The Genesis project was set up to help disadvantaged parents in the Rhondda Cynon Taf region of Wales back into work and training, by providing free childcare, guidance and counselling.
It is set to be rolled out across the country following a successful bid to the European Social Fund on behalf of the Welsh Assembly, it was confirmed this week.
The scheme, which was launched more than two years ago, avoids some of the pitfalls of Working Tax Credits by making direct payments to childcare providers.
Project founder Carol Daniel, head of early years and childcare services at Rhondda Cynon Taf County Borough Council, said: "There is a strong feeling among people like myself and childcare providers that the current system is flawed.
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