For the first time, it is subsidising their nursery school fees. They can receive up to 90 per cent in subsidy, capped at a maximum of $65 a month.

At childcare centres, the subsidy is up to $20 more a month.

In addition, the monthly income ceiling of parents who can apply for these new subsidies has been raised: from $1,500 to $1,800.

The new measures, which will take effect in July, are expected to benefit about 8,500 children.

In total, 19,000 children will receive the subsidies next year, said Minister of State (Community Development, Youth and Sports) Yu-Foo Yee Shoon, when she announced the changes in Parliament yesterday.

'It will help to make pre-school affordable, so that every child has an opportunity to benefit from a good education,' she said during the debate on her ministry's budget.

The current government subsidy is for kindergarten fees of children from families with a monthly income of $1,500 or below.

Given through the Kindergarten Financial Assistance Scheme (KiFAS), it is open to children attending eligible non-profit kindergartens.

From July, this scheme will be extended to nursery-going children.

The childcare subsidy from the Centre-based Financial Assistance Scheme for Childcare (CFAC), will be for Singaporeans aged below seven.

But the child, whose mother has to be working, must be in a licensed childcare centre. The subsidy is given up to the fourth child in a family.

The new subsidy was welcomed by Mr Lee Kim Seng, 35, whose four-year-old daughter is in nursery school. He pays $105 a month in fees. The family's monthly income is $1,200.

With the new subsidy, he will pay $40 a month. 'The $65 savings will help me pay for the medical fees of my other child, who has kidney problems,' said Mr Lee, an odd-job labourer.

Also in the pipeline are plans to build more childcare centres.

There are now more than 700. But in the next five years, 100 more centres will be opened, said Minister for Community Development, Youth and Sports Vivian Balakrishnan.

ghimlay@sph.com.sg