As part of a one-year Spending Round announced by Chancellor Sajid Javid on Wednesday, the extra money will be provided to boost the hourly rate paid to providers of the 30 hours childcare offer.
But the Early Years Alliance, which represents 14,000 early years settings, said the money will plug just 10 per cent of the estimated £662m funding shortfall in the sector.
It is calling on early years professionals to write to their MPs urging them to highlight local circumstances to Whitehall civil servants.
Neil Leitch, chief executive of the Early Years Alliance, said: "[The] funding announcement was not the serious response to the early years funding crisis the sector had a right to expect.
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