2 In 2020, we raised the household income ceiling for means-tested Additional Subsidies from $7,500 to $12,000 and increased the quantum of Additional Subsidy across all eligible income tiers. In addition, we keep fees at Government-supported preschools affordable by imposing fee caps on Anchor Operators (AOPs) and Partner Operators (POPs). In January 2023, monthly fee caps for full-day childcare at AOP and POP centres were lowered by $40 to $680 and $720 respectively. With these moves, a median-income household with a child attending full-day childcare in an AOP centre would spend 3.1% of their household income on preschool in 2023, which is lower compared to 4.6% in 2019. We will further lower fee caps in government-supported preschools in 2025 and 2026, so that dual-income families with a child in full-day childcare in an AOP centre will eventually pay around the equivalent of primary school and student care fees, before means-tested subsidies.
3 We are also increasing the number of government-supported preschool places, which allows more families to benefit from these lower fee caps. By around 2025, 80% of preschoolers can have a place in a government-supported preschool. This is more effective than increasing the Basic Subsidy in enabling the vast majority of families to benefit from lower preschool OOP expenses.