China Offers $1,500 Incentive to Parents in National Push to Boost Birth Rates

China is offering parents an annual subsidy of 3,600 yuan (approximately £375 or $500) for each child under the age of three. This government-backed program marks China’s first national effort to financially support families and encourage childbirth.

Despite ending its decades-long one-child policy nearly 10 years ago, the country continues to struggle with a falling birth rate. The new scheme, aimed at easing the financial burden of child-rearing, is expected to benefit around 20 million families, according to state media.

Under the policy, parents could receive up to 10,800 yuan (roughly $1,500) per child. The subsidies will be applied retroactively from the start of 2024, with families who had children between 2022 and 2024 also eligible for partial support.

This national move builds on earlier local efforts to stimulate population growth. For instance, Hohhot, a city in northern China, began offering couples with three or more children up to 100,000 yuan per baby in March. Similarly, Shenyang, northeast of Beijing, provides 500 yuan monthly for families raising a third child under age three.

Additionally, Beijing has urged local authorities to roll out plans for free preschool education, further demonstrating the central government’s focus on reversing demographic decline.

According to the YuWa Population Research Institute, China is one of the world’s most expensive places to raise children. The average cost of raising a child to age 17 is estimated at $75,700. This high expense continues to be a major deterrent for many potential parents.

Recent data from the National Bureau of Statistics showed that China recorded 9.54 million births in 2024 — a slight increase from the previous year — but the overall population still declined for the third consecutive year. With a rapidly ageing population and shrinking workforce, Chinese authorities are under growing pressure to tackle the looming demographic crisis.