Financing for equity in pre-primary education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students and families
4. Social policies and family support programmes
Introduction
Key financing indicators (UIS Data)
In Japan, the official entrance age to pre-primary education is three years old. Three years of free pre-primary education are granted in legal frameworks. The net enrolment rate for pre-primary for both sexes in 2023 was 95.91%.
Governance
There are two main types of Early Childhood Care and Education institutions (ECCE) in Japan, kindergartens (youchien) and nurseries (hoikujo). Kindergartens serve children aged three to six years old, while nurseries are for all children under 6. Kindergartens are managed by the Ministry of Education, Culture, Sports, Science and Technology (MEXT), with a more education-focused curriculum. Nurseries are managed by the Ministry of Health, Labor and Welfare (MHLW) and are more focused on childcare. In 2006, the central government introduced an integrated system called ECCE Centres (nintei kodomoen) for children under six. There are also community-type childcare services (chiiki-gata hoiku) which are licensed at the municipal level. In 2023, the central government established the Children and Families Agency to help centralise certain aspects of ECCE under one umbrella.
Tuition-free status
As of October 2019, children ages 3 and up can attend kindergarten for free. Prior to that age, acceptance into nurseries or ECCE centres may be limited to families whose parents are both working.
1. Education resources to subnational governments
Japan’s largest intergovernmental transfer is the Local Allocation Tax (LATG, jichi-zei futan zeikin), a general-purpose grant that redistributes national tax revenues from the central government to prefectures and municipalities to equalise fiscal capacity (For more information, see Japan’s PEER profile on Financing for Equity).
The Ministry of Education, Culture, Sports, Science and Technology (MEXT) supports local governments with additional funds to help improve the quality of early childhood education (ECCE). For FY 2026, MEXT has several programmes planned for ECCE. For example, JPY 600 million will be distributed to help bridge programmes between nurseries, kindergartens, and elementary schools. A total of JPY 5.5 billion is earmarked for the Educational Support System Development Project Grant, which seeks to improve the educational environments of ECCE for both public and private facilities. The national government also helps to subsidize the prefectures which are subsidizing private facilities for the education of students with disabilities.
MEXT’s 2026 budget also includes JPY 55.5 billion to be used to subsidise local governments that are implementing projects to help secure more childcare personnel. For example, local governments can receive JPY 5.2 million to help cover the expenses of those aiming to become childcare workers.
The Ministry of Health, Labour and Welfare (MHLW) distributes the preschool education and childcare facility development grant. This grant covers the establishment, repair, remodeling, or maintenance of many pre-primary institutions that are under the MHLW purview. These subsidies are provided to municipalities based on their development plans.
2. Education resources to institutions
The financial burden of providing free ECCE is divided between local and national governments. The national government is responsible for ½, prefectural for ¼, and municipal for the final ¼. Funds for public ECCE primarily come from the municipal level since the funds come from an increase in the local consumption tax revenue.
There are several subsidies available for ECCE centres, such as the ICT promotion project. At the national level, no funding mechanisms that support equity for certain groups were found.
3. Education resources to students and families
In 2019, the government of Japan waived the tuition fees for ECCE institutions for all children from three to five years old. For children between the ages of 0 and 2, low-income families who are exempt from resident tax are tuition-free. Families with multiple children may also benefit from reduced or free tuition fees. Children who need additional developmental support for disabilities also receive these services free of charge. Families who need Kindergarten after-school care may receive up to JPY 11,300 for these services. Additionally, children from low-income families receive free side dishes and snacks during school hours.
In locations without licensed childcare facilities, families can apply for monetary support to help pay the tuition of local unlicensed childcare facilities. Monthly fees for children aged 3 to 5 amounts to JPY 37,000 while those for children under 3 receive up to JPY 42,000.
Prior to 2019, families were able to use the Assistance for Kindergarten Fees financial assistance programme. The government subsidised municipalities for this programme.
4. Social policies and family support programmes
The Japanese government provides a child allowance for all children from birth until the age of 18, with eligibility extending until 31 March following the child’s 18th birthday. The allowance is universally available, as income limits were removed in October 2024; however, families exceeding certain high-income thresholds may receive a reduced amount or may not be eligible for the subsidy. Allowance amounts vary according to the child’s age and birth order. Children aged three to high school age receive ¥10,000 per month for the first and second child. For the third child and subsequent children, the allowance increases to ¥30,000 per month. Payments are disbursed six times annually, in even-numbered months.
