A bill to amend the Child Allowance Act, centered on expanding the age eligibility for the child allowance, passed the National Assembly Health and Welfare Committee.
The National Assembly Health and Welfare Committee held a full session on the 7th following the first subcommittee on bill review and approved the "Partial Amendment to the Child Allowance Act" by bipartisan agreement. Under the amendment, the age cap for the child allowance will be raised from under age 8 to under age 9 this year, and then increased by one year annually so that by 2030 it will be paid to those under age 13.
In addition, children living in areas with declining populations, excluding the greater metropolitan area and metropolitan cities, will receive an additional allowance ranging from 5,000 won to 20,000 won per month, to be implemented this year only. Although they are metropolitan cities, Busan's Dong District, Seo District, and Yeongdo District, and Daegu's Nam District and Seo District—which are classified as population-decline areas—were also included as recipients of the additional child allowance at the request of the People Power Party.
The People Power Party had opposed regionally differentiated payments on the grounds of universal welfare. As a result, although the related budget passed the National Assembly last year, the amendment to the Child Allowance Act, which provides the basis for executing the budget, had failed to clear the standing committee. The People Power Party and the opposition reached an agreement by including Daegu and Busan's population-decline areas as additional recipients and limiting the extra payments to this year only.
A provision that would allow local governments to add 10,000 won per child if the child allowance is paid in local currency was not included in this amendment due to opposition from the People Power Party.
There are still hurdles for the Child Allowance Act amendment to pass the National Assembly. It must pass a review by The National Assembly's Legislation and Judiciary Committee and then the plenary session. Because the child allowance is paid on the 25th of each month, the amendment must pass before then for children under age 9 to receive the allowance at the end of January. If the schedule is delayed, the Ministry of Health and Welfare plans to pay the unpaid amount retroactively in February.