The organisation said the breadth of current government subsidies and benefits has made the system too complicated and is costing providers money in administration costs.
It would like to see the government expand its recently set-up online tax-free childcare accounts to include all elements of funding connected to childcare.
This would include money the Department for Education currently sends to local authorities to fund early entitlements for two-, three- and four-year-olds, as well as universal credit for childcare and tax-free credits for childcare.
Once entitlements are combined, parents would be able to use them how they choose, NDNA said.
NDNA chief executive Purnima Tanuku said it made sense to "consolidate everything into one account".
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