A gap of 34 million won in childcare support per day... Government considers payment starting in January

(Seoul = Yonhap News) Reporter Seo Han-ki = The government is considering a plan to retroactively apply the parenting support benefit (Basic Child Allowance and Child Welcoming Subsidy) reform plan scheduled to be implemented in July of next year, starting from children born on January 1 of the same year.

If the original plan goes as planned, the childcare support for those born on June 30th and July 1st, whose birth dates are one day apart, could increase by up to 34 million won, sparking controversy over fairness.

The Ministry of Health and Welfare announced on the 14th that in the 'Main Work Progress Status' report submitted to the Health and Welfare Committee of the National Assembly, the budget was set to provide support starting from July 2027, taking into account the preparation period, etc. However, due to concerns raised about equity with children born before June, it is reviewing a plan to provide support starting from January.

This change in climate is the result of the controversy over the support gap that arose immediately after the announcement of the system and President Lee Jae-myung's instructions. The government reorganized the existing First Meeting Voucher, Parental Benefit, and Child Allowance into Child Welcoming Subsidy and Basic Children's Allowance, paying 10 million won for the first child, 12 million won for the second child, and 15 million won for the third child or older in four installments per quarter for one year after birth (additional support of 5 million won for preferential regions), and 200,000 won per month from 0 to 12 years of age (300,000 won for preferential regions). It was decided to establish a new basic children's allowance.

However, with the reference date set at July 1, 2027, a large gap arose between those born on June 30 and those born on July 1.

When looking at home childcare for the first child in the metropolitan area, the gap is clear. According to the existing system, a person born on June 30 will receive a total of 35.6 million won for 12 years, including 2 million won for a first meeting voucher, 18 million won in parental benefits (1 million won per month for 0-year-olds, 500,000 won per month for 1-year-olds), and 15.6 million won in child allowance up to age 12 (100,000 won per month for 156 months).

On the other hand, under the new system, a child born on July 1st will receive 10 million won in child support for the first year of birth, and 31.2 million won in basic child allowance of 200,000 won per month until the age of 12, plus 7.2 million won in additional home childcare for infancy (300,000 won per month for 24 months), for a total of 48.4 million won. Just because the child was born one day later, the total income increased by 12.8 million won.

When raising a third or higher child in a priority area for local population decline areas, this gap widens to 34.28 million won. Under the revised system, the third child in a preferential region receives up to 74 million won until the age of 12, including 20 million won in child support (basic 15 million won plus 5 million won in preferential region), 46.8 million won in basic child allowance paid at 300,000 won per month for 12 years, and 7.2 million won in home childcare surcharge.

On the other hand, the third child born on June 30, who is subject to the existing system, received only 39.72 million won for 12 years, including 3 million won in first meeting vouchers, 18 million won in parental salary, and 18.72 million won in child allowance in preferential areas (basic 110,000 won, including 10,000 won in local currency, 120,000 won per month for 156 months). You will incur a loss of over 34 million won.

Accordingly, at a cabinet meeting last month, President Lee pointed out, "As a baseline for administrative convenience, those born on June 30 and July 1 should not be discriminated against," and "Shouldn't children born in the same year be treated equally?"

Minister of Health and Welfare Jeong Eun-kyung also announced during the National Assembly discussion that she would consider retroactive application based on the year of birth through a supplementary provision to the law. Considering the time needed to build local governments and administrative computer networks, the government is considering launching the system in July 2027, but is looking at retroactive payments to children born between January and June.

The key is securing finances and legislation. To apply it retroactively from those born in January 2027, an increase in the budget of about 250 billion won is inevitable.

The Ministry of Health and Welfare plans to support the revision of the Child Allowance Act and the National Assembly's deliberation of the 2027 budget plan by December 2026, and to complete the development of the computer system and the maintenance of subordinate laws in the first half of 2027.