An extension to childcare funding could benefit children's education.

The Government's announced the income threshold to access the childcare subsidy scheme will be raised from April - making 54 percent of the country's families eligible.

The Working for Families family tax credit will also rise by nine-dollars a week for the eldest child, and seven-dollars for subsequent children.

Save the Children Research Director Jacqui Southey told Kate Hawkesby that it's incredibly necessary.

She says those facing steep living costs can re-direct money going on childcare to other household essentials.

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