According to reports, mothers could be given a flat rate tax break of £2,000 to encourage them back into work as part of coalition aims to support childcare provision.

The Daily Telegraph reported that ministers were close to agreeing a deal which would see all working women becoming entitled to claim a flat rate.

“The new measure – which will not be means tested – will replace the current complex £700 million voucher and allowances scheme and could be in force before the next general election,” sources told the Telegraph.

It added that the full details of the measure were expected to be revealed next week.

The childcare plans are among a series of proposals being set out by the government in its mid-term review.

These are also expected to include further details on changes to the state pension, caring for the elderly and the building of toll roads.

According to the paper, the childcare tax break will draw heavily on a report from the Commission on Childcare, which was set up by the Prime Minister last June and was charged with looking at “how to reduce the costs of childcare for working families and burdens on childcare providers”.

Recent surveys have highlighted the extreme cost that many families face for childcare to enable the second partner to return to work.