Reference Data for Determining Baby Bonus Quantum

Mr Kenneth Tiong Boon Kiat asked the Prime Minister and Minister for Finance (a) whether the Ministry publishes official estimates of child-raising expenditures by age band, as the United States has since 1960; (b) what reference data determines Baby Bonus quantum; and (c) whether Baby Bonus cashflow fit has been evaluated against cost peaks in the first 36 months, particularly for lower-income households facing immediate infant care expenses.

The Government is strongly committed to supporting Singaporeans to realise their marriage and parenthood aspirations. We provide a suite of generous financial support for families with children, in the form of cash and cash-like payouts, grants, education and healthcare subsidies and tax benefits.

We do not publish estimates of child-raising expenditure. Such standalone estimates would not be useful as child-raising expenditure varies greatly depending on a family's needs, parents' expectations and choices.

Instead, in determining the quantum and cashflow for the Baby Bonus Scheme, we consider data, such as household income and expenditure, including child-related expenditure, as well as feedback from parents. For example, in 2023, in response to parents' feedback, we enhanced the Baby Bonus quantum and adjusted the payout structure to provide parents with sustained financial support until their child enters primary school.

We recognise that the costs incurred by parents is higher when the child is younger. Hence, a larger portion of the Baby Bonus Cash Gift is paid to parents upfront to support the higher initial costs at birth and infancy, with regular payouts thereafter until the child turns 6.5 years old.

Over and above the Baby Bonus Cash Gift, other support is provided within the first 36 months of a child's birth. Families also receive support through the Child Development Account (CDA) First Step Grant given at the child's birth, as well as Government co-matching of parents' savings into the CDA. CDA monies can be used for approved child-related expenses, such as infant care, preschool and medical fees.

The Government has also kept preschools affordable by providing subsidies to parents of Singapore Citizen children and imposing fee caps at Government-supported Anchor Operator (AOP) and Partner Operator (POP) preschools.

Currently, all Singapore Citizen children enrolled in a licensed preschool are eligible for a basic subsidy of up to $300 per month for childcare and up to $600 per month for infant care. To further lower costs, eligible families receive additional means-tested subsidies, with more for lower-income. We enhanced these additional subsidies in 2020, by raising the income ceiling from $7,500 to $12,000 and increasing subsidy amounts across all eligible income tiers.

We have also progressively reduced fee caps in AOP and POPs. Fee caps were lowered for both full-day infant care and full-day childcare in 2023. They were further reduced for full-day childcare last year and at the start of this year. In addition, lower-income families benefit from further support through other targeted schemes, such as the Child Care Financial Assistance and Start-Up Grant. All these help defray the costs of the child at a younger age.

We will continue to review our measures to strengthen support for parents in managing the costs of raising children.