So far the Government has resisted going down this route and says subsidies to childcare providers may be considered as part of a series of pilot projects in the poorest areas of London.
But Camden Council's executive member for education, councillor Nick Smith, said rises in tax credits must also be considered.
The Government announced the childcare element of working tax credit would rise to a maximum of 80 per cent of costs. Camden has campaigned for 85 per cent.
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