Labour on childcare plans: 'Gains do not make up for losses'

As many as 1.9 million working families could benefit from a tax-free childcare allowance worth up to £2,000 per child from 2015-6, under revised plans.

The new scheme, first outlined last year, will be brought in sooner and the maximum parents will be able to claim will rise by £800.

Shadow childcare minister Lucy Powell said any new investment in childcare was welcome, but suggested that families had lost more over the last few years than they stood to gain.