Speaking at a debate hosted by Barnardo's, Balls stated the case for universal provision of Sure Start children's centres and the free entitlement to childcare for all three- and four-year-olds.
He criticised the Tories for failing to commit to protecting free childcare and rubbished plans to recognise marriage in the tax system, while criticising Liberal Democrat plans to reform tax credits and child benefit.
Addressing the room, Balls said: "It is so important to have universal pillars. If you ghettoise the welfare state for only the poorest families you would be giving them a second-class deal."
In response, Conservative skills secretary David Willets said: "I don't think we will ghettoise the welfare state. Universal provision of health visitors and careers advice is currently not working.
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