How can Japan solve the national problem of declining birthrate?

The Overall Picture of Marriage, Childbirth, and Child-rearing Support Policies

Japan's support measures can be broadly divided into the following eight categories:

1. Marriage Support

• Marriage New Life Support Subsidy: A system that subsidizes housing and moving costs for newly married couples. The maximum subsidy is 600,000 yen for couples both under 29, and 300,000 yen for others.

2. Childbirth Support

• Lump-sum Birth and Child-rearing Allowance: A one-time payment from health insurance upon childbirth. The amount is 500,000 yen per child (increased from April 2023).

• Maternity Check-up Fee Subsidy: Local governments subsidize the cost of maternity check-ups. The cost for 14 check-ups is covered, but the exact amount varies by municipality.

• Childbirth and Child-rearing Support Grant: Financial support for purchasing childcare products, provided after the submission of a pregnancy notification and a post-birth interview. The total amount is equivalent to 100,000 yen per child (a 50,000 yen grant given twice).

3. Child-rearing Support

• Child Allowance: Paid to households raising children from age 0 to 18 (until high school graduation). From October 2024, the income limit will be abolished, and the eligibility will be expanded to high school students.

  • Under 3 years old: 15,000 yen/month

  • 3 years old to elementary school: 10,000 yen/month (15,000 yen for the third child and beyond)

  • Junior high school students: 10,000 yen/month

  • High school students: 10,000 yen/month

• Child Medical Expense Subsidy: A system that makes medical expenses for children up to age 18 free or partially subsidized.

• Free Preschool Education and Childcare: Free admission fees for kindergarten, nursery schools, and certified daycares for children aged 3 to 5. Households exempt from resident tax with children aged 0 to 2 are also eligible.

4. Infertility Treatment Support

• Expanded Health Insurance Coverage for Infertility Treatment: From April 2022, treatments such as in vitro fertilization and artificial insemination became covered by public health insurance, significantly reducing the financial burden. The self-payment ratio is, in principle, 30%.

5. Parental Leave Support

• Parental Leave Benefits: A system to supplement income during parental leave. 67% of the salary is paid for the first six months of leave, and 50% thereafter.

• Male Parental Leave (Postpartum Paternity Leave): A system allowing fathers to take up to four weeks of leave within eight weeks of their child's birth.

6. Support for Families Facing Difficulties

• Child Rearing Allowance: Paid to single-parent households. For one child, the amount ranges from 10,410 to 43,160 yen per month, depending on income.

• Special Child Rearing Allowance: Paid to households raising children under 20 with a disability. The amount is 55,350 yen/month for Class 1 disabilities and 36,860 yen/month for Class 2.

• Disability Basic Pension for Those under 20: Paid from age 20 if the disability was present before that age. The annual amount is 1,025,100 yen for Class 1 and 820,200 yen for Class 2.

7. Housing and Education Support

• Flat 35 Child-rearing Support Type: When child-rearing households use this housing loan, the interest rate is reduced by 0.25% for the first five years.

• New System for Higher Education Support: University tuition and admission fees are reduced or made free for students from multi-child households.

Fiscal Foundation and Budget Scale

These support measures are funded by the national and local government budgets. The initial budget for the Children and Families Agency in fiscal year 2024 amounts to approximately 4.1457 trillion yen, combining the general and special accounts. Specifically, about 1.5246 trillion yen is allocated for the expansion of the Child Allowance, and 62.4 billion yen for the Childbirth and Child-rearing Support Grant.

The funds are expected to be secured through existing spending reforms and an additional social insurance premium called the "Child and Child-rearing Support Fund." A plan is in place to collect an annual fund of 1 trillion yen by fiscal year 2028.