Low-income families will be able to access increased childcare support worth a total of £900 million from June 28.

The plan is designed to help more parents back into work to boost the economy.

The Department for Work and Pensions (DWP) will raise the amount parents can claim back monthly for their childcare costs on Universal Credit to £951 for one child and £1,630 for two or more children. This is a rise of 47% from the previous limits of £646 for one child or £1,108 for two or more children.

The Government will also help eligible parents cover the costs for the first month's childcare when they enter work or significantly increase their hours, removing one of the most significant barriers to parents working.

Those parents will receive up to 85% of their childcare costs back before their next month's bills are due - meaning they should have money to pay a month in advance going forward.

Mel Stride, secretary of state for work and pensions, said: "These changes will help thousands of parents progress their career without compromising the quality of the care that their children receive.

"By helping more parents to re-enter and progress in work, we will be able to cut inactivity and help grow the economy."

To boost the early years workforce and encourage more people to consider childcare as a valuable and rewarding career, the Department for Education is also launching a consultation in England today (May 31) to remove unnecessary burdens the childcare sector faces.

From September, the hourly rates paid to providers to deliver free childcare for two-year-olds will increase by 30% from an average rate of £6 to £8.

Claire Coutinho, minister for children, families and wellbeing, said: "Childcare shouldn't be a barrier to work, but the expense has previously meant parents have had to choose between working or looking after their child.

"We are supporting families with the largest ever expansion of free childcare, making sure that places will be available for parents who need them. This will save a working parent using 30 hours a week an average of £6,500."