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Child Development Account helps families with the cost of raising children

The Child Development Account (CDA) is part of the Baby Bonus Scheme, which aims to help families with the costs of raising children.  The Government regularly reviews the CDA scheme.  It has been refined over the years to provide more support to parents by increasing the Government co-savings amount as well as expanding the areas where the CDA funds can be used. 

CDA funds can only be used at MSF-registered approved institutions to ensure that the funds are used for its intended purposes.  To date, there are about 800 healthcare providers and 60 private Early Intervention Programme  providers registered and the ministry conducts regular outreach to encourage more providers to sign up.  Mdm Chan may wish to source for a registered clinic that will meet her grandchild’s needs.  We would also like to clarify that some providers do provide intervention services for children up to 18 years. You may wish to contact the Centre for Enabled Living (1800-8585885) for assistance in identifying suitable services for your grandchild. 

Since 1 July 2012, Child Care centres, Kindergartens, Early Intervention Programmes and Special Education Schools can utilise CDA funds to cover indirect education expenses such as transport and uniforms. Centres normally bundle such expenses in their overall fees to enable deduction of CDA funds. However, we understand that some transport operators do not bundle their transport fees with the centres as they still prefer cash payments.  These enhancements are new and will take some time to implement on the ground.  MSF will continue to encourage more centres to work with their operators to tap on CDA funds for these expenses.   

We thank Mdm Chan for her feedback on the baby bonus system.

Ms Carol Chua
Director, Family Services
Ministry of Social and Family Development

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