The States had voted to start charging some families earning over a certain amount for childcare in the year before school.
An independent review by the Early Years Childhood Partnership has recommended the idea be scrapped.
The Education Minister, Deputy Rod Byrans has said he won’t be introducing means-testing in 2018.
Deputy Bryans said: “Following initial discussions with the chair of the EYCP, Dr Cathy Hamer, I have decided to rethink our early years issues. I also wanted to give parents some clarity so that they can plan ahead. We still have a lot of work to do to get the provision right in this area but, in the meantime, I want to remove some of the uncertainty for families.
‘The main message from the report – and it is an extremely strong one – is that all the evidence shows early years education is vitally important. The EYCP wants us to recognise this as a government and to put more effort into supporting early years. Their report shows that children who have good quality early education start school three months ahead in their literacy and language skills. The benefits carry on throughout a child’s life. They are 20% more likely to get five good GCSEs and they earn more as adults. This is hugely significant for our community and for our economy.”