CHILDCARE SUBSIDIES

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CHILDCARE SUBSIDIES:

(Review): 8.

Er Lee Bee Wah asked the Minister for Community Development, Youth and Sports (a) whether his Ministry will consider enhancing the current childcare subsidies to encourage housewives from lower-income families to seek employment; and (b) when were the childcare subsidies last reviewed.

The Minister for Community Development, Youth and Sports (Dr Vivian Balakrishnan): I would like to assure the Member that we do encourage housewives, especially those from the lower- income families, to seek employment and we do help them by providing additional subsidies for their children to attend childcare. The Centre-based Financial Assistance Scheme for Childcare (CFAC) helps low-income families to send their children to childcare centres. This scheme provides monthly subsidies as well as a one-off start-up grant to eligible families. This enables and encourages their mothers to find employment and to remain in employment. The CFAC subsidy is over and above the $150 subsidy which the Government provides to children of working mothers.

The CFAC subsidies are reviewed regularly and, in fact, the last review occurred in February this year and on lst July, which is this month, we increased the CFAC subsidies. Eligible families will receive a start-up grant of $1,000 as well as an additional recurrent monthly subsidy of up to $340 a month. So, it is $340 plus $150.

In addition, with effect from this month, we have also extended the CFAC

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to more households. The scheme was extended beyond the previous cut-off point of $1,500 household income to now include families who lie in the range of between $1,501 and $1,800. These families are eligible for a $1,000 start-up grant and a CFAC subsidy of up to $200.

It allows me to assure Members of this House that money is not the limiting factor as far as low-income families sending their children to childcare centres is concerned.