Parents will receive up to £1,200 a year towards their childcare costs from 2015, according to reports.
The pledge will reportedly only apply to families in which both parents work and earn less than £150,000 a year.
The payment is part of a £1.4 billion investment in childcare and will be partly funded by the abolition of childcare vouchers.
It has taken four months for a deal to be reached after the Government pledged to help with childcare costs in January.
More top news
Rain will spread into southern and central England but elsewhere will remain dry with warm sunny spells.
French mayors have been told they must not ban the 'Burkini' in their towns as a court ruling suspends the ban.
The audit aims to show how people's backgrounds can affect their health, education and employment.