In its response to a Department of Children, Schools and Families consultation into the proposals the charity says many nurseries are already operating on the “margins of profitability or at a loss”.
The proposals include a rise to £450 a year for daycare providers. By 2010 out of school providers will have to pay £400 and childminders £100.
Anne Longfield, 4Children chief executive, said: "High quality child care doesn't come cheap and providers need to fund staff training and qualifications as well as core operational costs.”
In submitting its response 4Children consulted widely with nurseries. Among those to join 4Children in its criticism was Diane Daniels, manager of the Sheerness Neighbourhood Nursery in Kent.
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