Labour would force big banks to pay for an increase in free childcare if elected, leader Ed Miliband said yesterday.

He said the party would impose a levy on monster banking profits to help ease the cost of living on families by extending free childcare for three and four-year-olds from 15 to 20 hours a week.

The Labour leader (right) said the plans would save families about £1,500 a year.

"Childcare costs are just going up and up and up and parents are really struggling to cope," he said.

"Seven out of 10 mums are saying 'I want to go back to work but I can't because of the cost of childcare'.

"The banks are actually making very big profits and I think they can afford a bit more to help families."

Mr Miliband said the cost of a nursery place has risen 30 per cent since the election, nearly five times more than wages.

And he said he wanted to make sure that primary school children had access to before and after-school care as well.

The Labour leader said Con-Dems had broken election pledges and closed more than 500 Sure Start centres, despite government claims the number was 45.

Single parents charity Gingerbread chief executive Fiona Weir welcomed the proposals but said they must go further.

She said: "Single parents regularly tell us that finding decent affordable childcare is their biggest barrier to work. The priority must be to provide support for 85 per cent of childcare costs for all working parents under universal credit."

TUC general secretary Frances O'Grady said "astronomical" childcare costs meant "for many families work simply does not pay.

"The closure of many Sure Start centres, combined with the reduction in support for childcare through tax credits, make an already bad situation even worse," she said.

"Any move to end this childcare nightmare will no doubt prove very popular with hard-pressed families across the country."

The Department for Education said it was taking action to tackle the cost and quality of childcare.