'Delight' at childcare rule U-turn

In a letter to Ofsted head Christine Gilbert, he said he was "clear" that such situations "should not be a matter for regulation".

Mr Balls also asked Ofsted "with immediate effect" to treat all current childcare arrangements between friends where no financial reward exists as "beyond regulated".

Detective Constable Leanne Shepherd and her friend Detective Constable Lucy Jarrett shared a job at Thames Valley Police, and agreed that one would go to work while the other looked after their children.

That arrangement came to an end when Det Con Shepherd received a visit from an Ofsted inspector, thought to have been tipped off by a neighbour, who said what they were doing was illegal and had to end immediately.

Under existing rules, people who babysit for another person's child for more than two hours at a time, or on more than 14 days per year, should be registered.

This applies to any case where the parent receives a "reward" for the childcare - which can include money or free baby-sitting.

Det Con Jarrett, 32, of Buckingham, said of Mr Balls' announcement: "It's extremely good news. I'm delighted that common sense has won the day.

"I'm glad that now any other family in a similar situation won't have to worry that they could be breaking the law and have to go through what Leanne and I have had to go through. It's taken a long time. I think it was an unnecessary situation we were put in. It shouldn't have come to this."

Det Con Shepherd, also 32, of Milton Keynes, said: "It's exactly what we wanted. It's a common sense approach that we think should have been considered in the first place when they interfered with our lives." She said the move has come too late for them as their children's routines have already been unsettled.