Cameron on childcare: 'This is about helping families'
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.
Labour said the assistance - announced ahead of Wednesday's Budget - would be "too little, too late".
But Prime Minister David Cameron said that the tax relief would be a "huge help".
"This is about helping families as part of our long term economic plan," he added.