Liz Bayram, chief executive of the Professional Association for Childcare and Early Years (PACEY), said childminders are key to delivering 30 hours free childcare but bureacratic barriers are forcing many to leave the sector.
Figures published last week showed the number of childminders registered with Ofsted have plummeted 25 per cent since 2012.
Bayram said: "Childminders need more help with start-up costs and a removal of the key barriers preventing them from delivering funded places.
"This means a higher hourly rate; an end to delayed payments and burdensome red tape from local authorities; and a removal on the ban on childminders providing funded places to related children.
"These are all factors contributing to a decline in childminder morale and sustainability that government could resolve."
Bayram said a national campaign promoting childminding and emphasising that parents can use their entitlment to 30 hours free childcare with childminders would be an important step in reversing the decline in registrations.
She added: "Childminders provide a high quality, flexible early education service. They are particularly good at promoting young children's language development and behavioural self-regulation.
"Yet children and families are losing out on this unique form of childcare."
