In a speech to the National Family and Parenting Institute last week, Mr Cameron said, 'Our policy review is looking at ways of making the support provided by the childcare tax credit simpler and much more user-friendly.
'We must look at the fact that a working man can get tax relief on his mobile phone bill, but a working woman can't get tax relief for someone who looks after her child. Tax relief on childcare for working parents would end this anomaly, and our policy review is investigating this option.'
Paul Goodman, shadow minister for childcare, said, 'There will be a policy review announcement next summer. We have six policy groups and childcare is part of the Social Justice Policy group which is chaired by Iain Duncan-Smith. They will be looking closely at the demand side of childcare.
Tax relief and transferable tax are both ways of distributing money, or rather not taking money from parents.'
Early years groups said they were pleased that Mr Cameron was addressing childcare issues, but expressed concern that he did not make clear whether a future Tory Government would support the national childcare strategy with financial backing.
Joint chief executive of the Daycare Trust, Alison Garnham, said, 'Tax relief on childcare costs will benefit those in work, but more needs to be done for less well-off families, including reform of the childcare tax credit.'
Mr Cameron also made reference to the way that informal family childcare is excluded from tax credits. However, Liz Bayram, chief executive of the National Childminding Association said, 'The suggestion that informal childcare arrangements may also be eligible for tax breaks may serve to undermine the improvements made to ensure that quality childcare is available for all parents.'