The government is set to announce plans enabling parents to claw back 20 percent of childcare costs up to a limit of £1,200 from 2015, the BBC reported on Tuesday.Parents will receive the rebate on total annual costs of £6,000, the average price the government has calculated for a childcare place.
Around half of the funds will come from savings made by the abolition of the previous voucher system.
The rebate will only be available to those parents who are both employed and will apply to all parents earning up to £150,000.
Government sources told the BBC they were “jubilant” that an agreement had been reached after months of negotiations.
