Gordon Brown could be ready to climb down over plans to scrap childcare vouchers of hundreds of thousands of working families, according to reports.

The Prime Minister sparked a rebellion among female Labour MPs - including nine former ministers - by announcing that the vouchers, worth up to £2,390 a year, would be scrapped.

Last night there were signs that the scheme could be reprieved for parents earning less than the threshold for the higher 40p rate of income tax, £43,875. Such a move would protect around three quarters of those benefiting from the vouchers.