Government Provides Enhanced Support for Cost-of-Living Challenges in Singapore
In response to cost-of-living concerns and economic uncertainties, Singapore’s government is injecting an additional S$1.9 billion into the Assurance Package (AP) to support residents. Finance Minister Lawrence Wong announced these enhancements as part of Budget 2024, aiming to help households manage financial pressures.
The key features of the enhancements include the distribution of S$600 worth of Community Development Council (CDC) vouchers to every Singaporean household. These vouchers will be given in two equal tranches of S$300, the first of which will be issued at the end of June 2024, and the second in January 2025. The vouchers can be used at participating merchants, hawkers, and supermarkets.
Additionally, eligible Singaporeans will receive a one-off cost-of-living special payment of between S$200 and S$400 in cash, based on income criteria. This payment will be made in September 2024.
The government will also extend one-off U-Save rebates to households living in Housing and Development Board (HDB) flats. These rebates will be provided in four tranches starting in April 2024, amounting to up to 2.5 times the usual U-Save amount, or up to S$950.
Furthermore, to help with service and conservancy charges (S&CC), the government will offer a one-off rebate equivalent to 0.5 months of S&CC, to be given in January 2025. In total, eligible HDB households will receive up to four months of S&CC rebates in FY2024.
As part of the Budget, the government also reiterated its commitment to permanently offset Goods and Services Tax (GST) costs for lower and middle-income households. The GST Voucher fund will be topped up by S$6 billion to help achieve this goal.
