Reviewing Baby Bonus Scheme Disparity for Families with Two Children versus Families with Third and Subsequent Children

Mr Lee Hong Chuang asked the Prime Minister and Minister for Finance (a) what is the policy rationale for the difference in Child Development Account (CDA) Government co-matching caps and Baby Bonus Cash Gift amounts between the second child and third and subsequent children under the enhanced Baby Bonus Scheme; and (b) whether the Ministry will consider aligning these support levels to further ease the cost of raising two-child families.

One of the key policy objectives of the Baby Bonus Scheme is to encourage couples to have more children. Higher amounts of the Baby Bonus Cash Gift (BBCG) and the Child Development Account (CDA) Government co-matching caps are therefore given to children of higher birth orders to support larger families.

The Government recognises that families with fewer children also require financial support in raising children. We have strengthened financial support for children in all birth orders over the years. For example, in 2023, we increased the BBCG and CDA First Step Grant quanta for children of all birth orders, and increased Government co-matching caps by $1,000 for children of the first and second birth orders. The Government has also increased preschool subsidies, which do not vary by birth orders.

We will continue to review our marriage and parenthood support measures, including the Baby Bonus Scheme.