Lower pre-school fees among key takeaways from MSF budget

Pre-school fees will be further reduced from 2026, and families in need will receive more financial assistance, along with increased subsidies for long-term care services for those with disabilities.

Here are some of the areas covered during the Budget debate in Parliament for the Ministry of Social and Family Development (MSF) on March 10.

1. Lower pre-school fee caps

Attending pre-school will be made more affordable with a further lowering of fee caps for Singaporean children at centres under the anchor operator and partner operator schemes.

From January 2026, full-day childcare fee caps will be reduced by $30, to $610 for anchor operator centres and $650 for partner operator centres, excluding goods and services tax, said Minister of State for Social and Family Development Sun Xueling.

Fees were previously reduced progressively for anchor centres and partner centres - pre-school operators that receive funding from the Government to keep their fees at a certain cap to ensure affordability - from $720 and $760, respectively, in 2021 to $640 and $680, respectively, now.

From 2025 to 2029, the Government will also work with anchor operators to add close to 40,000 new infant care and childcare places, Ms Sun said.

There are about 220,000 full-day infant care and childcare places today, up from about 120,000 in 2015.

By the end of 2025, the target of making it possible for 80 per cent of pre-schoolers to have a place in a government-supported pre-school would have been met. This is up from 50 per cent in 2019.

2. Expanded usage for Child Development Account

From May 2025, parents can use the Child Development Account (CDA) for pre-school enrichment programmes like speech and drama classes and robotics, said Ms Sun.

This is part of a move to extend CDA usage to cover incidental costs at pre-schools registered under the scheme. The CDA is now used for school fees, childminding fees and approved medical fees.

3. Increased ComCare assistance

Lower-income families will receive more help to meet their basic needs, with higher amounts for ComCare's Short-to-Medium Term Assistance and Long-Term Assistance, said Senior Parliamentary Secretary for Culture, Community and Youth and Social and Family Development Eric Chua.

The amount of assistance will differ according to the household's composition, needs and income.

For example, a one-person household on the Long-Term Assistance scheme will receive an increase of $120 in assistance, almost 20 per cent more than the current amount.

4. Supporting those with disabilities to live independently

Two pilots to allow people with disabilities, with low to moderate support needs, to live independently in the community will be launched in the second half of 2025 and in 2026, said Mr Chua.

The Home Support Programme (HSP) and Enabled Living Programme (ELP) will support those with disabilities to continue living in the community, instead of being referred to an institution if they do not have adequate caregiver support and alternative residential options.

The HSP pilot will be launched in 2026, while the ELP will be launched in the second half of 2025, Mr Chua added.

5. More subsidies for long-term care services

From 2026, subsidies for long-term care (LTC) services will be increased and extended to more households, said Mr Chua. These include disability services such as adult disability homes and day activity centres.

Subsidies for residential and non-residential LTC services will increase by up to 15 percentage points. The per capita household income eligibility threshold will be raised from $3,600 to $4,800.

For Singapore citizens born in or before 1969, MSF will introduce additional subsidies of 5 percentage points for those receiving residential LTC services, and 15 percentage points for those receiving non-residential LTC services.

6. More employment, learning opportunities for those with disabilities

SG Enable will progressively expand its School-to-Work transition programme, doubling its intake from about 45 a year today to 90 by 2030, said Mr Chua.

The programme offers structured training, job placement and job support in sectors like transport and financial services to graduates from special education schools.

The Institute of Technical Education (ITE) and SG Enable will also enhance their internship and employment support programme for ITE students with special educational needs, to provide pre-employment training, career exploration opportunities and post-graduation job placement with on-site job coaching for up to a year.

The Enabling Employment Credit, which provides significant wage offsets for each person with disabilities hired, will also be extended till end-2028, Mr Chua said.

7. New Bill to improve quality of care in social residential homes

A new Social Residential Homes Bill will be introduced in 2025 to provide a licensing framework aimed at improving the quality of care in such homes and the welfare of their residents.

Social residential homes are facilities that provide accommodation to those who require care, support and social intervention, like people with disabilities and destitute adults.

"Under this Bill, we will codify the good progress made by the sector through a new licensing regime, with clear requirements to ensure the safety and well-being of clients," said Minister for Social and Family Development Masagos Zulkifli.

8. Review of family services in Singapore

A Family Services Review Committee was convened in June 2024 to study how to coordinate services between agencies and attain better outcomes for families, Mr Chua said.

The committee, co-chaired by Mr Chua and Professor Tan Tai Yong of the Singapore University of Social Sciences, has been working with the sector to understand the views of those in it.

Family services provide support and intervention for vulnerable individuals and families. Today, there are multiple social service agencies providing different family services, ranging from family service centres to protection specialist services.

Families may receive support from multiple programmes, resulting in gaps because interventions are not always coordinated.

Fifty representatives from 28 social service agencies and associations are involved in the committee and working groups. It has engaged more than 200 social service professionals, Mr Chua said.