Expanding Uses of CDA Funds and Applying Means-testing to CDA Top-ups for More Equitable Assistance to Lower-income Households

37 Mr David Hoe asked the Prime Minister and Minister for Finance (a) whether the Ministry will consider expanding permissible uses of Child Development Account (CDA) funds to subsidise enrichment classes or programmes beyond preschools; and (b) whether the Ministry will consider applying means-testing to future CDA fund top-ups to uplift lower-income households more equitably.

Ms Indranee Rajah (for the Prime Minister): From May this year, we already expanded the scope of CDA use to cover all preschool incidental charges stipulated in the Early Childhood Development Centres (ECDC) Regulations 2018, including optional enrichment programmes offered in-school. This was to provide more financial support for preschoolers to fully tap on the learning opportunities offered by their preschools. This is similar to how students are able to tap on Edusave for enrichment programmes organised by their schools.

To safeguard the use of CDA funds for preschool fees and incidental charges, it is not advisable to open up CDA funds for enrichment programmes offered outside of preschools.

CDA top-ups are a broad-based measure to help families with their cost of child-raising. Lower-income families may receive further means-tested subsidies, such as additional preschool subsidies. Lower-income households who require additional financial support may also approach Social Service Offices for financial assistance.