report from think tank Policy Exchange claims that most mothers of children under 3 years of age would rather get financial help to care for their children at home rather than use subsidized childcare.

According to one of the authors of the report, Catherine Hakim, said that "One study showed that, in an ideal world, only one third of mothers in Britain would use any child care at all before their child's third birthday," according the Raisingkids website.

The "Little Britons" report recommended that stay-at-home-mothers should be given up to $120 a week per child to enable them to stay at home. The benefit would be paid for by cutting the childcare provision of the Working Tax Credit and scrapping the provision of free nursery places, electronic childcare vouchers, and the Sure Start maternity grant, the Independent reported.

Instead, a universal parental care allowance would be given to parents with children less than three years old.

The report criticized the government's early-years policy because it emphasizes getting mothers back to work by placing very their young children in nurseries, although most families would prefer their children to be cared for at home.

Natalie Evans, the head of research at Policy Exchange, was quoted by the Independent as saying: "A simple payment through the child benefit system... [would] allow women who want to work to do so, and give women the option to stay at home if that is what they believe is in their child's best interests."

The weekly allowance would be in line with parental allowances in other European countries. British parents still pay 70 percent of their childcare costs compared to the European average of 30 per cent, the Independent reported.