A Study on the Eligibility for Childcare Subsidy for 2011
The changes made in July 2009 to the eligibility for childcare subsidy have expanded the beneficiaries to the families with babies at the bottom 50% of income. There have also been changes made to the eligibility for special subsidy for childcare and to the amount of the subsidy. Following these changes, in accordance with the “2nd Basic Plan for Low-fertility and Aging Society” promulgated in September 2010, free childcare services have become available for families with babies at the bottom 70% of income from 50% before. Consequently, the need to change the eligibility applied from July 2009 through 2010 has been raised to reflect changes in property values and income increases.
This study is aimed at calculating the level of income to be eligible for free childcare services by analyzing adjustments made to eligibility criteria for free childcare services and using the current income assessment method for eligible families with babies. This study analyzes various applications of available income deductions resulting from the extension and changes made in 2011 in the rules for income deductions for two-income households that had been implemented since 2010. Also, recommendations on improving eligibility for childcare subsidy in the light of the changes made to the information infrastructure including the “Integrated Social Welfare Management Network” – Haengbok-e-uhm – established in 2010. We hope that the analyses and calculations carried out in this study for eligibility criteria for childcare subsidy will help improve the efficiency and accuracy of policy implementation, and will serve as a basic data for later studies on determining new eligibility criteria for and applications of expanding childcare subsidy and differentiation of selection methods.