New tax-free childcare measures worth up to £2,000 a year per child have been welcomed by campaigners, amid warnings that more help may be needed for the poorest families.

Under the Childcare Payments Bill, included in the Queen’s Speech, a new scheme is due to be introduced to give working families basic rate tax relief on money spent on childcare.

The legislation will entitle anyone who is responsible for a child to gain support with the cost of nursery, a childminder or other types of childcare.

For every £8 a parent pays for childcare, the Government will contribute £2, according to Treasury information, with support capped at £2,000 per child per year.

The scheme is set to be introduced in autumn next year, with families who have children under 12 eligible within the first year, the Government said, adding that in the first 12 months, around 1.9 million working families are expected to benefit.

Liz Bayram, chief executive of PACEY (the Professional Association for Childcare and Early Years) said: “We welcome the Government’s commitment to provide more financial support for parents through the tax-free childcare offer.

“However, we believe childcare funding needs a complete overhaul. While this is helpful news, it will not make a difference to the most disadvantaged families.”

To be eligible for the support a parent and their partner, if they have one, must be in paid work, earning more than they would receive for working eight hours a week at the national minimum wage.

The parent’s income and that of their partner should not exceed £150,000 and they should not be claiming Universal Credit, or other support for childcare.

Chris Goulden, head of poverty research at the Joseph Rowntree Foundation, said: “The Government has made important progress towards extending childcare support to all families who will be eventually moved on to Universal Credit. But this concession contains a major sting in the tail, with the extra costs expected to be borne by savings elsewhere in the welfare budget.

“Childcare is essential for working families. Not only can good-quality early years education and care help support child development, but affordable childcare makes work pay for those on low incomes and helps to lift more families out of poverty.

“Bringing down the cost of childcare would have a significant impact on the ability of low-income households to work. But this help should not be funded by cuts in other areas. This is more important than subsidising childcare for very high-earning families: most of the extra support will be going to families with higher incomes, including households where both parents are earning just below the additional rate tax threshold, set at £150,000.”

Richard Dunbar, Councillor for Thornton & Allerton (Labour), who has worked on projects tacking child poverty, said: “Affordable childcare and having a system that doesn’t punish parents who decide to work is key to getting more people out of poverty. If you look at the childcare payments bill in more depth, you realise it won’t make a difference to most disadvantaged families in Bradford and savings will have to be made elsewhere in the welfare budget in order to finance the programme.

“Many people in Bradford are dealing with the harsh realities of the cost of living crisis on a daily basis and throughout the life of this Parliament the Tory-led Government has been cutting financial support and services that provide a lifeline to families from all over our district.

“Across the country, David Cameron is closing down Sure Start centres which reached millions and offered parenting supporting, childcare for children, job training for adults and a wide spectrum of information, advice and guidance.

“When families are relying on foodbanks and struggling to pay their household bills as a result of Government reforms, it is hard to see how this bill will help those who need the most help.”

Nicola Lamond from parenting website Netmums said: “With childcare costs increasing at three times the rate of inflation, any support to help hard-pressed working parents meet the cost of childcare is to be welcomed.

“This is the first scheme to assist self-employed mums and dads and those whose employers aren’t signed up to the current salary sacrifice scheme. It’s also easy to administer, as it doesn’t rely on employers agreeing to take part.

“However, with some Bradford nurseries costing up to £170 a week for a single child, the £2,000 limit won’t even pay for 12 weeks care.

“While the tax break will certainly help, it won’t stretch far enough for many local working families. Recent studies on Netmums found working mums pay an average of a third of their income on childcare, so as well as this tax support, we have to find ways to make childcare more affordable overall.”