A report commissioned by the Government says low income parents are not getting the out-of-school care they need for their children because they don't know financial help is available.
The report by the Families Commission shows 40% of parents are unaware subsidies exist or that they could be eligible for them.
The report says just one in five children have the cost of their before-school or after-school programme subsidised.
Social Development Minister Paula Bennett says $28 million is available for subsidies and that could increase if there is the demand.
Ms Bennett says more work can be done to provide better information to parents at schools.
Recently the budget for service providers was cut by $500,000 to trim back administration costs.
Ms Bennett says the Government will also halve the bureaucracy involved in setting up programmes.