Japan: Revised Child Support Law Passed, Support Fund Collection to Start in FY2026
Japan has passed the revised Child and Childcare Support Law, which includes measures to expand support for households with children. The law abolishes the income limit for child allowance and creates a support fund system to finance the increased spending. The bill was passed by a majority vote in the House of Councilors plenary session on June 5, 2024.
Details:
The child allowance payment period will be extended from "up to junior high school students" to "up to high school students."
The additional amount for the third and subsequent children will be doubled.
The "anyone can attend childcare system" will be implemented nationwide, allowing children to use daycare centers regardless of their parents' employment status.
The government aims to secure 3.6 trillion yen in financial resources by FY2028, with the support fund covering 1 trillion yen.
The support fund will be collected in stages from FY2026, in addition to public health insurance.
By the numbers:
Average monthly burden per person (FY2028) for employee insurance: 800 yen
Health insurance associations for employees of large companies: 850 yen per insured person
Mutual aid associations for public servants: 950 yen per insured person
Annual income of 6 million yen: 1,000 yen
Annual income of 8 million yen: 1,350 yen
Medical care system for the elderly aged 75 and over: 350 yen per person
National health insurance for self-employed people: 600 yen per household
Yes, But: Opposition parties argue that the support fund will burden the public more, despite the government's claims that expenditure reforms will offset the costs. Makoto Oniki of the Constitutional Democratic Party criticized the fund in a dissenting discussion at the plenary session of the House of Councillors on June 5, stating, "It is nothing more than a system that takes from where it is easy to take to avoid criticism of tax increases."
That said: Other countries, such as the United Kingdom, France, the United States, etc, have taken past measures to reduce or eliminate (rather than expand) child benefits to reduce the public burden.
Background:
The government has decided on an action plan for child measures to promote measures against declining birth rates and poverty.
The support fund is intended to help the government secure financial resources to enhance family support.
Bottomline: While the revised Child Support Law aims to enhance support for child-rearing households, the introduction of the support fund system has raised concerns about the potential financial burden on the public. It remains to be seen whether the public will understand and accept the government's explanation that there will be no actual burden due to expenditure reforms and other measures.
