A survey indicates most early childhood centres affected by Government funding cuts next year will raise their fees by between $10 - $40 per week per child and sack teachers.
The Early Childhood Council survey follows a decision by the Government to lower funding rates for centres where more than 80% of teachers are qualified.
The Government expects to save more than $100 million per year by lowering its top subsidy rates.
But the Early Childhood Council says early childhood services cannot absorb the loss of funding.
Chief executive Peter Reynolds says the range of losses per centre as a result of the cuts is expected to be between $20,000 - $80,000 per year.