The Uniting Church is pulling out of four childcare centres in Gippsland, calling for a review of childcare funding.
Childcare centres at Foster, Cowes, Lakes Entrance and Mirboo North will be closed unless another operator takes over.
Together they employ 45 people and look after about 600 families.
Uniting Care Gippsland says they have been running the centres at a loss for years.
The organisation’s acting chief executive officer Tracey Gibson says costs have increased because of State Government requirements to have a higher ratio of staff to children.
She supports that change, but says childcare funding comes from the Federal Government and it has not increased with the new requirements.
“It’s time for a discussion about the funding models that are available,” she said.
She says Uniting Care Gippsland will not be the last organisation to withdraw from childcare.