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She noted it is currently best not to open up CDA funds for enrichment programmes offered outside of preschools.
Earlier this year, the scope of Child Development Account (CDA) funds was expanded to help cover preschool incidental charges stipulated in the Early Childhood Development Centres (ECDC) Regulations 2018, including optional enrichment programmes offered in-school.
On behalf of Prime Minister and Minister for Finance Lawrence Wong, Minister in the Prime Minister’s Office and Second Minister for Finance and National Development, Indranee Rajah, tackled a Parliamentary query on whether the scope of usage of CDA funds can be further expanded, especially for lower-income households.
She responded that the expansion of the scope of CDA was aimed to provide more financial support for preschoolers to fully tap on the learning opportunities offered by their preschools, which is similar to that of how students can tap on their Edusave for enrichment programmes organised by their schools.
"To safeguard the use of CDA funds for preschool fees and incidental charges, it is not advisable to open up CDA funds for enrichment programmes offered outside of preschools," she stressed.
To note, the following is the list of approved CDA incidental charges for payment through the CDA:
(i) uniform and any other attire
(ii) insurance coverage for a child who is enrolled in the centre
(iii) transporting a child from his or her home to the centre, or from the centre to his or her home, or both
(iv) attending field trips and excursions outside the centre, including the cost of meals for the child and the cost of transporting a child to the venue of such field trips and excursions
(v) participating in concerts organised by the licensee, including graduation ceremonies
(vi) photographs and videos taken of the centre’s children and events
(vii) maintaining online communication tools and systems between the licensee and the parent or guardian of a child
(viii) enrichment programmes
(ix) e-learning materials
(x) where the centre provides half-day services — (A) readers, academic materials, stationery, school bags and folders, and art and musical materials used in providing those services; and (B) meals that are provided to children
(xi) where the centre is a full-day service centre, use of a mattress, mattress cover or stack cot
(xii) where the centre conducts any infant class, the diapers, nappy rash cream, milk bottle, milk powder, cot bedding and any other item which may be consumed or used by a child.
Addressing the second query on applying means-testing to future CDA fund top-ups, Minister Indranee affirmed that the CDA top-ups already are a broad-based measure to help families with their cost of child-raising.
She added: "Lower-income families may receive further means-tested subsidies, such as additional preschool subsidies. Lower-income households who require additional financial support may also approach Social Service Offices for financial assistance".
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