The UK has some of the world's most expensive childcare.
The government is under pressure to provide more help for parents.
Chancellor Jeremy Hunt said he wants to help reduce the cost of childcare when he sets out the government's tax and spending plans in Wednesday's Budget.
Families on universal credit are set to receive childcare support upfront, instead of having to claim it back.
The maximum amount people on universal credit can claim for childcare is also expected to increase. "Tens of thousands" of families could benefit, according to the Institute for Fiscal Studies (IFS) think tank.
However, Mr Hunt signalled that wider childcare support was unlikely.
