Launching its manifesto today, the leader of the Conservative party David Cameron has announced he will extend the number of free hours from 15 to 30 hours a week, equivalent to £5,000 a year.
The new offer, open only to working families where all parents in the household work even if part-time (from eight hours a week), would come into effect from 2017. It would be paid for by reducing the tax relief on pension contributions for people earning more than £150,000 - a cost of £350m a year once fully implemented
The hourly funded rates paid to providers would be increased. The political party would consult on the 'appropriate level and design of the uplift'.
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