Local governments pitch in to offset family expenses

A growing number of local governments in China have started providing operational subsidies to child care facilities and distributing consumption vouchers to families to bolster the growth of the nursery care sector.

Authorities in Sichuan province announced that starting Aug 30, affordable nursery care institutions can claim a monthly allowance of 200 yuan ($27.8) per admitted toddler to subsidize daily operations. Half of the subsidy funds will be covered by the provincial government, with the remainder paid by city and county authorities.

Shanxi province offers a monthly subsidy of 500 yuan per child for affordable nursery care agencies and 300 yuan for kindergartens providing care for those aged 3 and under.

The Beijing Economic-Technological Development Area, also known as Beijing E-Town, provides a 1,000-yuan monthly subsidy per enrollment for all affordable nursery care facilities and kindergartens. Some can also obtain a daily rental subsidy of up to 5 yuan per square meter.

Donggang district in Rizhao, Shandong province, gives a onetime payment of 20,000 yuan for each nursery class and an annual subsidy of 710 yuan for each slot. Outstanding nursery care institutions are awarded 50,000 yuan.

High operating costs have long hindered the sustainable development of the nursery care sector. Most nursery care institutions operate in leased commercial spaces, bearing expenses such as rent, labor and renovations independently.

According to a report delivered to the Standing Committee of the National People's Congress last year, rent and labor costs account for more than 75 percent of total revenue, leaving 70 percent of nursery care institutions unprofitable in recent years.

Zhuang Ning, head of the National Health Commission's department of planning and information, said at a June news conference that more than half of all provinces have listed nursery care development among livelihood improvement priorities.

"A total of 1,315 county-level regions across China have adopted construction or operational subsidies or consumption coupons to reduce the costs of nursery care services," he said.

Local governments have also issued consumption vouchers to motivate families hesitant about public nursery care services to give them a try.

Starting in June, Guangdong — China's most populous province, with more than 4 million children aged 3 and under — began issuing vouchers that provide either five- or 10-day nursery care experiences, or directly offset nursery care expenditures ranging from 500 yuan to 2,000 yuan.

Hainan province announced in July that it plans to release nursery care consumption coupons for toddlers aged 4 and under this year totaling 15 million yuan. Each coupon is valued at 200 to 600 yuan.

Wang Peng, a researcher at the Beijing Academy of Social Sciences, told China City Network that such coupons are expected to benefit low- and middle-income families, particularly rural and economically strained parents who may not have previously considered these services.

However, he added that long-term solutions are needed, including diversifying funding sources to ease the burden on local governments. He also stressed the importance of expanding services to rural areas, clarifying coupon terms to prevent extra charges and strengthening price supervision.

Lu Jiehua, a professor at Renmin University of China's School of Population and Health, said the slew of local policies supporting nursery care reflects a national effort to lower operating costs for child care providers and reduce burdens on families.

He added that further steps are needed to increase accessibility by locating facilities closer to families in need, preventing overpricing and ensuring safety and service quality.