Budget 2024: Family support measures to make preschools more affordable, uplift lower-income households

SINGAPORE: Parents in Singapore will get more help with preschool fees, as Deputy Prime Minister Lawrence Wong announced a series of measures to "build a Singapore made for families" on Friday (Feb 16).

There is a focus on lower-income families with young children, with new ComLink+ Progress Packages designed to support them, in what Mr Wong described in his Budget speech as a "major innovation" in Singapore's social policy landscape.

This is what families can look forward to.

LOWER PRESCHOOL FEES

The government aims to make full-day preschool expenses for dual-income families comparable to those of primary school and after-school student care, said Mr Wong, who is also finance minister.

First, the monthly childcare fee caps in government-supported preschools will be lowered in 2025. The caps will be reduced to S$640 for anchor operator preschools, and S$680 for partner operator preschools, down from S$680 and S$720 per month, respectively.

There will be another move to lower fee caps in 2026. Details will be announced later.

Second, the government will enhance existing preschool subsidies for lower-income families. The higher subsidies that are currently given to children with working mothers will be extended to all children from lower-income families, including those with mothers who are not working.

This will benefit up to 17,000 children, said Mr Wong.

COMLINK+ PROGRESS PACKAGES

Lower-income families with young children who live in public rental flats will get more help though the new ComLink+ Progress Packages.

Families in ComLink+ can receive financial top-ups when they make progress on long-term goals, working with family coaches assigned by the Ministry of Social and Family Development.

There will be four ComLink+ Progress Packages, each geared towards the long-term goals of preschool education, sustained employment, financial stability and saving for home ownership.

The preschool education package will be the first to be implemented in the second half of 2024, with the other three to be launched from 2025 onwards.

In the preschool package, for example, a family will receive top-ups to a child's Child Development Account (CDA) if they ensure the child's preschool enrolment and regular preschool attendance.

In the employment package, adults could receive payouts of up to S$600 every quarter if they secure a job and stay employed.

Those who make voluntary contributions to their Central Provident Fund (CPF) will also receive matching government grants to grow their savings for home ownership.

The packages will be piloted for three years before assessing their effectiveness.

HELPING COUPLES RENT FLATS

Addressing couples who have already booked build-to-order flats but are waiting for them to be completed, Mr Wong said many apply for the Parenthood Provisional Housing Scheme (PPHS).

Under the PPHS, the Housing and Development Board (HDB) provides temporary subsidised rental housing to such couples. The HDB is increasing supply to meet demand for the scheme, said Mr Wong.

In the meantime, to help more eligible couples rent a HDB flat in the open market, the government will provide them with a PPHS (Open Market) Voucher for one year.

SPECIAL EDUCATION

Mr Wong also said Singapore was studying further moves to alleviate the cost pressures on families of children with special needs.

For a start, the government will reduce the maximum monthly fees at special education schools to S$90, down from S$150 currently.

Fee caps at all special student care centres will also be lowered to reduce families' out-of-pocket expenses.

Adults with disabilities will get more support with employment and integration into the community, with more spaces at sheltered workshops and day activity centres.

The government will also launch more enabling services hubs to give community support to people with disabilities and their caregivers.

HONING OTHER SKILLS IN SCHOOLS

Mr Wong said that the Education Ministry is also placing more emphasis on developing competencies like "adaptive and inventive thinking, communication skills and civic literacy" in schools.

"We want to encourage and recognise students who demonstrate such competencies, including by enhancing the Edusave awards," he said.

To that end, the government will top up the Edusave Endowment Fund by S$2 billion to support these and other education initiatives.