The Federal government will set aside $1.7billion in next week’s budget to help slash the cost of childcare.

Families will be able to receive subsidies of up to 95 per cent if they have more than one child in care in a plan to help parents work extra days.

Although opposition leader Anthony Albanese argues the government’s plan is not generous enough the government says the policy is well targeted and affordable.

Federal Minister for Education and Youth Alan Tudge joined 6PR’s Perth Live program to tell Oliver Peterson the package is carefully designed to encourage people to work extra days.

When asked by Oliver Peterson why it won’t come into effect until July 2022, Mr Tudge said they’re taking a conservative approach.

“That’s the safest time to implement it from, purely to enable the tech to be put in place. If we can start it earlier we will.”

Listen to the full chat below: