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If you've ever wondered why child care costs what it does - or why fees can still go up even with government funding - you're not alone. Many BC parents are asking the same questions, especially as they try to understand how the provincial Child Care Operating Funding (CCOF) system supports licensed providers and impacts quality.

At Early Learning Society of Kamloops, we’re committed to transparency. Here’s a look at how the funding works, what challenges quality operators face, and why some of the system’s well-meaning rules can create unintended inequities between programs.

What Is the Child Care Operating Funding (CCOF) Program?

The CCOF Program is part of the BC government's strategy to make child care more affordable and accessible. It provides:

It’s a valuable investment—but the funding comes with conditions that affect how centres operate.

The 4-Hour Funding Threshold Creates a Gap

CCOF offers a flat rate of funding depending on whether a child is enrolled for:

  • Under 4 hours per day
  • Over 4 hours per day

This creates a funding “cliff”—not a gradual scale, for centres that are open more than 4 hours per day. Whether a child attends 4.5 hours or 10 hours per day, the centre receives the same amount of funding. That means:

  • Centres offering longer hours of care (such as 7:00am–5:30pm) receive no additional funding for those extra hours.
  • Centres may then have to choose between reducing operating hours closer to 4 hours per day, or continuing to operate longer hours without additional funding.
  • This creates financial strain that must be borne either by working families who need full-day coverage or for quality providers committed to paying staff fairly and ensuing children receive unhurried, enriched care.

Food Programs Add Value—but Aren’t Funded

Many high-quality centres provide nutritious meals and snacks daily, prepared in-house or delivered. These programs:

  • Support children’s brain development and regulation
  •  Relieve busy parents from daily lunch prep
  • Reflect a centre’s commitment to children’s well-being
  • Reduce food scarcity for affected children

Yet, there is no direct provincial funding to support the cost of food programs, food-safe staff, or kitchen operations. Centres that offer meals absorb these expenses and are not permitted to charge for the costs of their meal programs—often subsidizing them through parent fees or fundraising.

Lease Inequities: Subsidized vs. Market-Rate Centres

Another key issue is facility funding. Centres located in school district or municipal spaces often benefit from reduced lease rates—sometimes as low as $1/year. Meanwhile:

  • Non-profit and private providers leasing space at market rates may pay thousands monthly
  • CCOF funding does not account for these lease cost differences

This creates an uneven playing field, even though all centres are subject to the same fee limits and staffing expectations

Why Do Parent Fees Increase?

You might be wondering: if centres receive funding, why do parent fees still rise?

There are a few reasons:

  • CCOF base funding increases are not guaranteed annually
  • Operating costs—including staff wages, rent, insurance, utilities, and food—continue to rise
  • Many centres reach the maximum allowable parent fee under their CCOF enrolment, and can’t adjust further without becoming ineligible for funding
  •  And importantly: centres enrolled in the program are generally limited to a 2–3% annual fee increase

In today’s economic environment, where inflation has pushed groceries, insurance, utilities, and service costs up by much more than 2–3%, this limitation places a real financial burden on providers—especially those offering underfunded quality-added services like:

  • Longer hours
  •  Food programs
  • Inclusive support needs
  • Professional wages for qualified educators with higher credentials

When costs rise faster than allowable fee increases, something has to give—and often, it’s financial sustainability that gets squeezed.

What Does This Mean for You as a Parent?

Here’s what we want families to know:

  • The CCOF system is a critical support that helps lower fees—but it doesn’t fully cover the real, rising costs of delivering high-quality care.

Centres like ours are deeply committed to:

  • Offering full-day, consistent hours for working families
  • Providing meals and snacks that support children’s well-being
  • Paying qualified staff fairly and ensuring long-term retention

When fees do go up modestly, it’s often because of systemic limits on funding and fee flexibility—not because providers are trying to increase margins.

Working Toward Sustainable Child Care

BC’s child care system is evolving quickly, and the public investment is significant and appreciated. As the sector continues to grow and adapt, there are still challenges ahead—especially in ensuring sustainable, equitable funding for a wide variety of care models.

At Early Learning Society of Kamloops, we believe in:

  • Transparency with families
  • Advocating for fair and flexible funding models
  • Delivering consistent, compassionate care with community at its heart

Related links

Feeding Curiosity - The Role of Language of Food in Early Learning