Income allowance for children under 3 will be increased to 1,000 yen. The increase will be in addition to the increase in the income allowance for high school students.

A new fund will be set up to help pay for the cost of child care. The new fund is expected to be in place by the end of the year. The aim is to reduce the burden on parents and children by reducing the need for child care, the prime minister said. The plan will be implemented over the next three years, he said.