Parents with children enrolled in government-supported preschools will pay lower fees from 2025, and lower-income families with mothers who do not work will receive higher pre-school subsidies.
The fee cap for full-day childcare will drop by $40 a month to $640 for anchor operators and $680 for partner operators in 2025, to make pre-schools more affordable, Deputy Prime Minister Lawrence Wong said in his Budget speech on Feb 16.
It will be lowered again in 2026, he said, adding that details will be announced at a later date.
With the lowering of fees, full-day preschool expenses for dual income families will be comparable to the cost of sending a primary school pupil to school and afterschool student care.
There are currently five anchor operators and 28 partner operators. A total of 333 centres are run by partner operators, which include chains such as Anglican Preschool Services and Little SkoolHouse.
Anchor and partner operators receive government funding and cap their fees to remain affordable.
DPM Wong said pre-school subsidies will be increased for low-income families with non-working mothers so that they receive the same subsidies as working mothers. This will benefit up to 17,000 children, he added.
Currently, more subsidies are given to children with working mothers, he noted.
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