CHILDCARE SUBSIDIES

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CHILDCARE SUBSIDIES: 1.

Mr Zainudin Nordin asked the Acting Minister for Community Development, Youth and Sports whether he will continue to offer childcare subsidies and vary the amount depending on the income-level and number of dependants as this will lower the financial burden of the less-fortunate income group and ensure that they can afford pre-school centres of reasonable quality.

The Minister of State for Community Development, Youth and Sports (Mrs Yu-Foo Yee Shoon) (for the Acting Minister for Community Development, Youth and Sports): Mr Speaker, Sir, I would like to thank Mr Zainudin for his concern.

My Ministry currently provides childcare subsidies to make childcare affordable. A childcare subsidy of up to $150 per month is available for children who are enrolled in childcare centres. These subsidies are for the first to fourth child.

We recognise that low-income families will need additional support so as to lower their financial burden and provide good early childhood development programmes for their children.

My Ministry has therefore been providing additional assistance to low-income families through the Centre-based Financial Assistance Scheme for Childcare (CFAC). CFAC is a means-tested scheme, targeting at families that earn $1,500 and below per month. It provides additional childcare assistance of up to $265 per month for each child who attends full day care, depending on the family's income.

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This subsidy is provided for the first to fourth child. The families may also apply for a one-time Start-up Grant to help them pay the initial costs of placing the child in a childcare centre for the first time. The Start-up Grant can help to cover expenses such as the registration fee, one month deposit, the first month's fees and uniforms.

With additional childcare assistance, low-income families can therefore expect Government subsidies ranging from between $130 and $415 per month per child to offset the cost of sending their children to full-day childcare. In other words, if a mother would like to send her child to a typical childcare centre run by a Voluntary Welfare Organisation, she needs to pay between $35 and $320 per month for each child.

CFAC subsidy therefore already takes into account the family's income level. Families with more children who go to childcare centres will also get more subsidy under CFAC, as the subsidy is given on a per child basis.

. The Government reviews CFAC subsidy rates every two years to ensure that childcare remains affordable for low-income families. We will continue to provide additional assistance for low-income families to send their children to childcare, as we recognise the importance of providing developmental opportunities to these children. At the same time, the assistance will help to facilitate the entry or re-entry of the mothers into the labour force, so that they can work and supplement the families' incomes.