Budget 2025: Up to S$16,000 more in support for third child and beyond under new Large Families Scheme
Separate one-off top-ups of S$500 in Child LifeSG Credits and Edusave Account for each Singaporean child
- Each third and additional Singaporean child will receive S$10,000 in their Child Development Account
- Parents will receive S$5,000 under new Large Family MediSave Grant
- Large Family LifeSG Credits will provide every third and additional Singaporean child with S$1,000 annually until child turns six
PARENTS of Singaporean children will receive up to S$16,000 more in support for their third or subsequent child, under a new Large Families Scheme introduced on Tuesday (Feb 18).
The support measures include the Child Development Account (CDA) First Step Grant which will be doubled from S$5,000 to S$10,000; a new Large Family MediSave Grant (LFMG) of S$5,000; and S$1,000 Large Family LifeSG Credits (LFLC) which will be disbursed annually for up to six years.
Families who have a third or subsequent child born on or after Feb 18, 2025, will benefit from the enhanced CDA First Step Grant and the LFMG. The LFLC credits are given annually for each third or subsequent child, till the child turns six.
In other words, parents with a child who turns six in 2025 will still receive S$1,000 in LifeSG credits this year.
“Couples with more children often worry about additional costs because the demands grow with each additional child,” said Finance Minister Lawrence Wong on Tuesday.
Around S$80 million per year is expected to be spent on the Large Families Scheme.
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Singapore’s resident total fertility rate, which refers to the average number of babies each woman would have during her reproductive years, has been on the decline for the past three decades. It fell to a historic low of 0.97 in 2023.
As part of measures to help families manage child-rearing costs, Singaporean children aged zero to 12 will receive S$500 in one-off Child LifeSG Credits, while those aged 13 to 16 will receive S$500 in their Edusave Account, and those aged 17 to 20 will receive S$500 in their Post-Secondary Education Account.
Wong, who is also prime minister, announced that the cap for childcare fees will be lowered for government-supported preschools. Monthly fees will be capped at S$610 for anchor operator centres and S$650 for partner operator centres.
After basic childcare subsidies, a dual-income family will pay about S$300 per child. Lower and middle-income families will pay less after additional subsidies, PM Wong said.
Noting that lower-income and vulnerable families face more challenges, he said that the Fresh Start Housing Scheme, which helps second-timer families with children living in rental flats to own their own homes, will be enhanced.
Previously, eligible families received a S$50,000 grant to buy a new two-room Flexi or Standard three-room flat on a shorter lease. The grant will be increased to S$75,000, PM Wong said.
The Fresh Start Housing Scheme will also be extended to first-timer families with children who live in rental flats. More details will be shared subsequently.
Child Development Account (CDA) First Step Grant
CDA funds can be used for approved child-rearing expenses including preschool fees and healthcare costs incurred by the child and his or her siblings. The disbursement is expected to begin from end-February.
Large Family MediSave Grant
The Large Family MediSave Grant will be credited into the mother’s MediSave account and can be used to offset her pregnancy and delivery expenses.
The S$5,000 grant can also be used for the medical bills and hospitalisation fees of approved dependants. It will be disbursed from mid-March.
Large Family LifeSG Credits
Parents are eligible for the Large Family LifeSG Credits for each of their third and subsequent children born on or after Jan 1, 2019.
Each child will receive S$1,000 per year between ages one and six. The credits can be used for groceries, utilities, pharmacy items and transport services.
They will be made available from September 2025 for existing eligible families.
Those who have a third or subsequent child born from 2025 will be able to access the credits in April each year from 2026.
For more Budget stories, visit businesstimes.com.sg/singapore-budget-2025
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