Minister for Children Margaret Hodge has said the government's aim is to ensure all UK families are given access to affordable pre-school childcare.
Government spending on childcare has increased
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The government's childcare strategy is currently targeting services at those living in the areas which are among the poorest fifth of the country.
But by April 2004 all three and four-year-olds would have access to a free part-time place, Ms Hodge told the annual conference of the Daycare Trust charity on Tuesday.
However Daycare Trust's director Stephen Burke said that in spite of increased government spending on childcare many families still faced a "lottery".
"Access to childcare still depends on where families live, how much they earn and whether they are in work," Mr Burke said.
He called for extra money for childcare from the government's 2004 spending review to fund more affordable childcare places.
"We recognise this is a long-term venture but if we want to end child poverty we must be clear about where we want to be in 2020," he said.
Survey
Mr Burke's comments follow the publication of a report by the Daycare Trust which is critical of government policy of targeting only the poorest areas.
The report, Facing the Childcare Challenge, surveyed 400 parents and children living in places outside the targeted areas.
It revealed a severe shortage of nursery places with up to seven children competing for every available space in the Sefton region of Merseyside in the northwest of England.
Nursery care in London and the South East cost more than a quarter more than national average, the report said, meaning parents on a low income would never earn enough to pay the full market price.
"In order to reach all parents and children, and in order for the government to meet its child poverty targets, these services need to be rolled out beyond the 20% most disadvantaged areas," the report concluded.