Iain Duncan Smith, the work and pensions secretary had said he wants childcare costs to be reviewed, to bring costs down to low income families.
From 2013 parents who work less than 16 hours a week will be eligible for childcare support.
According to Save the Children and Daycare Trust charities, the UK childcare costs are amongst the highest in the world. The charities suggest that parents spent more than a third of their incomes on childcare.
At present, families who qualify for help with childcare costs can get credits to cover up to 70% of the weekly costs, capped at £122.50 for one child and £210 for two, but only if they work more than 16 hours a week.
Before April, families had been able to recover up to 80% of costs, but it was reduced in the spending review.
There are plans to end the 16-hour-a-week minimum once the universal credit - a single payment consolidating existing in-work and out-of-work benefits including child tax credit - is introduced in 2013.
Mr Duncan Smith has started discussions with childcare providers such as nurseries and playgroups about selling more childcare by the hour rather than in blocks. This is the case in some European countries. This may help in bringing childcare costs down.
Mr Duncan Smith believes the current system locks childcare providers into a certain way of working. He stated that ending the minimum hours requirement could have a "dramatic effect".