China has launched its first nationwide subsidy aimed at boosting birth rates, offering parents with children under three a maximum of £375 per child annually. The scheme aims to help around 20 million families with the cost of raising young children. With the policy, families can receive up to £1,500 for each child in their first year and up to £7,500 over the next eight years.
The move follows efforts by local governments to encourage people to have more children. Some cities, such as Hohhot and Shenyang, offer higher payouts of up to $100,000 per baby or $500 a month for families with multiple children. China is facing a looming demographic crisis due to its aging population and declining birth rate.
According to a recent study, raising a child in China costs an average of $75,700, making it one of the world’s most expensive places to have children. The country’s population has been shrinking for three consecutive years, with 9.54 million babies born in 2024. However, the government is hoping that this new subsidy will help boost birth rates and address its demographic concerns.
Source: https://www.bbc.com/news/articles/c776xgex02jo