Free preschool policy targets to support 12 million children

China’s phased free preschool education policy is set to benefit around 12 million children in the upcoming autumn semester, easing the financial burden on families by approximately 20 billion yuan (about $2.8 billion), according to a senior finance official.

Guo Tingting, vice minister of finance, detailed that the policy exempts all children in their final year of kindergarten from paying care and education fees, regardless of whether they attend public or private institutions, or live in urban or rural areas.

As cited in media reports, the fee waiver is based on government-approved rates for public kindergartens, with private institutions allowed to charge families the difference if their fees exceed local public kindergarten standards.

For instance, if a public kindergarten charges 500 yuan per month and a private one charges 800 yuan, families with children in the final year at public kindergartens will pay nothing, while those at private kindergartens will pay the 300 yuan difference.

Guo described the policy as a milestone for preschool education, designed to improve livelihoods, promote education equality, support balanced population development, and encourage a birth-friendly society.

She noted the recently introduced subsidies for families with children under three years old will complement this policy by further reducing childbearing and rearing costs.

The central and local governments will jointly cover the costs, with the central government paying 80 percent in western regions, 60 percent in central regions, and 50 percent in eastern regions. The Ministry of Finance will closely monitor the policy’s rollout and work with the Ministry of Education to adjust it as needed, based on enrollment trends and government finances.

Xu Liuqing, director of the Ministry of Finance’s Department of Science, Education and Culture, said funds will be allocated soon to ensure smooth implementation without disrupting kindergarten operations.

Government spending on preschool education has surged from 86.2 billion yuan in 2013 to 315 billion yuan in 2023, growing annually by 13.8 percent. The gross enrollment rate reached 92 percent in 2024, matching high-income countries’ averages, said Liu Yuguang, director of the Ministry of Education’s Department of Finance. MDT