There are concerns that pay parity funding in early childhood centres is being passed on to parents.

The opt-in system to set pay rates for teachers based on qualifications and experience is resulting in some centres raising fees to retain staff.

Some centres that opted out have closed or downsized, with some worried that government funding can't keep up with increasing wages.

Council President Simon Laube says that the model is unsustainable as parents are making up centres' revenues.

He says the smaller community providers are a much bigger worry as they don't have other revenue streams and are forced to either opt-in or close down.

LISTEN ABOVE

• Early Childhood Council on Govt reducing pay parity funding for ECE teachers
• Concern about fee increases as ECE pay parity funding falls short for some