The Japanese government is considering expanding rent aid for child-rearing families and newlywed couples under its income redistribution policy.

The measure will be included in an economic stimulus package to be adopted by Prime Minister Fumio Kishida’s administration Nov. 19.

Rent subsidies are provided to households of elderly people, child-rearing families and newlywed couples who live in rental housing registered for such aid, on condition that their annual incomes stand below certain levels.

The current system pays a subsidy of up to ¥40,000 ($351) per month for a household of a couple with three children if its annual income is ¥4.95 million ($43,486) or lower. The ceiling will be raised to ¥6.46 million.

The system will pay the enhanced subsidies for up to six years to families with children and for up to three years to newlywed couples if they start to live in registered housing no later than fiscal 2026.

The government is also considering expanding its aid to child-rearing families moving into rental housing managed by the government-linked Urban Renaissance Agency to live near the homes of their parents or other close relatives.

At present, a rent discount of 5% up to ¥40,000 per month is provided to such families. The discount rate will be raised to 20%, effective for five years, for eligible families moving into Urban Renaissance Agency rental housing no later than fiscal 2026.

The economic package is also expected to call for public works spending of ¥2 trillion in the planned supplementary budget for fiscal 2021 and ¥6.1 trillion in the regular state budget for fiscal 2022 to add outlays for reconstruction of natural disaster-hit areas and the government’s five-year plan to make the country more resilient to such disasters.

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