Budget 2021 Emerging stronger

Singapore households to get $900 million support package

It includes vouchers to help families defray expenses, as well as GST vouchers and S&CC rebates

Technician Alex Soh with his wife Fio Tan and daughters Jing Ting, eight, and Jing Sin (second from left), six. In total, the family of four will be receiving about $780 in assistance from the $900 million Household Support Package. ST PHOTO: GIN TAY

A $900 million Household Support Package will be introduced for families amid the uncertain economic situation in the wake of the Covid-19 pandemic, Deputy Prime Minister Heng Swee Keat announced yesterday.

The package includes vouchers that each household can use to defray expenses and support local businesses, as well as service and conservancy charge rebates and goods and services tax (GST) vouchers.

About 1.3 million Singaporean households will receive $100 Community Development Council (CDC) vouchers that can be used at participating heartland shops and hawker centres. More details on this will be announced by the CDCs later. To fund this, an additional grant of $150 million will be provided to the CDCs.

Mr Heng said the move is not only to thank all Singaporeans for their sense of solidarity, but also to continue supporting heartland businesses and hawkers.

"Singaporeans' sense of unity and discipline in observing the precautionary measures such as safe distancing and mask wearing has enabled our progress so far in combating the pandemic. The discipline and understanding of our local merchants and hawkers have also been important.

"However, they have been quite affected by the safety measures, especially during the circuit breaker," he noted.

Eligible Singaporean households in Housing Board flats will also receive rebates to offset service and conservancy charges over the year, said Mr Heng.

About 950,000 Singaporean households will be able to receive these rebates, which will offset between 1½ and 3½ months of the charges, over four quarters - in April, July, October and January next year.

About 1.4 million lower-income Singaporeans will also get an additional GST Voucher - Cash Special Payment of $200 in June, on top of the regular GST Voucher cash payout.

About 950,000 households will also get additional utilities rebates of between $120 and $200 under the GST Voucher - U-Save Special Payment that will be credited in April and July. This means they will receive 1½ times their usual annual rebate.

Singaporean children below the age of 21 will also get an additional $200 top-up to their Child Development Account, Edusave account or Post-Secondary Education Account which can help fund education-related expenses. This will benefit about 780,000 children.

  • Family of four to get nearly $800 in assistance

  • With his company planning to slow down production of sensors in the light of reduced demand in the coming months, Mr Alex Soh, 41, expects his earnings to be affected as he will be getting less pay for overtime work.

    Given the uncertain economic outlook, the technician said every little bit of additional support announced by the Government in Budget 2021 will help to defray costs for his family.

    In total, his family of four, which lives in a four-room Housing Board flat and has a monthly household income of about $4,000, will be receiving about $780 in assistance from the $900 million Household Support Package. His wife, 39, works part-time as a clerk.

    His daughters, who are in Primary 1 and Primary 3, will each receive a top-up of $200 in their Edusave accounts.

    His family will also get rebates to offset 2 1/2 months' worth of service and conservancy charges for the upcoming financial year, estimated at about $120.

    They will also have an additional utilities rebate of $160 under the goods and services tax (GST) Voucher - U-Save Special Payment, and $100 in Community Development Council vouchers which can be used at participating heartland shops and hawker centres.

    "As long as I have a job, we can still make ends meet. We try to be frugal and live within our means," said Mr Soh.

Mr Heng said the package comes on top of immediate relief and support measures introduced for families and workers over five Budgets last year, including the Solidarity Payment, Covid-19 Support Grant, Temporary Relief Fund and grocery vouchers for lower-income groups.

"This Household Support Package provides some support to all families, with lower-to middle-income families receiving more," he said.

Mr Heng also said Singaporeans have supported one another amid the pandemic, and stayed united in the face of adversity.

"Social cohesion does not happen naturally. Even before Covid-19, many societies were facing sharp divisions due to widening inequalities, increasing diversity of interests and voices, and growing distrust. The pandemic has deepened the cracks in many societies," said Mr Heng, adding that Singapore is not immune to these challenges.

"We must continue to strengthen our social fabric, and reject forces of division and discord."

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On Tuesday, Feb 16, Deputy Prime Minister Heng Swee Keat delivered his Budget statement. Our panel of experts breaks down what Budget 2021 means to Singaporeans.
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A version of this article appeared in the print edition of The Straits Times on February 17, 2021, with the headline Singapore households to get $900 million support package. Subscribe