Chancellor Alistair Darling has announced families with one and two-year-olds will get an extra £4 a week in child tax credits.
As part of today's Budget report, he announced the increase will apply from April 2012.
Childcare tax credit is a means-tested benefit, with an average payout of approximately £68 per week.
Darling said this is "extra money which will be paid for all children who need it, whether their parents are married, living together, or living apart".
Further reading/key links
Get the best rate for your child's savings: Child Trust Funds
See what you're entitled to: Five-Minute Benefit Check
Claim free childcare cash: Tax Credits