Tory ministers risk an angry backlash over plans for a climbdown to help Universal Credit parents struggling with nursery fees.
It's understood ministers are poised to double the time parents on UC have to claim childcare costs back from the DWP, from one month to two.
The longer 'reporting' time would make the system more flexible for claimants, who Citizens Advice warned faced desperation if they missed the deadline.
But it's understood today's announcement was due to stop short of scrapping a key requirement for UC claimants to pay for childcare up-front - which has forced parents to sell cars or cut back on essentials.
A group representing 14,000 childcare settings warned any changes will not be enough if Tory chiefs fail to scrap up-front payments.
Neil Leitch, chief executive of the Early Years Alliance, told the Mirror: "Asking parents claiming Universal Credit to pay for childcare up-front before reimbursing them does not work.
"This is what parents and providers most want to see change.
"At the moment providers are forced to choose between allowing parents to pay in arrears or turning children away.
"We’ve heard how those who have let parents build up debt in order to access a childcare place are sometimes left unpaid as parents struggle to keep on top of other Universal Credit repayments and outgoings.
"Childcare should not be a luxury for families, particularly those from disadvantaged backgrounds whose children often benefit the most from early education."
Department for Work and Pensions ministers are set to make a formal announcement over childcare costs later today.
It is set to be the first change in policy under new DWP Secretary Therese Coffey, who took office yesterday after Amber Rudd's bombshell resignation.
Under the six-in-one benefit, parents wait up to five weeks for their first payment and have to take out an advance if they want to cover the gap.
But the way the nursery industry works means they have to pay childcare costs, including deposits and fees, up-front first.
Last year the Commons Treasury Committee branded this a "fundamental design flaw" that "should be rectified as a matter of urgency".
And Save The Children - despite half of low-income families having no savings.
Katie Till, Senior Government Relations Adviser at Save the Children, said today: "We welcome any changes to Universal Credit which will make things easier for families.
"But if the government really wants to help parents, it must address the fundamental design flaw with childcare under Universal Credit – that parents must pay their childcare bills before getting the support they are entitled to.
"With an average upfront cost of £1,000 per month, parents tell us they are having to resort to desperate measures to pay these upfront costs - cutting back on essentials, falling behind on bills or getting into debt.
"One mother told us she had sold her car to be able to cover her childcare bill.
"It simply isn’t right that working parents are being penalised in this way."
The Department for Work and Pensions did not comment ahead of the formal announcement later today.
Previously a government spokesman said: "Under Universal Credit, working parents can claim back up to 85% of eligible childcare costs, compared to 70% of costs covered under the previous legacy system.
"This is the highest level of support ever. And if someone has accepted an offer of paid work, they are eligible to be paid these costs for the month prior to starting work.
"This generous provision has been widely welcomed by stakeholders and is available in addition to an entitlement of up to 30 hours of free childcare."
