Student care operators to pay one-month deposit under new safeguards from Dec 2026

SINGAPORE - Newly appointed student care operators in primary schools will have to pay a security deposit equivalent to one month’s fees, as part of new safeguards introduced by the Education Ministry (MOE).

The size of the deposit will be pegged to the centres’ enrolment.

This measure, which will be gradually implemented from Dec 2026 when existing contracts expire, follows the contract termination of Little Professors Learning Centre (LPLC) in February 2026, which affected 1,800 children in eight primary schools.

The ministry will be able to draw on the deposit in the event the operator does not fulfil its contractual obligations, said an MOE spokesperson, in response to queries from The Straits Times. “It may be used to mitigate financial losses, including supporting affected families as appropriate.”

ST reported on Feb 14 that 54 employees had lodged reports over unpaid January salaries and Central Provident Fund (CPF) contributions since November 2025.

Several employees of Little Professors had previously told ST that they stopped working on Feb 10 after the company failed to pay their January salary, which was due on Feb 7.

Before four new operators were formally appointed to take over on April 6, staff from the affected primary schools had been helping to cover the after-school care. Affected parents did not have to pay for the services then.

Education Minister Desmond Lee said in a written parliamentary reply in September that the MOE has enhanced its measures for managing student care centres and Kindergarten Care operators.

He was responding to Yeo Wan Ling (Punggol GRC) who had asked about what changes have been made to the selection and monitoring of student care operators following the LPLC incident, and whether safeguards governing GIRO deductions by student care operators will be strengthened.

In addition to requiring security deposits, the ministry will conduct more regular checks on the operators’ financial health, to detect early signs of financial difficulties.

In response to queries from ST, MOE said if potential issues are detected, it will work out possible solutions with the operator, while prioritising service continuity for students and their families. In serious cases, MOE may terminate the contract and arrange for a replacement operator.

To better protect families against unauthorised GIRO deductions, like what some parents experienced when LPLC double-charged them for their children’s February student care fees, Lee said operators must now clearly specify the purposes for which GIRO deductions may be made in their contracts with parents.

“They will only be permitted to make deductions for those stated purposes. Operators who make unauthorised deductions may have their contracts suspended or terminated,” he said, adding that the Monetary Authority of Singapore is working with the Association of Banks in Singapore and member banks to review how safeguards for GIRO payments can be strengthened.

On the recourse for parents following the LPLC termination, Lee said parents have been advised to seek legal recourse through the Small Claims Tribunals and that police investigations are still ongoing.

Elisha Tushara is a correspondent at The Straits Times, specialising in Singapore’s education landscape.