In a recent speech on Budget 2025, Prime Minister and Minister for Finance Lawrence Wong unveiled the Large Families Scheme, offering substantial support for families with three or more children. This new initiative includes financial assistance in the form of grants and credits, aiming to alleviate the financial burden on larger families and promote social equality. Tan Poh Lin, a Senior Research Fellow at the Institute of Policy Studies, believes that this move is not only strategic but also essential in addressing the evolving landscape of family planning in Singapore.
### The Importance of Supporting Larger Families
As families grow in size, so do their expenses. The cost of raising multiple children can be daunting, making it challenging for parents to provide for their families adequately. The new Large Families Scheme recognizes this financial strain and seeks to alleviate it by offering up to S$16,000 in additional support for each third or subsequent child. This support is divided into three components, providing financial assistance for various stages of a child’s development.
The first component focuses on newborn Singaporean citizens, offering S$10,000 in the Child Development Account (CDA) with a doubled First Step grant. This financial boost aims to ease the financial burden of childcare expenses and early childhood development. The second component provides S$5,000 as a MediSave grant for mothers for each third and subsequent child, specifically addressing pregnancy and delivery costs. Lastly, large families will receive S$1,000 in LifeSG credits for each third and subsequent child in their first six years, ensuring ongoing support for the family’s needs.
By targeting families with three or more children, the scheme aims to make parenthood more affordable and accessible, encouraging larger families to thrive. Tan Poh Lin emphasizes that this approach is strategic in addressing the changing landscape of family planning, where financial considerations play a significant role in the decision-making process.
### A Shift in Fertility Trends
The demographic landscape in Singapore is evolving, with a growing trend towards smaller families. More couples are opting to have only one or no children at all, leading to concerns about declining fertility rates. Recognizing this shift, the Large Families Scheme seeks to incentivize families to consider having a third child, thereby offsetting the trend towards smaller families.
Tan Poh Lin highlights the importance of supporting larger families not only in terms of financial assistance but also in creating a more equitable distribution of resources. By providing additional support to families with multiple children, the scheme aims to ensure that all children have the opportunity to thrive and succeed, regardless of their family background.
In line with the national “Made for Families 2025” plan, the Large Families Scheme is part of a broader initiative to support families at various stages of life. This multi-pronged approach includes promoting access to flexible work arrangements, providing parenting resources, and extending support to vulnerable groups within the community. By addressing the diverse needs of families, the scheme aims to create a more inclusive and supportive environment for all individuals.
### A Holistic Approach to Family Support
Tan Poh Lin underscores the importance of taking a broad-based approach to addressing low fertility rates in Singapore. By understanding the complex social and economic factors that contribute to family planning decisions, policymakers can create more effective interventions that cater to the diverse needs of families. The Large Families Scheme is a step in the right direction, demonstrating a commitment to supporting families across different life stages and circumstances.
As Singapore navigates the changing landscape of family planning, initiatives like the Large Families Scheme play a crucial role in shaping the future of parenthood in the country. By providing financial assistance, resources, and support to families, policymakers aim to create a more conducive environment for raising children and building strong, resilient families.
Tan Poh Lin’s insights shed light on the significance of supporting larger families and the broader implications of the Large Families Scheme. As Singaporeans embrace the opportunities and challenges of parenthood, initiatives like this offer a glimpse into a future where families of all sizes can thrive and prosper.
