Why is Japan offering families millions of yen to move out of Tokyo? check here

According to several local media sources, Japan intends to increase financial assistance to households that relocate outside of the capital in order to stop the country’s other regions from becoming depopulated.

According to several local media sources, Japan intends to increase financial assistance to households that relocate outside of the capital in order to stop the country’s other regions from becoming depopulated.

Starting in the fiscal year 2023, eligible families in the Tokyo metropolitan region would be able to get 1 million yen ($7,700) per child if they relocate to a low-income neighbourhood. This is more than triple the existing 300,000 yen incentive, according to the reports.

The financial incentives draw attention to the problems that Japan is having because of its high life expectancy and low birth rate. Young people are leaving rural areas in search of opportunities in cities, which has resulted in a significant decline in population and reduced tax revenue in the area.

In addition to receiving a flat 1 million yen for relocation, families can also receive enhanced help for their kids. A household with two children could get 3 million yen in support under the new plan if they departed the Tokyo region.

In an effort to draw residents to rural areas, Japan’s national government launched a programme in 2019 that enables households that have resided in the central Tokyo metropolitan area for five years to apply for relocation assistance.

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Families have the option of continuing to work from home at their present employment, working at a nearby small or medium-sized business, or creating their own business in the neighbourhood, all of which would qualify them for additional financial aid.

According to the Nikkei, 1,184 households participated in the programme in 2021, up from 71 the year it was initially introduced.