Married women will be directly targeted in the Budget with large increase in tax allowances, as well as a drive to increase the number of available creche places. The Government's finances are in such good shape that the Government has considerable scope to address this area.

The final Budget plans, which will be presented to Cabinet this morning, include proposals to substantially increase the PAYE tax credit as well as the main personal tax credit and provide thousands of new childcare places.

The PAYE credit - currently £1,000 - is likely to rise by at least £600 in a move which will increase the attractiveness of working for married women. This credit is paid to anyone on the PAYE system and - unlike the main personal tax credit - it thus benefits anyone entering the workforce no matter what credits are already being claimed by a spouse already in employment.

However, there will not be any new tax allowances or credits aimed specifically at childcare, as had been suggested by a working group under Partnership 2000.

According to Mr Eoin Fahy, chief economist at Ulster Bank, giving a tax allowance to those with children would be of no benefit to non-taxpayers with children - and there would also be a risk that the amount would simply be passed on in higher childcare prices charged by creches.

The most important target is to increase the supply of childcare, he said.

"This means increasing capital allowances for childcare provision, as well as reducing or eliminating any benefit in kind for workplace childcare. Employers should also be given a tax allowance to provide this facility."