Island families will receive ?350 a year towards their pre-school fees from September.
Education chiefs have this afternoon (Tuesday) revealed a credit scheme they plan to introduce when state run facilities are transferred into private ownership.
Poorer families will also receive an extra ?800 supplement towards the cost.
The free pre-school units currently operated by the Department of Education and Children cater for just over half of eligible children in the Island.
Department chief executive Stuart Dobson says the proposals will make free pre-school available to all, although won't cover the cost of attending five days a week.
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