Japanese families set to receive 1 million yen per child for moving out of Tokyo: Report

With an aim to revitalise declining towns and villages, Japan is encouraging families to move out from greater Tokyo. And as an added incentive, Japan's government is offering families who relocate 1 million yen ($7,500) per child - a significant increase from the previous relocation fee of 300,000 yen.

As per The Guardian citing Japanese media reports, the move is the government's attempt to increase the population in villages of Japan.

Tokyo's population plummeted last year partly due to the pandemic. However, policymakers believe more should be done to lower the city's population density and are encouraging people to settle in "unfashionable" regions of Japan that are suffering from declining population, ageing population, and migration of younger people to Tokyo, Osaka, and other major cities.

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Families residing in the 23 core wards of Tokyo as well as the nearby commuter-belt prefectures of Saitama, Chiba, and Kanagawa are eligible for the incentive.

Approximately 1,300 municipalities, ie, 80 per cent of the total, have signed up for the programme.

The scheme, however, is not without caveats. Families must live in their new homes for at least five years and at least one household member must be working or have plans to launch a new business. If they depart before the five years are finished, they must pay back the money.

Nikkei reports that moving families are eligible for 1 million to 3 million yen per household if they meet one of three requirements: they must be employed at a small or midsize business in the new community, continue in their current positions remotely, or establish a business in their new residence. A family with two children may be eligible for up to 5 million yen.

According to Kyodo, the central government will contribute half of the funds, while local municipalities will contribute the other half.

The move is reportedly set to come into effect in April.