Unconditional Cash Support Boosts Job Security and Well-Being for Singapore’s Low-Income Families: AWWA

SINGAPORE: AWWA’s Family Empowerment Programme has shown that no-strings-attached cash assistance can effectively improve the lives of low-income families in Singapore, countering concerns that such funds might be misused or reduce work motivation. Through monthly cash payouts of $300 to $550, distributed to 75 disadvantaged households between May 2022 and November 2023, the program helped stabilize family incomes, improve mental health, and boost job security.

One beneficiary, 37-year-old mother of five, Ms. Irawati, saw a marked improvement in her circumstances after beginning to receive $550 each month. Facing challenges from her husband’s unpredictable income as a delivery rider, the financial support enabled her to pursue full-time employment as a cleaner, transforming her family’s outlook and stability.

The Family Empowerment Programme, a pioneering initiative in Singapore, allowed recipients autonomy over how they spent the funds. By relieving financial stress without conditions, the program saw improvements, with 60% of participants reporting reduced psychological distress compared to 36% in a control group. Employment prospects also rose: 27% of cash recipients felt secure in their jobs, an increase from 15% in the control group.

The program’s success was celebrated on July 17, with President Tharman Shanmugaratnam and First Lady Jane Ittogi in attendance. AWWA’s director of family services, Ms. Huixia See Toh, highlighted the program’s focus on empowerment and research-backed benefits of financial autonomy. As families met outcomes related to education, skills, and employment, Temasek Trust pledged an additional $750,000 to continue support into a second phase.

Many participants echoed Ms. Irawati’s sentiments, noting how the program renewed hope, allowed healthier meal choices, and provided tools to boost family well-being. Tri-Sector Associates CEO Kevin Tan emphasized the program’s positive effect on mental health, while NUS’s Dr. Ng Kok Hoe added that cash transfers build autonomy and dignity by showing trust in recipients’ decisions.

“I could finally tell my kids, ‘Yes, we can go out to eat, and yes, I can buy you this,’” said Ms. Irawati, who found motivation to work harder and help others.