Briefing Note
Prepared for: Ministry of Education and Child Care,
Government of British Columbia
Issue: Risk of losing existing rural childcare providers
Date prepared: November 13, 2024
Prepared by: Selkirk Innovates & Community Futures East
Kootenay
Purpose: To provide the Ministry with a greater understanding of the challenges that
existing rural childcare providers face in providing accessible and affordable childcare
services, within the current system and the risk of losing existing childcare spaces in rural
communities.
Background
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Policy changes have launched a transition of British Columbia’s childcare system
aimed at enhancing the available workforce and increasing the number of spaces
available. However, this period of transition has created a period of change and
instability, and interventions may be required to prevent negative unintended
consequences.
Beyond workforce and the creation of new spaces, a recent study identified that the
largest challenge providers face is insufficient funds to cover expenses, as while
costs constantly rise, funding doesn't always rise at the same rate. This is
exemplified by the perception of 30% of the surveyed childcare providers that they
will not be financially stable into the future.
As a result, there is a risk that current policy change may reduce the number of
overall spaces if providers cannot survive financially.

Discussion
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Childcare providers are subject to ongoing regulatory change, without the
accompanying clarity on the Ministry’s future intentions. This creates an atmosphere
of uncertainty, which exacerbates the risk and precarity that these providers already
face.
Childcare providers are unable to raise revenue to cover rising costs, due to the
inability to:
○ Accept more clients to increase revenue, due to lack of 1) space, 2) staff
○ Raise the price of service provision due to existing regulations within the
funding model
Some childcare providers may face difficulties navigating the existing system of
funding, due to underdeveloped business skills and lack of time availability. There
needs to be concerted attention, communication, and action to help existing
providers understand and navigate the changing environment.

Conclusion/Next steps:
Existing childcare providers are at serious risk of being forced to close. To mitigate this
potential risk, the Ministry should investigate a stop-gap program aimed at preventing
closures of existing childcare providers. This includes:
• Increase proactive plain language communication of changes directly to childcare
providers,
• Enhance short term stability and predictability by providing timelines,
• Communicate long term timeline of the changes which will enable childcare provision
to be stable and secure in the future, and
• Support providers 1:1 to navigate these short- and long-term changes – including
where flexibility exists for place specific needs.
This will result in better service provision for clients, as well as a more financially viable
future for the service providers.