SINGAPORE, Dec 16 — The number of lower-income families receiving support under a key government financial aid scheme fell to its lowest level in five years in 2024.

According to a report by The Straits Times, 20,825 families were on the ComCare Short-to-Medium-Term Assistance (SMTA) scheme last year, down 9 per cent from 22,960 families in 2023.

The Ministry of Social and Family Development (MSF) said in its Supporting Lower-Income Households Trends report that the decline reflected “an expansion in the economy and labour market from 2020 to 2024.”

The report also noted that other government measures such as the Assurance Package, which provides cash, CDC vouchers and other benefits to cushion the goods and services tax increase, contributed to the fall in SMTA numbers.

Families on the scheme received a median monthly payout of S$380 (RM1,204) per beneficiary in 2024, with assistance lasting a median of six months.

About 49 per cent of households that left the SMTA scheme in 2021 returned within three years for another round of support.

The report stated, “While some SMTA households experience only temporary shocks to their financial circumstances, others face complex issues that require a longer time to resolve.”

Social service agency Allkin Singapore chief executive Fareez Fahmy said lower-income families often have “thin buffers” such as limited savings, making them vulnerable to setbacks like illness or job loss.

Government spending under the SMTA fell to S$94 million in 2024, compared with S$105.1 million in 2023.

The Long-Term Assistance (LTA) scheme, which supports seniors and those unable to work, also recorded its lowest numbers in five years, with 3,240 families receiving aid in 2024.

The report attributed the decline to seniors working longer, younger cohorts having more savings, and expanded social support schemes.

A one-person household on the LTA scheme receives S$760 monthly.

Associate Professor Chia Ngee Choon from the National University of Singapore said policies such as the Retirement and Re-employment Act and the Silver Support Scheme have helped improve retirement adequacy.

Chia added that the fall in SMTA and LTA numbers suggests these policy interventions have been effective.

The report also showed that after adjusting for inflation, income growth was stronger among the bottom 20 per cent of families compared with the median household.

For example, the bottom 10 per cent saw average real income growth of 3.2 per cent, compared with 0.8 per cent for the median household.

Chia said the larger gains for lower-income families may be linked to initiatives such as the Progressive Wage Model and enhancements to the Workfare Income Supplement.