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In an effort to reverse declining birth rates, China is introducing its first nationwide subsidy, offering parents 3,600 yuan (£375; $500) annually for each child under the age of three. The handouts are expected to help around 20 million families with the cost of raising young children, state media reports. This comes after the ruling Communist Party abolished its one-child policy almost a decade ago.
Several provinces across China have piloted some form of payouts to encourage people to have more children as the world's second largest economy faces a looming demographic crisis.
The scheme, which was announced on Monday, will offer parents a total of up to 10,800 yuan per child. The policy will be applied retroactively from the start of this year, Beijing's state broadcaster CCTV said.
Families with children born between 2022 and 2024 can also apply for partial subsidies.
The move follows efforts by local governments to boost birth rates in China. In March, Hohhot - a city in the northern region of China - started offering residents up to 100,000 yuan per baby for couples with at least three children. Shenyang, a city northeast of Beijing, offers 500 yuan a month to local families with a third child under three.
Last week, Beijing also urged local governments to draft plans for implementing free preschool education.
The country is among the world's most expensive places to have children, in relative terms, according to a study by China-based YuWa Population Research Institute. Raising a child to the age of 17 in China costs an average of $75,700, the study found. The country's 1.4 billion population is also aging fast, adding to Beijing's demographic concerns.
In January, official figures showed that China's population fell for a third year in a row in 2024. China recorded 9.54 million babies born in 2024, according to the National Bureau of Statistics. That marked a slight increase from the year before but the country's overall population continued to shrink.
