A council has approved plans to provide supermarket vouchers during the school holidays to families receiving free school meals.
Cambridgeshire County Council's children and young people committee agreed on Tuesday to extend financial support in Cambridgeshire until September.
The authority has earmarked £2.7m to fund the scheme, with the new vouchers worth £10 per child per week during the holidays - previously they were worth £15.
Francesca Moriarty, founder of Little Buds in Brampton, said she believed "a lot of families are going to struggle" after September.
The decision comes after the government's Household Support Fund (HSF) ended, which helped low-income families with essential costs such as food and energy bills.
The authority had previously provided holiday vouchers through the HSF, but they were set to be withdrawn on 31 March.
Little Buds is a playgroup that helps children with special educational needs and disabilities (SEND).
Speaking to BBC Radio Cambridgeshire, Moriarty said that the extension was "good" but that a reduction in the voucher price was "not a lot of money for a family [as] the prices of everything are going up".
"I think it is a poor choice that it is not going to continue for longer," she said.
"It just feels like another knock for the SEND families in Cambridgeshire."
The Department for Work and Pensions (DWP) confirmed that £350,000 from new funding could be used to help pay for vouchers over the Easter holidays as part of the transition away from a previous funding model.
It was also agreed at a full council meeting on Tuesday that £1m would be reserved in the council's 2026-27 budget for investment.
An additional £1.3m was identified from the council's anti-poverty reserve.
Edna Murphy, chair of the children and young people committee at the authority, said: "While the funding from the Government's Household Support Fund has come to an end, I'm really pleased that by approving these transitional voucher amounts today we've been able to enable a smoother transition for the families affected."
She added that she was looking forward to proposals "for how the new programme of funding can be used".
Councillor Bryony Goodliffe, Labour's spokesperson on children and young people at the county council, told BBC Radio Cambridgeshire that the reduction would have "a huge impact".
"These are our families who are really struggling, and for me the impact on poverty for children is lifelong," she said.
"Next Tuesday the Labour group are bringing a motion that we would use some of the Crisis Resilience Fund to continue to pay for vouchers for those families really in need."