Government Backtracks on Recipient of Childcare Subsidy|嬰幼托育政策轉彎 補助對象改為家長

In May, the Executive Yuan rolled out policies to provide greater public daycare services. Monthly subsidies of up to NT$6,000 were to be provided to childcare centers or nannies for every child aged zero to two under their care. After parents and civic organizations complained, Premier William Lai decided to grant the subsidy to households instead.


In May, Premier William Lai announced policies to expand public daycare services. To ease childcare costs, childcare organizations or nannies will receive monthly subsidies of up to NT$6,000 for every child aged zero to two under their care. However, the recipients of the subsidies are now changed to households following pressure from parents and civic groups, which said the policy would be more effective this way. The amount of the subsidy is still under discussion.

We are moving in the direction of having this payment go to households instead of nannies. However, the small details and the payment amount require further discussion.

Civic groups say the significance of shifting the destination of the subsidy is small, and the root of the problem is the lack of comprehensive childcare policies. For example, the government issued childcare subsidies for the first time in 2009. The amount was NT$3,000. In 2010, childcare costs rose by 13 percent. In 2013, they grew by 7 percent and in 2016, by 3.65 percent. Meanwhile, the salaries of parents could not keep up with this increase. Now, the government will hand out NT$6,000 subsidies, but they may not have an effect because childcare costs are still rising.

The government can hand out NT$6,000, but can it prevent childcare costs from rising? Can it keep costs down while handing out subsidies and ensuring the economic security of nannies? This is actually a very delicate balancing act.

The Awakening Foundation says the government needs to find a balance between addressing the childcare quality demands of parents and providing economic security to nannies. In this way, nannies will have income guarantees. It can also follow the example of Taipei and Taichung and strictly supervise nanny rates to ensure other costs will not be inflated.