The Macquarie Valley Family Day Care Service (MVFDC) found out earlier this year $120,000 will be cut from their funding following the 2014/2015 budget announcements.

Narromine Shire Council has reported the government will terminate the funding to 80 per cent of the family day care services nationally from June 30, 2015.

"The funding which is being extensively cut is paid to the coordination units which administer the family day care schemes on behalf of the educators and the government," the Council report stated.

MVFDC Nominated Supervisor Julie Gleeson has viewed the decision as a betrayal of trust from the federal member Mark Coulton.

"When (Mr Coulton) brought Sussan Ley (Assistant Minister for Education) to meet with the MVFDC prior to the election, he gave no indication that if we voted for (the Coalition) party, they would wipe out our family day care service in Narromine, Trangie and Warren by terminating Community Support Program (CSP) Funding which enabled our service to operate," she said.

"We see this as a betrayal of trust."

Mrs Gleeson said the termination of funding would impact on the entire service and the onus of making up the funding would fall on the parents.

"If the MVFDC doesn't receive CSP funding, 18 educators will be come unemployed. Working parents who rely on the MVFDC to care for their children will have nowhere to leave them," Mrs Gleeson said.

"Parents can't afford to pay the additional 71 cents per hour or on average or $750 per year."

The federal government has established new criteria to qualify for the funding and the Day Care is concerned this rules them out.

These criteria include being located in a rural area, be the only service operating from that location and be able to prove there is an unmet demand for child care in the areas you operate in.

"We understand from the Australian government's Department of Education CSP self-assessment checklist for family day care services that unless we can prove unmet demand for child care, there is no point in applying for CSP funding. This is ludicrous, if we shut down the service we immediately have unmet demand for 250 children," Mrs Gleeson said.

"Every other early childhood service in Narromine, Trangie and Warren, the area we cover, receives funding from the Commonwealth or state governments. Why should we be discriminated against?"

Federal Member for Parkes Mark Coulton said the program had been misused.

"The CSP was designed to help services in regional, remote and disadvantaged communities where child care was unviable. Unfortunately under the previous government, we saw a large proportion of the funding being directed to services in metropolitan areas. The number of new Family Day Care Services in metro areas has grown by 71 per cent since 2011," he said.

"These changes to the original intent of the program have resulted in massive budget blowouts, almost $200 million in three years."

In his reply to the MVFDC service, Mr Coulton made no promise of helping the service get the CSP funding again.

"I have spoken with the Assistant Minister for Education, Sussan Ley, and the Minister has reiterated that the government is working with the sector, including the Macquarie Valley Family Day Care, to help them transition over the next 12 months," he said.

He did promise child care fee assistance would not be affected.

"I will continue to work with the MVFDC and with the Minister. Parents using Family Day Care can be assured that their child care fee assistance is not being cut," he said.

In the meantime the staff at MVFDC and Day Care centres across the country are working together to ask the government to rethink this budget cut.

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