The Conservatives have promised a 50-a-week payment to parents eligible for working tax credit, regardless of the childcare they use. They say the scheme, which would begin in 2008/09, would benefit around 250,000 more families.
Childcare benefits are currently only available to families who use registered providers.
Shadow children's minister Tim Loughton said parents should be able to choose between different types of childcare, including informal care by a family member. "Everything we have put forward gives that choice to parents," he said.
But the National Day Nurseries Association warned that informal care was impossible to regulate. "The current system has been set up to protect children and to ensure their safety in childcare," said the association's chief executive Purnima Tanuku.
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