Labor has accused the government of not investing in childcare in the budget and believe now is the time to act, given women have been hit hard by job losses during the pandemic.

That financial impact on families has meant children have been going to childcare less often.

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Big Fat Smile executive officer Jenni Hutchins said providing children with access to early learning and care was "really important" because it set them up for life.

"During COVID, we have seen a 'pink recession' for women, who are invaluable to the economy and workforce," she said.

"We have seen our children drop days because more women than men have lost jobs.

"We need to build a system that enables women's participation in the workforce."

Ms Hutchins praised the government for "protecting" the childcare sector, however believes more needs to be done.

"We nearly closed our doors, and we provide services to nearly 4000 children, who are mainly in the Illawarra," she said.

"The government has been amazing in providing free childcare.

"We are starting to see a drop-off of families accessing early learning and care because of JobKeeper payment reductions.

"More women are reducing their hours in the workforce which means children are having their hours reduced in childcare.

"The government needs to look at the mechanism and systems required for the new COVID world that enable women to work and to access early learning and care."

Cunningham MP Sharon Bird said when planning for the long term, the government should be addressing childcare specifically through availability and affordability.

Read more: The challenges of dealing with life in the wake of COVID-19

On Thursday, Labor leader Anthony Albanese announced that a Labor government would introduce the Working Family Childcare Boost to cut childcare fees and put more money into the pockets of working families.

Under this plan, Labor would scrap the $10,560 childcare subsidy cap, lift the maximum childcare subsidy rate to 90 per cent, increase childcare subsidy rates and taper them for every family earning less than $530,000.

"Labor wants to work towards a universal childcare right, like Medicare and the NDIS, so all families can access affordable childcare," Ms Bird said.

Whitlam MP Stephen Jones said fixing one of the biggest obstacles to women's participation in the workforce - affordable childcare - was good for the economy and families.

"If families want to move from part-time to full-time work, then we need to ensure the cost of childcare is not a barrier from them doing that," he said.

"The cost of childcare is on average 20 per cent of household income.

"Labor's plan is not a welfare measure. It is an economic measure.

"Childcare should be available to all families as a matter of right, not only for those who can afford it.

"It is about equality in the economy and the community."

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