A child-care group in regional New South Wales was told it had been mistakenly receiving an annual grant intended as a transport subsidy, now the group says funding should continue.

The federal member for Page has taken up the plight of the Northern Rivers Family Day Care centre, saying it could not continue to serve the region without the yearly injection of $80,000.

Page MP Janelle Saffin says it is good that the centre has not been asked to pay back two decades worth of misallocated funds, but also believes the payments must keep coming.

“I've stepped in and am asking for that payment to continue,” Ms Saffin said, “forget about the past with it, because for family day care to operate, to go out and visit the homes, bring new homes and educators on board, they actually need to drive.”

It appears the day-care has already had to make cuts, with recent reports saying the Northern Rivers Family Day Care indicated fee increases would mean 300 fewer places will be available next year.