The free places, which will be offered to the 20 per cent most disadvantaged two-year-olds - 130,000 children - are part of Government plans to spend £7bn over four years on the Liberal Democrats' pledge of a 'pupil premium' while children are at school and a 'student premium' to help them while they are at university.
The free entitlement for disadvantaged two-year-olds was piloted under the former Labour Government, which aimed to extend the scheme to 15 per cent of the most disadvantaged two-year-olds in every local authority.
An evaluation of the pilot found that the scheme did not significantly improve children's cognitive or social development, but it did have a positive impact on language ability and the relationship between parents and children.
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