Japan is offering $7,500 per child to families as an incentive to move out from Tokyo

Japan's government is introducing a new incentive of JPY 1 million ($7,500) per child to families who move out of greater Tokyo, in an effort to reverse declining populations in Japan's regions. The payment, which is a significant increase from the previous relocation fee of JPY 300,000, will be available to families living in the 23 "core" wards of Tokyo and the neighboring prefectures of Saitama, Chiba and Kanagawa, as per a report from The Guardian. It is hoped that the generous sums on offer will encourage families with children aged up to 18 to move to and revitalize other regions, thereby easing pressure on space and public services in Tokyo, one of the world's largest metropolis with a population of around 35 million.

Policymakers believe that more needs to be done to lower Tokyo's population density and encourage people to start new lives in less popular parts of the country that have been hit by aging, shrinking populations, and the migration of younger people to Tokyo, Osaka, and other large cities. To be eligible for the benefits, families must move outside the greater Tokyo area. However, some may receive the cash if they relocate to mountainous areas within the city's boundaries.

What is the criteria? 

To receive the payments, families must meet one of three criteria: employment at a small or mid-size company in the area they move to, continuing in their old jobs via remote working, or starting a business in their new home, as per a report from Kyodo news agency. In addition to the JPY 1 million payment per child, families may also be eligible for up to JPY 3 million in financial support. This means that a family with two children could receive up to JPY 5 million in total. Half of the cash will come from the central government, and the other half from local municipalities.

However, families hoping to receive the payments and then return to the capital will be disappointed. To receive the benefits, they must live in their new homes for at least five years and have at least one member of the household in work or planning to open a new business. Those who move out before five years have passed will have to return the cash. The new incentive will be introduced in April and is part of an official push to revive declining towns and villages. Around 1,300 municipalities, approximately 80% of the total, have joined the scheme, hoping to capitalize on a shift in public attitudes towards the quality of life that gained momentum during the COVID-19 pandemic, when more people discovered the benefits of working remotely.