An allowance for each child up to the third grade at middle school is a main promise in the Democratic Party of Japan's election manifesto. The party plans to make the monthly ¥26,000 allowance a permanent measure. The Hatoyama administration plans to give half the amount, or ¥13,000, in fiscal 2010, the first year of the measure, and give the full amount from fiscal 2011.
The welfare ministry estimates the allowance will cover about 17.35 million children in fiscal 2010, requiring a budget of ¥2.33 trillion. From fiscal 2011, the budget will increase to ¥5.3 trillion.
At present, there is a similar monthly allowance of ¥5,000 to ¥10,000 covering children up to the sixth grade at primary school. An annual income cap is imposed on households' eligibility for the current allowance. It is set at ¥8.6 million.