Budget 2025: Singapore children aged 12 and below to get $500 LifeSG credits

"Having children isn't just about bringing them into the world; it's a lifelong responsibility, or at least until they reach adulthood," said Desiree Leung, a mother of three.

For the 30-year-old Leung, that responsibility is also a strain on her financial resources - a constant concern for her despite having a husband who's also in the workforce.

"We don't believe that we should cut back on spending what we should for the kids. We believe in increasing our earnings… that's why we can push ourselves to earn what we need to provide the family," she said.

However, her eldest child's Child Development Account (CDA) is depleting, so she hopes the government can provide additional bonuses - not just for her eldest, but also for her other children.

Thankfully, some of her worries were allayed on Tuesday - Leung's family and many others in Singapore will be given $500 worth of Child LifeSG Credits as a one-off provision for each of their Singaporean children up to 12 years old, Prime Minister Lawrence Wong announced during Budget 2025 on Tuesday (Feb 18).

These credits will be disbursed in July for those aged one to 12 this year, and in April 2026 for those born this year.

Children over 12 years of age will also receive benefits from Budget 2025. Come July, each Singaporean child aged 13 to 16 will get a $500 credited to their Edusave Account, and those aged 17 to 20 will get $500 injected into their Post-Secondary Education Account.

Reduction in childcare fee caps

Moreover, there will also be further reductions in monthly full-day childcare fee caps for government-supported preschools.

Anchor operator centres will be capped at $610, while partner operator centres will be capped at $650.

"After basic childcare subsidies, a dual-income family will pay about $300 per child," Wong said. "Lower and middle-income families will pay less after additional subsidies."

Additionally, the Large Families Scheme, aimed at supporting married couples who either have or aspire to have three or more children, will also provide Leung some measure of relief.

Under this scheme, families will also receive $1,000 each year in LifeSG credits for each third and subsequent child between the ages of one and six.

The existing Child Development Account First Step Grant will also see an increase of $5,000 for parents.

All Singaporean children currently receive a $5,000 CDA First Step Grant, and this will double to $10,000 for each third and subsequent child born on or after Feb 18.

This sum can be spent on preschool and healthcare expenses of the child and their siblings, said PM Wong.

There will also be a new Large Family MediSave Grant of $5,000 for each third and subsequent Singaporean child born from Feb 18. 

This will be disbursed into the mother's MediSave account which can be used to defray pregnancy and delivery costs as well as family healthcare expenses.

Despite these benefits, however, Leung feels that she's not too inclined on having a fourth child.

"It boils down to personal choice," she explained, adding that three is enough as the couple have to juggle their career.

"If ever all basic expenses for delivery, education and medical are covered at least until primary school, I might consider," Leung laughed.

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khooyihang@asiaone.com
chingshijie@asiaone.com

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