Japan to pay child-rearing families millions to shift from Tokyo to rural areas

The Japanese government this year will increase the financial aid for child-rearing families moving from the capital Tokyo’s metropolitan area to rural areas with declining birthrates and an ageing population.

As per an Asia Nikkei report, the financial support stands to be raised up to 1 million yen ($7,500) per child from the current 300,000 yen ($2,314). The programme which was launched in the year 2019, encourages families with children to move to areas with low, ageing populations. 

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People who have resided in 23 wards of Tokyo for more than five years in the last decade are eligible for this aid. Also eligible are parents who have been commuting to these wards from other areas in Tokyo during the same time frame. 

Every household of movers will in principle receive one million yen. The financial aid increases with every child by an additional 300,000 yen. 

This aid is conditional on meeting one of three conditions: if they remotely continue with the same work they did prior to re-location, they get employment in a small or midsize company in the area they relocated to or start a new business there.

Starting in April, a couple with two children will be eligible for up to three million yen, which will not be subject to an income test for support.

Applicants have to report to the local government within three months to one year of moving and must live in the relocated area for at least five years. If they move before the end of that period, they’ll have to return the aid.

In the fiscal year 2021, 1,184 families availed of this benefit, up from 290 in 2020 and 71 in 2019. 

The new strategy which is an update to the 2019 scheme was adopted during a cabinet meeting on Friday. Under it, the government plans to bring the number of movers to 10,000, which will be achieved in five years from fiscal 2023.

(With inputs from agencies)

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