One of the most anticipated measures in the Budget was the plan to help working parents with the costs of childcare, up to £2000 per year, per child.
The new scheme will help most families where both parents work, including for the first time self-employed and part-time workers (up to 8 hours a week). It will also help single parents who work.
The proposal, which includes all children under 12, is a significant upgrade from the £1,200 per child ministers had previously proposed.
Around 1.9 million families could benefit from the plans, which will be introduced in the autumn of 2015.
"It won't be enough, but every little helps"
At the Hexham Children's Centre, families told ITV Tyne Tees that the price of nursery places and childminding was one of the biggest barriers to them returning to work.
"To put three children into nursery would cost over £120 a day, which is a lot of money - more than you can earn around here in a normal job," said Sharon Soulsby. She gave up her job because the cost of childcare was too much. She is now retraining at college to find a job that fits around her children's school days.
"Don't get me wrong, I'd love to be at home with my kids, but I want to go to work to show that you need to work, to earn things," she said.
Keith Bell has four children and is a single parent. His youngest son currently qualifies for 15 hours of free childcare, which he says is not enough as he is trying to start a business.
"I'm naturally cynical about politics," he said. "I wouldn't like nursery providers to look at this thinking they can put the rates up now.
"So I don't know. It's never going to be enough really, it's never going to fund anything 100% - but every little bit helps."