Proposal for Basic Child Care Subsidy to be Tiered with Increased Subsidies for Second and Third Children

14 Mr Christopher de Souza asked the Minister for Social and Family Development whether the Basic Child Care Subsidy can operate on a tiered basis with increased subsidies for second and third children.

Mr Masagos Zulkifli B M M: Additional support is already available for the second or third child in some larger families. While the Basic Subsidy is constant irrespective of birth order, families with a working mother and monthly household income of $12,000 and below are also eligible for the means-tested Additional Subsidy. To support larger families, including those with more children, families with five or more members (including three or more dependants) can have their income assessed on a per capita basis so that they can enjoy higher Additional Subsidy amounts for each child.

Parents can also use their Child Development Account (CDA) funds to defray preschool fees. Savings deposited by parents into the CDA are matched dollar-for-dollar by the Government, up to a cap, with higher co-matching caps for the second and third child.