Singapore’s population and workforce demographics is seeing great shifts - an ageing population as well as an increasing proportion of Professionals, Managers and Executives (PMEs). Median monthly household income (HHI) is also steadily increasing, currently standing at $9,023 in 2017.
Working people are seizing opportunities that come with economic transformation, either expanding their skills sets or trying out new careers. Sacrifices are made whether in terms of workers’ quality time with loved ones, or stretching their financial liabilities. This is more so for working parents who would have added responsibilities in caring for both their young and elderly dependents. Ahead of Singapore Budget 2018, the Labour Movement is calling for enhanced support for middle income working parents to better cope with rising child raising costs.
Increased childcare subsidies: Greater peace of mind for working parents
Currently, all eligible Singapore citizen children enrolled in centre-based care are eligible for a basic subsidy of up to S$300 for child care per month. There has also been special focus accorded to lower income families, who enjoy additional subsidies so that their children are able to have a good start in life.
However, childcare fees have also seen gradual increase in recent years - effectively eroding the significance of existing subsidies. Middle income families bear the brunt of this phenomena, where their rising median wages render them inaccessible to additional forms of assistance.
The last review of the basic subsidy was done in 2008, and with the progressive increase in the median fees as well as in tandem with the increasing price hike in necessities, it is timely for the government to re-calibrate the basic child care subsidy to keep up with rising fees over time to help middle-income families. Additionally, the current HHI and household per capita income (PCI) ceilings could be increased in tandem with rising median HHI.
Widening scope of subsidy for student care to cover families up to 50th percentile
Beyond pre-school, families with primary school-going children have to cope with issues surrounding the availability of and costs related to student care services. The Ministry of Education has announced plans to set up a student care centre (SCC) in every primary school by 2020, and has committed to expand the capacity of existing school-based SCCs at a pace that does not compromise quality. Meanwhile, parents will have to continue to place their children in privately-run centres and incur additional transport costs. School-based centres, run by voluntary welfare organisations or commercial operators, generally charge less than $300 a month, while those outside schools can charge up to $500 a month.
Subsidy for student care was enhanced since 1 January 2016 based on a higher norm fee of $290. This subsidy is available only to families with gross monthly HHI of up to $4,000 or household PCI of $1,000 or less through the ComCare Student Care Fee Assistance Scheme, which covers those with monthly HHI of 20th percentile and below. Families at the lowest income tier can pay as little as $5 per month.
While plans are underway to meet the rising demand for student care services, there remains the current issue of affordability of student care services for middle-income families especially as these families would also need to balance the needs of both their young and elderly dependents. Thus, the Labour Movement is calling for the Government to consider subsidising working families up to the 50th percentile household income level to ensure middle income families can better manage after-school care costs. Specifically, the HHI and PCI could be increased so that more families can benefit from the subsidy.
NTUC Champion for Women and Family Desmond Choo shares his hopes for fellow working parents, “Working parents are at significant stages of their lives, often managing their parental duty alongside career peaks. The Labour Movement recognises the pressing need for the government and industry partners to come together to rethink, review and possibly recalibrate existing support nets that may not be as relevant for our working people, particularly the middle income earners who are stretching their hard-earned dollars to meet the demands of multiple liabilities.”
A summary of the Labour Movement’s call for increased childcare and student care subsidies is available in Annex B.
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