid

1. Assuming fee reduction replaces operating funding
   Fee reduction does not cover your operating costs. You still need CCOF to be eligible for FRI.

2. Not passing funds through correctly
   Wage enhancement must be paid to staff, and fee reductions must benefit families. Holding back funds can trigger audits.

3. Missing the annual Provider Profile Survey
   This is required for ongoing CCOF payments. Missing it can pause or cancel your funding.

4. Applying before your licence is active
   New providers must be licensed, open, and operating before approval for base funding.

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Frequently Asked Questions

Q: Can I receive Child Care Operating Funding and fee reduction at the same time?
Yes. Once approved for base CCOF, you can opt into the Fee Reduction Initiative. These programs can be used alongside each other.

Q: Is Child Care Operating Funding a one-time grant?
No. CCOF is ongoing funding, with annual requirements such as surveys and compliance checks.

Q: Do I have to participate in wage enhancement if I receive CCOF?
No. Wage enhancement is optional, but many providers participate to improve staff retention.

Q: Is Child Care Operating Funding taxable income?
In most cases, operating funding is considered business income. Check with your accountant for details.

Q: Can new child care centres apply right away?
You must be licensed, open, and providing care before you can be approved for base CCOF.

GrantHub tracks hundreds of active grant and funding programs across Canada—see which ones match your child care business.

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Next Steps

Combining Child Care Operating Funding with fee reduction and wage enhancement is a practical way to stabilize your child care business in BC. The key is knowing how each program works and meeting all compliance rules.

If you want to explore how these programs fit with other provincial and federal supports, tools like GrantHub can help you identify funding options that match your licence type, location, and staff.

See also:

• How to Use Small Business BC to Start or Grow a Business
• BC Land Matching Program: Eligibility for New and Young Farmers