AWARE welcomes the recent announcement by the Minister for Social and Family Development (MSF) Masagos Zulkifli, regarding improvements in accessibility for lower-income families seeking childcare subsidies.

Starting 9 Dec 2024, all lower-income families with a gross monthly household income of S$6,000 and below will qualify for the maximum amount of childcare subsidies available for their income tier. Furthermore, these families will be able to apply for the subsidies online, directly through the LifeSG app, allowing greater ease and accessibility in managing childcare support. 

These changes, along with the addition of nearly 40,000 new infant and childcare places between 2025 and 2029, represent a constructive step in addressing some long-standing challenges within our childcare system that have restricted access to childcare and, by extension, limited many parents’ ability to seek employment.

These updates respond to some of AWARE’s key advocacy points, namely that:

• The shortage of subsidised childcare places needs to be addressed 
• Low-income families should be afforded subsidies that enable their children to have free childcare 
• The application process should be improved to reduce the high compliance cost for parents and the administrative cost for childcare centres in order to access the subsidies
• There should be no pre-condition of work to be able to access full childcare subsidies

The burden of compliance has, in the past, discouraged some childcare operators from enrolling low-income children. As one operator shared with AWARE, the substantial paperwork required can often be a disincentive. For more on the complexities of accessing childcare subsidies and other barriers to working, see our report, “Why Are You Not Working?“

The government’s plans are a very good step in the right direction, addressing the supply issue, easing the criteria for qualification for full subsidies and reducing the bureaucracy involved in applying for subsidies. 

AWARE celebrates the fact that the current “work first, then childcare” approach will be replaced with a needs-based approach from 9 Dec 2024, that allows low-income families to access full childcare subsidies without having to prove they work at least 56 hours per month. 

We believe that every child in Singapore should have the opportunity to thrive, regardless of their family’s financial situation. We urge further steps to ensure a more equitable future for all Singapore families.