SG Budget 2025: Enhanced financial support for Singaporeans to tackle rising living costs

In the Budget 2025 speech on February 18, Prime Minister Lawrence Wong introduced new financial support measures to help citizens cope with rising living costs. These initiatives planned for the financial year (FY) 2025 comprise eight key points, aiming to reduce household expenses, support education savings, and provide extra financial aid for lower-income groups.

S$800 in CDC Vouchers for every Singaporean household

Every Singaporean household will receive S$800 in Community Development Council (CDC) vouchers under Budget 2025 to help with daily expenses. The first S$500 will be given in May 2025, followed by the remaining S$300 in January 2026.

These vouchers can be used at hawker centres, heartland shops, and supermarkets, allowing families to stretch their budgets further. Past CDC voucher schemes have been widely used to offset grocery and dining expenses, making this a welcome financial relief for many households.

Up to S$760 in U-Save Rebates for eligible HDB households

To ease the burden of utility bills, eligible HDB households will receive up to S$760 in U-Save rebates over the FY 2025. These rebates, distributed quarterly, will help reduce electricity, water, and gas costs.

Smaller HDB flats may see a larger share of their utilities covered, providing much-needed financial support. Given recent fluctuations in global energy prices, this initiative ensures that households can better manage their monthly expenses under Budget 2025.

S$500 LifeSG credits for children aged 12 and below

Families with young children will receive additional financial support through Budget 2025. Every Singaporean child aged 12 and below in 2025 will get a S$500 top-up in their LifeSG account.

Parents can use these credits for child-related expenses, such as preschool fees, enrichment classes, and healthcare needs. This initiative highlights the government’s commitment to early childhood development and easing financial strain on young families.

S$500 top-up for Edusave or Post-Secondary Education Accounts

Students aged 13 to 20 will receive a S$500 top-up in their Edusave or Post-Secondary Education Accounts (PSEA) as part of Budget 2025’s financial support initiatives. These funds can be used for school-related expenses, including learning materials, tuition fees, and co-curricular activities.

By strengthening education savings, the government aims to help families better manage the costs of higher education and skill development.

Higher rates for ComCare Assistance schemes

More financial support will be available for low-income individuals and families through higher ComCare Assistance rates under Budget 2025. These increases will help cover essential expenses such as daily necessities, medical costs, and household needs.

The adjustments reinforce Singapore’s commitment to strengthening social support for vulnerable groups, including those facing unemployment or health challenges.

Increase in Singapore Allowance and Pension Ceiling

Retirees receiving the Singapore Allowance will see their monthly payments increase from S$350 to S$390 under Budget 2025. The monthly pension ceiling will also rise from S$1,280 to S$1,320. These adjustments ensure better financial support for senior citizens, helping them manage rising living and healthcare costs during retirement.

With these measures, Budget 2025 aims to provide targeted financial relief while strengthening financial security for Singaporean households. By addressing both immediate cost pressures and future needs, the government continues to prioritise economic stability and social support for all citizens.

Boost in climate vouchers to foster sustainable living

To inspire more individuals to adopt sustainable lifestyles, the government is enhancing its climate vouchers scheme, which enables Singaporeans to purchase a variety of energy- and water-efficient products.

With this improvement, Housing Board households will receive an extra S$100 in climate vouchers, increasing the total to S$400. These vouchers will be valid until December 2027, making it easier for families to invest in eco-friendly options.

Support for larger families

To encourage family growth, the Large Families Scheme has been introduced, benefiting those with three or more children:

• A S$5,000 increase in the Child Development Account First Step Grant for the third and subsequent child.
• A S$5,000 Large MediSave Grant, helping mothers offset pregnancy and delivery costs.
• S$1,000 in LifeSG credits per year for each third and subsequent child aged 1 to 6.

SG60 package: Celebrating Singapore’s 60th anniversary

In celebration of Singapore’s 60th birthday, an SG60 package has been introduced to share the nation’s progress with its citizens:

• SG60 Vouchers: All Singaporeans aged 21 and above will receive S$600 in SG60 vouchers. Those 60 and above will get an additional S$200, bringing their total to S$800.
• SG60 baby gift: Babies born in 2025 will receive a special commemorative gift. More details will be announced by early March.
• Business discounts & promotions: Various businesses will offer promotions and discounts as part of the national celebrations.

Other support measures:

Home Caregiving Grant Expansion

The grant for caregivers supporting seniors at home will increase from S$400 to S$600 monthly. The maximum qualifying per capita household income for eligibility has also been raised to S$4,800.

Enhanced Subsidies for Long-Term Care

Additional subsidies of up to 10 percentage points will be provided for home- and community-based care services. The Seniors Mobility and Enabling Fund will also see increased support to help cover the costs of essential healthcare items.

ComLink+ Financial top-ups

Families under the ComLink+ programme will receive additional financial support as they work towards long-term stability and home ownership.

Matched MediSave Scheme

A new five-year initiative will match voluntary MediSave contributions dollar-for-dollar, up to S$1,000 per year, for eligible lower-income seniors aged 55 to 70.

Personal income tax rebates

A 60% personal income tax rebate for the Year of Assessment 2025, capped at S$200, will benefit middle-income earners the most.

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