Children of unwed parents to receive cash benefits under SG Child Support Package

SINGAPORE - The cash benefits of the new SG Child Support Package will be extended to children of unmarried parents - marking a significant shift as children born out of wedlock were previously excluded from some baby-related cash benefits.

Prime Minister Lawrence Wong on Aug 23 announced the new package during the National Day Rally. It will provide up to $62,000 to every Singaporean child.

This includes a $10,000 cash gift and $2,000 of child credits given in cash annually over 16 years.

Between 2020 and 2024, an average of about 745 babies a year were born here to Singaporean mothers, who were not married to the baby’s father at the time of birth. 

Observers said extending the package to children of unwed parents sends a broader signal that a child’s access to support should not depend on the circumstances of their birth - while allowing the Government to continue encouraging parenthood within marriage as a separate policy objective.

In response to queries from The Straits Times, a spokesperson for the National Population and Talent Division (NPTD) said the Government’s longstanding position has been to support parenthood within marriage, and the traditional family unit remains the prevailing social norm in Singapore.

“This continues to be the case, and there is no shift in thinking on this,” she said.

“However, we recognise the importance of supporting every Singapore citizen child in their growth and development.”

As the SG Child Support Package benefits are intended to support children’s growth and development, they will be extended to all Singaporean children, regardless of birth order, family circumstances or their parents’ marital status, the spokesperson said.

Currently, unwed mothers do not get the Baby Bonus Cash gift, which gives $11,000 in cash to the first and second child. 

They also do not qualify for the Working Mother’s Child Relief, a tax relief for working mothers with Singaporean children.

In a parliamentary reply in February, Minister in the Prime Minister’s Office Indranee Rajah said it was not a matter of cost when explaining why unwed parents were not eligible for both schemes.

Rather, both schemes are designed to encouraged parenthood within marriage, she said.

Unwed parents are eligible for government benefits that support their child’s growth and development, such as leave provisions, as well as subsidies for infant care, childcare, education and healthcare, she added.

For example, their children get $5,000 in their MediSave account under the MediSave Grant for Newborns, and they receive all the subsidies that children with married parents get for childcare and infant care.

They are also eligible for Child Development Account (CDA) benefits, which include the CDA First Step Grant and Government co-matching. The money in the CDA can be used at approved institutions for expenses such as pre-school and healthcare.

The NPTD spokesperson added: “The Government will continue to review how it can better support Singaporeans in their parenthood journey.”

Shannon Ang, an assistant professor of sociology at the Nanyang Technological University (NTU), said that with the inclusion of unwed parents, among other changes, child-related benefits are seen less as incentives given to parents to have more children, and more as support for the child.

Ang said: “I think the signal sent here is important - that all children are important for Singapore, regardless of their family situation.”

Tan Poh Lin, senior research fellow at the Institute of Policy Studies, said the shift signals that family well-being, and not incentives, are at the heart of policies going forward.

Chua Yeow Hwee, an assistant professor of economics at NTU, said supporting marriage and supporting children are “two distinct policy objectives” that need not conflict.

“The Government can continue to encourage parenthood within marriage, while recognising that every Singaporean child should have access to support for his or her growth and development regardless of family circumstances.”

Chua added that there is a strong reason to support each child’s growth and development from an economic and social policy perspective, especially for families with fewer resources.

More resources spent on the child can improve educational qualifications and skills, which may boost their employment and earning prospects, he said.

Jennifer Heng, director of Safe Place, a charity that helps pregnant women in distress, said the cash benefits would ease the “immense financial stress” on most unwed mothers. Some raise their child on just their income, while others are not working as they may still be studying.

“A large majority of the women we work with did not become single mothers by choice. At times, they feel penalised as they do not get the same level of support as married mothers,” she said. 

For example, their partners are not willing to get married or take responsibility for the child, or the mother is still studying and not ready to be married, she said.

Most of the unmarried mothers she sees are in their teens or 20s, and come from a range of socio-economic backgrounds.

Natalie, a 35-year-old finance professional, said her ex-boyfriend does not want to have anything to do with her three-year-old daughter. He has not even seen the girl before.

Natalie (not her real name) said: “The child is innocent, and they cannot choose the circumstances of their birth. When they are excluded (from the benefits), it sends a signal that children from unmarried mothers are not as equally valued as other children. It was unfair.

“Now I feel this is fairer. And our children are valued as members of society, and every child is part of Singapore’s future. This should be the way.”

She is thankful for the SG Child Support Package, which will help to defray expenses.

Another single mother is Nur, 26, who has two daughters. Her older child is seven, while the younger one is nine-months-old.

Nur, who declined to give her full name, is currently unemployed and looking to re-join the workforce. She used to be in an accounting-related job, and is relying on her savings.

She said the SG Child Support Package would be a real help, given the high cost of raising a child in Singapore.

She said: “I’m a single mum, so everything is on me. I worry about what would happen if my money is not enough or what would happen if they fall sick.

“But I choose to have them, despite knowing how tough it would be.”