Childcare support for low-income parents will be increased in the Chancellor’s Budget next week.
Jeremy Hunt is under pressure to reform the system after childcare was shown to be among the most expensive in the world.
MPs on the Commons education committee heard a warning that there will be only 1,000 childminders left in England by 2035 under the current system.
Labour yesterday laid out a £18billion reform plan, but were criticised for failing to reveal how it would be funded.
Ahead of next Wednesday’s Budget, Treasury sources have revealed the Chancellor is looking to increase how much parents on Universal Credit can claim back for childcare.