The Federal Government has continued funding for a scheme that gives parents access to subsidised preschool hours.

Assistant Education Minister Sussan Ley announced this week that the government has renewed families’ certainty by not cutting the scheme.

An existing agreement on early childhood learning funds was due to lapse in December, but will now.

Under the continuing arrangements, State Governments choose specifically how the federal funds will be administered to best provide families with at least 15 hours of preschool access.

Some jurisdictions will go for more teachers, while others may need new preschools.

Ley said the extension would give the government time to decide the future of this and other policies, as it works on a far-reaching review into the childcare system.

Submissions to the Productivity Commission inquiry into childcare close on Friday, with a final report expected in late October.