Childcare subsidy to rise to a maximum of £2,000
18 March 2014 Last updated at 20:40 GMT
As many as 1.9 million working families will get the chance to benefit from a childcare subsidy worth up to £2,000 per child under government plans.
The online scheme, affecting children up to the age of 12, will come in from September next year.
David Cameron said "squeezed" families would benefit and Nick Clegg added it would be "really simple" to use.
Nick Robinson reports.