Details of a planned £1,200 childcare tax break for families is expected to be unveiled in next week's Budget, according to Sky sources.
Help with the expense of childcare is one of the things people have been pressing for said Sky's Political Correspondent Anushka Asthana, and is part of the Government's drive to help families as well as business.
Figures recently revealed the cost to families for part-time childcare is more than the monthly mortgage repayment.
It follows a consultation on tax breaks for families, and will replace the current childcare voucher system which means everybody who is working, including the self-employed, will be able to qualify for it.
The current voucher system depends on whether an employer agreed to it, and at the moment only 5% do.
It came as Chancellor George Osborne warned of more "difficult decisions" to come in Wednesday's Budget.
Writing in The Sun on Sunday, he confirmed he will use his Commons statement to outline details of the Government's promised cap on welfare payments.
And he underlined the need to "not waver" from plans to tackle the budget deficit and deal with Britain's debts.
He wrote: "That plan has delivered economic stability and low mortgage rates for families and it has laid the foundations for economic recovery."
But the deficit remained too high, which was why workers in the public sector faced another year of pay restraint and welfare spending would be capped from 2015.
"None of these decisions are easy, but the alternatives are worse," he wrote.
In a sideswipe at his opponents, Mr Osborne said: "Ed Balls and Ed Miliband haven't learned any lessons from the last time they crashed the British economy.
"The question is simple: Why would you give the keys back to the people who crashed the car?"
But Mr Balls, Labour's Shadow Chancellor, accused Mr Osborne of being "out of touch", and argued ordinary people had yet to see any improvement in their standard of living.
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