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
One of the world richest and most influential philanthropists has told ITV News that governments failed to act fast enough over Ebola.
Chewing gum manufacturers must help pay the multimillion-pound bill for cleaning up discarded pieces, councils have said.
The first volunteers from the NHS depart for Sierra Leone today to join the continuing fight against Ebola.