As part of the Government's ten-year childcare strategy, the DfES and the London Development Agency (LDA) are working together on a childcare affordability programme to support up to 10,000 childcare places, targeted at the most disadvantaged areas of the capital to help parents on low incomes to stay in or return to work.
Childcare costs in the capital are far higher than in the rest of the country and in inner London - an area with a population comparable to Wales - 54 per cent of children live in poverty.
The new grant will go direct to providers who are offering full daycare for children aged from nought to five, and who will be contracted to provide affordable places. The programme will be rolled out across all the London boroughs from 2005 to 2008. The amount of funding available has not been specified, but it will come from the LDA and will be partially met through Sure Start from 2006.
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