Debated in Parliament on 7 Nov 2016.
Mr Desmond Choo asked the Minister for Social and Family Development (a) how has the affordability of childcare services changed since the last review in 2008; and (b) whether the Ministry will review the basic subsidy of $300 for working mothers.
Providing affordable and quality childcare services for parents is a key priority for the Government. In the last few years, we have increased the provision of these services through our Anchor Operator (AOP) and Partner Operator (POP) schemes, which now make up almost half of the childcare market.
Operators under the AOP and POP schemes are subject to fee caps of $720 and $800 (before GST) respectively, and controls over fee increases. Singaporean children enrolled in POP centres also benefited from a one-off reduction in fees when the scheme was rolled out in January this year. With these schemes in place, the industry median fee was lowered for the first time in at least a decade, from $900 to $856.
In addition, the Government provides childcare subsidies to help defray the fees borne by parents. On top of the basic subsidy of $300 per month for working mothers, lower- and middle-income families who require more help have been offered additional subsidies of up to $440 per month since 2013. For example, a low-income family with a child enrolled in an AOP centre charging $720 (with GST) will only pay the minimum co-payment amount of $3 a month.
More recently, the Child Development Account (CDA) First Step grant was introduced this year. CDA funds can also be used to pay for education and healthcare needs of the child, including childcare fees.
The multi-pronged approach of providing quality and affordable services through Anchor and Partner operators, complemented by Government support through the CDA and our childcare subsidy framework, has made childcare more affordable. We will continue to review our policies, including our childcare subsidies, to ensure that quality childcare remains affordable for families.
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