The Prime Minister and Deputy Prime Minister visited a nursery to announce a tax-free childcare scheme.

David Cameron discussed his plans with parents this morning at Wandsworth Day Nursery in Northside, near Wandsworth Common, ahead of tomorrow's Budget.

Mr Cameron said the scheme, worth up to £1,200 per child, is set to be phased in from autumn 2015.

The pledge will apply to families where both parents work and earn less than £150,000 a year, as well as single parents who work, with the funding aiming to give "some tax relief on childcare".

After the talk they were given a tour of the nursery, met staff and played ball with children. 

Kaye Stuart, nursery manager, said: “Our parents relished the opportunity to talk to them about childcare and today’s announcement and the children enjoyed playing football with them in garden. 

"It was also very rewarding to hear David Cameron compliment the nursery and it’s 'big and spacious’ garden.”

Mr Cameron said: "Too many families find paying for childcare tough and are often stopped from working the hours they’d like.

"That is why we are introducing tax free-childcare, saving a typical family with two children up to £2,400 a year.

"This is a boost direct to the pockets of hard-working families in what will be one of the biggest measures ever introduced to help parents with childcare costs."

Mr Clegg, who lives in Putney, added: "The rising cost of childcare is one of the biggest challenges parents face and it means many mums and dads simply can’t afford to work.

"This not only hurts them financially, but is bad for the economy too. This announcement of a £1bn investment in childcare will make sure it pays to work."