A Hunter dance school says cutbacks to the NSW Active Kids voucher program will be "devastating" for families.
The Active Kids program provided families with two $100 vouchers per year for each school-aged child to pay for sport costs.
However the NSW government rolled back the program to a $50 voucher on July 1, and from next year only families on Tax Benefit A will be eligible. The new voucher will be $50 and issued twice a year.
"It's going to be devastating for our families," Newcastle Contemporary Dance Academy director Cheryl Bailey said.
"Families rely on them now. About 100 of our families would use the vouchers."
Ms Bailey said the dance school was fortunate in that it could accept Creative Kids and Active Kids vouchers, meaning they will potentially be more affected by the change.
"We're not like netball and where you're there three months and done," she said. "We run four terms a year.
"So we'll know in the next two or three weeks how many people will use the voucher for this term."
Ms Bailey said she had received little information from the government about the change.
She said even though some people will still be eligible for the means-tested program, families on dual incomes were still doing it tough.
"Some of our families have said 'we don't know how we're going to do it'," Ms Bailey said.
"We've got a show this term now coming up. So I'm expecting some of them will push through to the production and then beginning of term four will be where we'll notice the most whether those kids can afford to come back."
Lambton Juniors Soccer Club president and 2023 Port Stephens Liberal state election candidate Nathan Errington said the decision would put pressure on sporting clubs.
"We always try our best to keep registration fees as affordable as possible, but without this vital government support, families are going to miss out," he said.
"Around 300 participants in Lambton Juniors have used these vouchers since they were introduced, and many parents have told me that they just won't be able to afford to register."
Newcastle Liberal councillor Callum Pull said pool users raised concerns about the program cuts at a community meeting at Beresfield Pool on June 6.
"Pool users know the value of these vouchers," he said. "They have seen it get kids in the pool and learn to swim.
"Without this vital entry support these swimming programs will be gutted, and these kids will be missing out on learning a valuable life skill."
