Ulla Gray juggles her part-time job doing the accounts in a GP’s surgery with looking after her grandsons, Milo and Archie, to help out her daughter-in-law, who works as a market researcher.

Caring for the boys, aged 18 months and 3, is hard work for the 65-year-old. Although she is more than happy to help her family, she does not understand why her efforts not acknowledged in the tax system.

"I am very happy to slot in and help when I can. I have the sort of job where it is easy to change arrangements if necessary. But it is very unfair that this work is not recognised outside the family," she said.

"Some of my colleagues at the GPs surgery claim the childcare allowance [from tax credits] to pay for nursery places or childminders. Grannies are providing the same service, and often a far more flexible service especially when the children are older and at school," she told The Times.

Mrs Gray, who lives in South London, said that she would not want any recognition to be accompanied by inspections and paperwork.

"I suppose the danger is that if the Government agrees to pay they’ll want to start vetting grandparents and coming round to their houses and seeing what’s going on. It could be a dangerous path to start going down if that is where it leads," she said.

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