Shellharbour MP Anna Watson has called for an investigation into claims families who use Dapto Respite Centre are being pressured to sign up with other services.
The centre is one of five being reviewed by the state government, leaving workers and families who rely on the centre uncertain about its future.
Ms Watson said parents with children who used the centre had contacted her with concerns that officers from the Department of Family and Community Services were pressuring them to sign up to different service providers.
"The future of the respite centre, we have known for some time, is uncertain and there is widespread confusion over whether the centre will continue to operate or not," she said.
"I've had emails from parents and parents coming into my office saying that the officers are putting pressure on families to sign up with other disability service providers, that the centre can no long offer these sorts of services."
Ms Watson has written to NSW Minister for Disability Services and the Illawarra John Ajaka urging him to look into the claims and address the confusion over whether or not the centre will remain open following the review.
Mr Ajaka said the allegations of families being pressured by ageing, disability and homecare workers to move to different service providers would be investigated, but no reports had yet been received by his office or the department.
The services at the Dapto Respite Centre were still under review, with a decision expected shortly, Mr Ajaka said.