Labour is drawing up plans for a major expansion of free childcare that could be worth around £6billion a year.
The party is considering offering parents more free hours as a key pledge ahead of the next general election, multiple sources told the Mirror.
Senior figures believe boosting childcare will win over middle-income swing voters, and grow the economy by helping more parents into work.
One idea being looked at is to make 30 hours’ free childcare per week universal for parents of all two, three and four-year-olds.
Currently three- and four-year-olds only get 30 hours if their parents work at least 16 hours a week. Otherwise, they get 15 hours.
Two-year-olds currently only get 15 hours’ childcare if they are from a low-income family.
No decisions have been made, but the Mirror understands Labour figures are keen to make entitlement to free hours more generous.
The party is closely studying a report by the IPPR think tank, which made the recommendation in a report earlier this month.
The IPPR said a universal ‘free hours’ offer could cost £2.9bn extra a year - but some of that would go back to the Treasury as more parents pay tax and leave the benefit system.
Labour similarly pledged 30 hours’ free childcare for all two, three and four-year-olds in its 2019 election manifesto.
The party is also looking at boosting the funding nurseries receive from the government to provide ‘free’ hours, the Mirror understands.
Childcare settings get as little as £4.61 per hour, which they say is so low, they hike up the cost for paying parents to subsidise the gap.
The IPPR suggests raising government funding to the full rates of council-run nurseries could cost between £1.9bn and £2.4bn extra per year.
In total the IPPR report suggested measures totalling more than £18bn a year to deliver a “childcare guarantee”.
While no price tag has been agreed, the Mirror understands senior Labour figures have discussed a potential cost of £6billion a year.
Keir Starmer has already said childcare would be on his “pledge card” for the next election, while Shadow Chancellor Rachel Reeves has said it is the “biggest barrier to women’s productivity”.
A Labour source suggested a recent fall in the birth rate would help fund the policy.
Only 135,000 eligible two-year-olds were registered in 2022 - down from 154,000 in 2018, according to the IPPR.
This would mean government cash can stretch further - and schools and childcare centres have more room in their buildings to expand.
Under one idea that is being discussed, disused classrooms would be used for early-years care.
Labour is thought to be prioritising childcare ahead of calls, including from the Mirror, to expand free school lunches to more primary-age kids.
But the party has already pledged in September that it will roll out breakfast clubs for all of England’s primary schools.
Other suggestions in the IPPR report include expanding free hours to under-twos, which could cost between £900m and £1.4bn a year.
Expanding free hours for three- and four-year-olds from 38 weeks to 48 weeks a year would cost another £1.3bn.
Parents are grappling with spiralling costs, and childcare payments to people on Universal Credit which have not been raised since 2016.
The average cost of sending a child under two to nursery full-time has hit £263 a week, according to the NCT.
Shadow Education Secretary Bridget Phillipson has already vowed to “completely reimagine the childcare system” if Labour win the next election.
A Labour source said: “As a strong reformer, Bridget wants to reshape totally how people think about childcare in this country.
“Under Labour childcare will both give children the best start in life and give parents choices in the workplace. We won't accept an 'either-or’.”
