Working families will get thousands of pounds to ease the cost of childcare as part of a major tax-free childcare package that is to be rolled out in 2015.
The new law will affect upwards of 3,000 families in Cheltenham, and will mean a family with two children under 12-years-old could benefit by up to £4,000 a year.
Member of Parliament for Cheltenham, Martin Horwood said:
"This is something Liberal Democrats have fought for and are now delivering in Government. It helps children get the best start in life.
"It comes on top of 15 hours free weekly childcare for three and four year olds and the pupil premium to help the most disadvantaged children in our schools.”
Liberal Democrats in government have also introduced the pupil premium which is delivering hundreds of thousands of pounds to schools across Cheltenham with the least well-off kids.
Schools are able to spend this money in ways that they feel help their pupils best. Evidence shows some schools use it to hire extra staff, or reading and maths classes for children who need an extra hand .