CHINA’S CASH-FOR-KIDS PLAN – The government unveils a 3,600 yuan baby bonus to boost birth rates
China is sounding the alarm on its rapidly shrinking population as the government unveiled a first-of-its-kind national cash incentive to tackle it. For the first time ever, parents across the country will receive an annual subsidy of 3,600 yuan — that’s roughly £375 or $500 — for every child under the age of three.
The policy, which took effect retroactively from the start of 2024, is set to benefit over 20 million families. It comes as the Chinese Communist Party ramps up efforts to boost a birth rate that’s been steadily declining — despite scrapping its controversial one-child policy nearly a decade ago.
Under the new scheme, parents can receive up to 10,800 yuan in total per child. And families with children born between 2022 and 2024 can still apply for partial payments. This move formalises what had previously been scattered efforts by local provinces to hand out cash rewards, with varying results.
Raising children in China is said to be expensive — staggeringly so. According to a study by the YuWa Population Research Institute, the average cost of raising one child to the age of 17 is a staggering $75,700. That puts China among the most expensive places in the world to start a family, especially when measured against income.
In a bid to ease the pressure, the government is also encouraging local authorities to implement free preschool education, recognising that high education costs are a major deterrent for young couples.
