Identifying and Addressing Utilisation Gaps in Family Support Schemes Among Eligible Households by Household Type and Income
Ministry of FinanceSpeakers
Summary
This question concerns whether the Government routinely analyses family-support scheme utilisation gaps across household types and income levels to address potential barriers in affordability, awareness, or scheme design. Mr Gabriel Lam asked the Prime Minister and Minister for Finance whether such differences trigger reviews to ensure eligible families receive intended benefits. Responding on behalf of the Prime Minister, Minister Indranee Rajah affirmed that regular reviews are conducted, citing a study revealing that lower-income families saved below Child Development Account (CDA) co-matching caps from their third child onwards. Consequently, the Government is shifting a significant share of support from CDA co-matching to cash under the new SG Child Support Package and setting a uniform $5,000 CDA co-matching cap across all birth orders. Minister Indranee Rajah added that lower-income families receive higher targeted subsidies for preschool, education, and healthcare, with ongoing monitoring to adjust schemes where necessary.
Transcript
1 Mr Gabriel Lam asked the Prime Minister and Minister for Finance (a) whether the Government routinely analyses significant differences in utilisation of family-support schemes among eligible households by household type and income; and (b) whether such differences trigger reviews to determine whether affordability, awareness or scheme design prevents some eligible families from receiving the intended benefit.
Ms Indranee Rajah (for the Prime Minister): The Government regularly reviews family support schemes to assess whether they are meeting their objectives. Where relevant, these reviews examine differences in take-up and utilisation across household types and income groups.
For example, the recent Ministry of Social and Family Development study on parental co-matching of the Child Development Account (CDA) monies across families of different incomes and sizes found that while most parents saved close to the Government co-matching caps for the first two birth orders, lower-income families tended to save below the caps from the third child onwards.
In response, the Government has therefore decided to shift a significant share of its support from CDA co-matching to cash under the new SG Child Support Package. We will also set a uniform CDA co-matching cap of $5,000 across all birth orders. Lower-income families also receive targeted support, including higher means-tested subsidies for preschool, education and healthcare.
We will continue to monitor how effectively family support schemes reach the intended families and adjust them where needed.