The Government has confirmed some parents will pay more for their childcare, despite a pre-election promise that would not happen.
Currently any 3 or 4-year old in early education receives 20 hours per week of subsidised care.
Before the election, National said: "we wanted to assure parents that our policy was not going to mean an increase in fees for them".
Radio New Zealand's Parliamentary chief reporter says the party is now backing away from that statement.
On Monday, Prime Minister John Key confirmed some parents will pay more after the Budget.
Labour says the cost of the change to some families will far outweigh any benefit gained from tax cuts.
Party leader Phil Goff says it appears the policy will be means tested.
The Government says the full details will be revealed in the Budget on Thursday.