The Ministry of Education has warned the Government its subsidies for home-based early childhood education are paying for housework and informal child-minding that do not need to be subsidised.
It says the Government needs to reconsider what the $90 million a year it gives to the sector is paying for.
The ministry announced a review into home-based early childhood education earlier this year after criticism of the lack of qualified teachers in home-based services but has now published advice that gives other reasons for the review.
The paper says housework is increasingly becoming part of home-based early childhood education, au pair services are growing rapidly, and some organisations are actively recruiting informal arrangements and turning them into formal, government-subsidised childcare.
It says the review could end government funding for some types of home-based care.
The owner of a company that provides home-based early childhood education defends the cooking and cleaning done by her government-subsidised nannies.
Jenny Yule from PORSE says her company's home management goes hand in hand with play and learning for children and helps them understand the realities of life.
"Having a child standing at a kitchen bench to do some dishes is actually play and learning for children."
Ms Yule says the Government must be careful its review does not harm good early childhood services.
Early childhood groups say some organisations might be going too far.
But nanny and au pair companies told Radio New Zealand the only housework their staff do is related to the care of children such as cooking their meals and cleaning up after them. They say that is no different to the cleaning teachers have to do in early childhood centres.