Number of Singaporeans Provided Childcare, Preschool and After-school Care Subsidies

Mr Speaker, all families with Singaporean children enrolled in childcare programmes receive a universal Basic Subsidy. In addition, working mothers with a monthly household income of $12,000 or below are eligible for a means-tested Additional Subsidy, with lower income families receiving higher subsidies.

Families with Singaporean children enrolled in kindergartens run by Anchor Operators and MOE and whose monthly household income is $12,000 or below are eligible for a means-tested subsidy under the Kindergarten Fee Assistance Scheme or KiFAS. Larger families can choose to have their household income assessed on a per capita basis, which may enable them to qualify for a higher tier of the Additional Subsidy or KiFAS.

Today, 103,400 Singaporean children are enrolled in full-day childcare. Of these, all receive a Basic Subsidy each month. Sixty-one thousand five hundred children, or six in 10, receive an Additional Subsidy each month, as their families have monthly household income of $12,000 or below. For this group, the median total subsidy is $560 and the median nett fee after subsidy is $210. Nine thousand nine hundred children, or one in 10, receive the highest tier of the Additional Subsidy, as they are from families with monthly household income of $3,000 and below. For this group, the median total subsidy is $767 and the median nett fee is $3.

For kindergarten, 18,800 Singaporean children are enrolled in Anchor Operator- and MOE-run kindergartens. Of these, 12,000 children, or over six in 10, receive KiFAS each month, as their families have monthly household income of $12,000 or below. For this group, the median subsidy is $156 and the median nett fee after subsidy is $15. Four thousand three hundred children, or two in 10, receive the highest tier of the KiFAS subsidy, as their families have monthly household income of $3,000 or below. For this group, the median subsidy is $170 and the nett fee is $1.

The Member asked if we could extend subsidies to non-working mothers taking care of older children in the family.

Non-working mothers who need childcare due to certain circumstances, such as those who are looking for employment or are caring for a younger child aged 24 months and below, a special needs child or a sick family member, can apply for the same subsidies as working mothers under Special Approval. From August 2020, families under HDB's Public Rental Scheme and MSF’s ComCare schemes automatically qualify for maximum pre-school subsidies, regardless of the mother’s working status.

Non-working mothers may also consider enrolling their children in half-day kindergarten programmes, which are often more affordable than full-day childcare programmes. KiFAS is available at kindergartens run by Anchor Operators and MOE, and does not depend on the mother's working status.

As for student care, student care centres provide care and supervision to school-going children from seven to 14 years old. To ensure that student care remains affordable, MSF provides children from lower income families with monthly subsidies for student care fees under the Student Care Fee Assistance or SCFA scheme. These subsidies are available for all eligible families with monthly household income of $4,500 or below or per capita income of $1,125 or below, including those with non-working parents who are looking for work, on medical leave, or with certified full-time care-giver duties for a dependant and so on.

Around 36,000 children are enrolled in MSF-registered student care centres today, of which 6,600 Singaporean children are SCFA beneficiaries. Of the 6,600 children, the median SCFA subsidy is $243, and the median net fee after subsidy is $30. One thousand and eight hundred children, or three in 10, receive the highest tier of the SCFA subsidy, as their families have monthly household income of $1,500 and below. The median SCFA subsidy is $275 and the median net fee after subsidy is $5. Thirty five percent of these 1,800 children have zero household income.

The Member also asked if we could eliminate means-testing so that families can pay a uniform fee for pre-school and student care. Means-testing allows the Government to use fiscal resources more effectively and to extend more support to families with greater needs. In January 2020, we raised the household income ceiling for the Childcare Additional Subsidy and KiFAS to $12,000 per month, up from $7,500 and $6,000 respectively, to support more families with pre-school expenses. We also increased the subsidy amounts for each eligible tier, by up to $240 per month for the Additional Subsidy.

Similarly, for student care, we recently enhanced the SCFA scheme to strengthen support for lower income families. In July 2020, the monthly household income ceiling was raised from $4,000 to $4,500. The per capita income ceiling was raised from $1,000 to $1,125, allowing more families to qualify for subsidies. The quanta for means-tested SCFA subsidies have also been increased, such that eligible families can receive up to $60 more in subsidies per month.

We will monitor the impact of the enhancements, because these are very recent, and review these schemes when necessary to ensure the affordability of pre-school and student care, especially for lower income families. For pre-school, we aim to lower fee caps for full-day childcare at Government-supported pre-schools over the medium term to make pre-school even more affordable for all families, starting with Partner Operator pre-schools in January 2021.

Mr Gan Thiam Poh.

Mr Gan Thiam Poh (Ang Mo Kio): I thank Minister for the comprehensive reply. In fact, I appreciate all the effort that is given by the Government to the families.

My question is: will the Government also consider incentivising families who have more children? This means, based on the number of children they have, they have more subsidy, higher quantum given to them. This is also to ease the burden, especially faced by the sandwiched class and encouraging them to have more babies.

Encouraging more babies is one reason why we did it, but not the reason to do it. For childcare, for example, we want to make sure that children get access to affordable and quality pre-school education. That is very important, especially during the growing years. For students above seven years old who need care because of the circumstances in their families, they have access to higher subsidies given the special circumstances the families may need.

So if Members know of families who do not qualify because of this income criteria, they can always come forward and appeal for higher subsidies. And we will look at it carefully.