The report, Childcare and the Recession, states that redundancies caused by the closure of a large local employer could create instability in settings as parents take their children out of childcare.
Emma Knights, joint chief executive of the Daycare Trust, said: "We're looking for a contingency fund that authorities could draw money from if a large organisation closes or there are large-scale redundancies."
The report says the childcare market is currently holding up. But it says: "If the recession deepens, causing rises in unemployment, then childcare occupancy rates will fall and more settings will close, threatening the government's ability to deliver universal childcare entitlement to parents."
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