For the first time, families who work less than 16 hours a week will be able to claim support for up to 70 per cent of their childcare costs - up to £123 a week for one child, or £210 a week for two children - when the Universal Credit is introduced in 2013.
The Government said that around 80,000 families would benefit from an extra £300m invested into the Universal Credit on top of £2 billion already in the system.
Ministers said that the plan would mean that, for example, a lone parent working ten hours a week on the minimum wage would be around £40 a week better off in work than on benefits, because under Universal Credit they would be eligible for support with childcare costs.
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