Japan Agrees To Expansion Of Children's Monthly Allowances To Overcome Decreased Birth Rates

Illustration of mothers and children in Tokyo, Japan. (Pixabay/Jason Goh)

JAKARTA - Japan's cabinet on Friday approved a bill to expand the coverage of monthly child support to high school-age children, as Prime Minister Fumio Kishida aims to stem a sharp decline in birth rates in Japan.

Based on the plan, the existing income limit for households receiving benefits will be abolished. A new funding scheme will be established, requiring each person to pay an additional 300 to 500 yen in the form of a monthly health insurance premium starting fiscal year 2026.

Starting October 2024, the right to receive 10,000 yen per month will be extended to those aged between 16 and 18.

The current monthly allowance of 15,000 yen for the third child and so on will be doubled to 30,000 yen.

Previously, child support is currently designed to help parents and guardians of children until the age of 15, when many children finish junior high school in Japan.

"We will ensure smooth and substantial support for the benefits received by households who care for children," Ayuko Kato, the minister in charge of child policy, said at a news conference, according to Kyodo News on February 16.

Late marriages and financial concerns are often cited as the reason behind the decline in the number of children in Sakura Country. PM Kishida's government sees the period before the 2030s as a "last opportunity" to reverse the trend.

The government plans to increase annual spending on child care, making it 16 percent of gross domestic product out of 11 percent. This rate is equivalent to Sweden, known for its broad support for children

Other features include increasing allowances for low-income single parents who have three children or more, ensuring that those who take child care leave can receive more benefits.

In addition, because the availability of child care facilities is very important for working parents, the government plans to expand child care support for children aged between six months and two, providing these services to anyone, regardless of their employment status, from April 2026 nationwide.

It is known, Japan recorded around 2.09 million newborns amid the second baby boom in 1973. This figure fell to below 1 million in 2016 and for the first time below 800,000 in 2022.