Connect with us


6 Things Singaporeans Need To Know About The $1.5 Billion Support Package To Provide Relief From Inflation

$100 utilities credit for all Singaporean households

As prices creep higher each month, Singaporeans are feeling the pinch in their pocket. For some, the increase of a few cents can feel like salt to a wound. To help Singaporeans, especially the lower-income and more vulnerable groups, the government has announced a $1.5 billion support package to provide relief from global inflation.

While the government had anticipated rising inflation and catered for measures in the Budget 2022 to cushion the impact of rising prices, the ongoing war in Ukraine and global supply chain disruptions have led to a sharper rise in inflation in many countries due to higher energy and food prices.

To tackle this issue, the government is taking a targeted approach with this $1.5 billion support package which will complement the Budget 2022 measures already announced. Here are the things that Singaporeans need to know about the $1.5 Billion support package

Read Also: Household Support Package & GST Voucher 2022: How Much Will Your Family Be Getting (And When)

#1 Every Singaporean Household Will Receive $100 Household Utilities Credit

To help offset utilities bill, a $100 Household Utilities Credit will be disbursed to every Singaporean household.

Unlike the GST Voucher (GSTV) – U-Save issued under the Household Support Package, this is not limited to HDB households. Instead, the only requirement to receive this $100 Household Utilities Credit is that the household must have at least one Singapore Citizen.

No application is needed to receive this $100 Household Utilities Credit as the credit will be automatically issued to the eligible households’ SP Group utilities account. This will be disbursed by September 2022.

Read Also: Step by Step Guide To Opening SP Utilities Account For Your New Home

#2 Eligible Recipients Will Receive Additional GSTV – Cash Special Payment Of Up To $300

Under the GST Voucher scheme, Singaporeans* aged 21 and above in 2022 with an income of not more than $34,000, living in a home with an Annual Value of not more than $21,000 and not owning more than one property would already be eligible for GST Voucher – Cash regular payout.

Under the $1.5 billion support package, these eligible recipients will receive another GSTV – Cash Special Payment of up to $300. About 1.5 million Singaporeans are expected to be eligible for the Special Payment and they will be notified of their payments in August 2022.

Source: MOF

* Note: To qualify for GSTV – Cash Special Payment, eligible recipients must be:

  • Singaporean aged 21 and above in 2022
  • Have an Assessable Income (AI) for Year of Assessment (YA) 2021 not more than $34,000
  • Reside in Annual Value (AV) of home (as indicated on NRIC) not more than $21,00
  • not own more than one property

#3 Permanent Increase To ComCare Short- to Medium-Term Assistance (SMTA) and Long-Term Assistance (LTA)

To provide on-going and continuing support for the lower-income and the elderly, the ComCare Short- to Medium-Term Assistance (SMTA) and Long-Term Assistance (LTA) will be enhanced from 1 August 2022.

For ComCare Long-Term Assistance (LTA), a one-person household will receive higher cash assistance of $640 per month. This is an increase of $40 from the current rate of $600 per month. Households with more members will receive more.

Under the ComCare Short- to Medium-Term Assistance (SMTA), higher cash assistance and support will be provided for their utility expenses. The amount of assistance will vary depending on the eligible household’s composition, needs and income.

To be eligible, applicants need to be Singapore Citizens (SCs) or Permanent Residents (PRs) who are unable to work due to old age, illness, disability or caregiving responsibilities and have little or no family support, savings or assets to rely on for basic living expenses.

For more information on ComCare, you can also reach out in person at a Social Service Office or apply directly at SupportGoWhere.

Read Also: Needy Singaporeans’ Guide To ComCare Fund Public Assistance Schemes And Eligibility

#4 Pensioners Who Draw Lower Pensions Will Receive More

Additionally, for pensioners who draw lower pensions, the Singapore Allowance and monthly pension ceiling will be enhanced by $30 each, to $350 and $1,280 respectively.

#5 Additional Support Is Also Provided For Taxi Drivers, Private Hire Drivers, Lower Wage Workers And Job Seekers

Aside from households and individuals, the support package is also extending support to affected groups of taxi drivers, private hire drivers, lower wage workers and job seekers.

Eligible taxi main hirers and active PHC drivers will receive $150 relief in August 2022 and no application is required to receive the relief.

Members of the National Delivery Champions Association, or National Private Hire Vehicles Association will be also eligible to apply for the NTUC U FSE Relief Scheme 2022 in August 2022. This one-time relief will be up to $300 for combi-buses, limousines and delivery drivers and up to $150 for delivery motorcycle riders. More details will be released in August 2022.

Meanwhile, the extension of the Jobs Growth Incentive (JGI) for another six months to March 2023 will help support employers to hire mature jobseekers who have not been working for at least six months, as well as persons with disabilities or ex-offenders.

Read Also: Guide To Understanding The Jobs Growth Incentive (JGI) For Companies Hiring Local Workers

The Government’s co-funding of eligible wage increases in 2022 under the Progressive Wage Credit Scheme (PWCS) will also increase from 50% to 75% for resident employees with gross monthly wages of up to $2,500 (first tier) and from 30% to 45% for employees with gross monthly wages of above $2,500 and up to $3,000 (second tier). This will help lower wage workers and their employers to uplift the pay of lower wage workers.

Read Also: Progressive Wage Credit Scheme (PWCS): What Businesses Need To Know

#6 No Draw On Past Reserves To Fund The $1.5 Support Package

Continuing the government’s fiscal prudence, the $1.5 billion support package will not draw down from Past Reserves. Instead, it is funded through the better-than-expected fiscal outturn for FY2021, arising from higher revenues due to the stronger economic recovery in 2021, and lower-than-budgeted spending on COVID-19 response measures as the Omicron variant turned out less severe than anticipated.

Read Also: Singapore’s National Reserves: What Is It And What Can They Be Used For?

Listen to our podcast, where we have in-depth discussions on finance topics that matter to you.