China's Local Governments Boost Child Care with Subsidies and Vouchers

A growing number of local governments in China are implementing measures to support the development of the child care sector. These initiatives include providing operational subsidies to child care facilities and distributing consumption vouchers to families.

In Sichuan province, affordable nursery care institutions can claim a monthly allowance of 200 yuan per toddler, starting August 30th, to help with daily operations. The provincial government will cover half of the subsidy, with the remaining portion 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 caring for children aged three and under. The Beijing Economic-Technological Development Area provides a monthly subsidy of 1,000 yuan per enrollment for all affordable nursery care facilities and kindergartens, with some also eligible for a daily rental subsidy. Donggang district in Rizhao, Shandong province, offers a one-time payment for each nursery class and an annual subsidy per slot, with additional awards for outstanding institutions.

The high costs of operation have long been a challenge for the sustainable development of the nursery care sector. Most institutions operate in leased commercial spaces, independently covering expenses such as rent, labor, and renovations. According to a report, rent and labor costs account for over 75 percent of total revenue, leaving a significant portion of nursery care institutions unprofitable in recent years.

Government officials have noted that over half of all provinces have prioritized nursery care development as part of their livelihood improvement efforts. Across China, a large number of county-level regions have adopted construction or operational subsidies or consumption coupons to reduce the costs of nursery care services.

Local governments are also issuing consumption vouchers to encourage families to utilize public nursery care services. Guangdong, China's most populous province, began issuing vouchers in June, offering nursery care experiences or directly offsetting expenditures. Hainan province plans to release nursery care consumption coupons for toddlers this year.

Experts suggest that these coupons are expected to benefit low- and middle-income families, especially those in rural areas. However, long-term solutions are needed, including diversifying funding sources, expanding services to rural areas, clarifying coupon terms, and strengthening price supervision.

The local policies supporting nursery care reflect a national effort to lower operating costs for child care providers and reduce burdens on families. Further steps are needed to increase accessibility by locating facilities closer to families in need, preventing overpricing, and ensuring safety and service quality.