To strengthen childbirth services and reduce the child-rearing costs for families with multiple children, on August 7, 2023, the Hangzhou Health Commission and Hangzhou Finance Bureau jointly issued the "Hangzhou Childbirth Subsidy Implementation Measures (Pilot)", which will take effect from September 10th.
The guidelines state that eligible maternity subsidy recipients are Hangzhou-registered pregnant women who, as a couple, are expecting their second or third child since January 1, 2023. Those expecting a second child will receive a one-time subsidy of ¥2,000, while those expecting a third child will get ¥5,000.
Child-rearing subsidies target families who have given birth to a second or third child since January 1, 2023, provided the child's registered residence is in Hangzhou. Families with a second child will receive a one-time ¥5,000 subsidy, and those with a third child will get ¥20,000. Multiple birth pregnancies are calculated based on the number of children born.
Back in late July, the Hangzhou Health Commission released a "Notice on Issuing Parenting Subsidies (provisional title)" and sought widespread public opinion. The differences between the final guidelines and the proposed version are minimal.
The measures emphasize that the purpose of these maternity subsidies is to ease the financial burden associated with prenatal care, childbirth, and postnatal recovery for families with multiple children. The child-rearing subsidies aim to support these families in purchasing infant products and childcare services, thereby reducing their parenting costs. The guidelines also underscore that subsidies for multiple births are determined by the number of children born. Applications for the subsidy must be made within 180 days of the child's birth, and any delay in application will be deemed a forfeiture.
In February 2023, during the Third Plenary Session of the Fourteenth Hangzhou Municipal People's Congress, the Hangzhou government unveiled a set of public welfare projects. The announcement detailed that Hangzhou would be issuing child-rearing subsidies to eligible families giving birth to a second or third child whose registered residence is in Hangzhou. Proposed subsidies were ¥5,000 for second children and ¥20,000 for third children.
On August 7, the Hangzhou Health Commission clarified that the city's governing body is committed to achieving a balanced population growth. They have prioritized "reducing the financial burdens of childbirth, child-rearing, and education." The approach includes supporting eligible families with medical care during pregnancy and childbirth, bolstering childbirth service guarantees, and offering financial support for child-rearing expenses to alleviate the costs for multi-child families.
According to a report from Zhejiang Daily, officials from the Hangzhou Health Commission have noted that since 2017, while the birth rate for first children in Hangzhou has remained stable, the proportion of second children being born has been steadily declining. This trend plays a significant role in the overall decrease in birth rates. "Recent studies indicate that the desire to have a second or third child among eligible citizens is noticeably low. The main deterrents include the financial and educational pressures of raising children. By targeting these families with financial assistance, the aim is to ease these burdens, boost confidence in child-rearing, and promote long-term balanced population growth."
The decision to disburse funds in a lump sum stems from the understanding that families face significant expenses following the birth of a child, including costs for maternity and child products and childcare services. Immediate disbursement can alleviate the financial strain these families experience, provide a greater sense of financial relief, and simplify the application process.
With a one-time payout of ¥20,000 to families with three children, Hangzhou has become one of the cities with the highest subsidies. Previously, Shenzhen in Guangdong Province had proposed a one-time childbirth subsidy of ¥10,000 for third children, along with an annual ¥3,000 child-rearing subsidy for three years, totaling ¥19,000, which was considered quite generous at the time.
Local media reported that Hangzhou's total child-rearing subsidy disbursement is estimated to be around ¥1.4 billion, benefiting approximately 25,000 families.
Regarding financial backing, the guidelines specify that both the maternity and child-rearing subsidy expenses will be covered by the respective districts or counties. The city's finance department will support child-rearing subsidy costs, providing up to 20% of the actual subsidy amounts granted by the districts or counties. These funds are included in the annual budget to ensure timely distribution.
