Japan is planning to sweeten the financial incentive for parents who opt to move out of Tokyo as the government attempts to reverse decades of demographic decline, economic migration and the lure of the world’s biggest metropolis.
Officials familiar with the plan say the government will try to tempt families to relocate with a generous payment of up to ￥1mn ($7,600) per child if they swap overcrowded Tokyo for municipalities outside the city and its surrounding prefectures. The figure is more than triple the ￥300,000 on offer under an existing scheme in place since 2019.
The increased payment per child is only part of the government’s commitment to encouraging young families to leave Tokyo. Families that relocate are already being offered as much as ￥3mn in one-off financial support and can receive even more if they start a business.