Why Japan is offering 1 million yen per child to move out of Tokyo, other big cities

Japan will pay Tokyo, Osaka residents to move to rural areas. (Representational)

The Japanese government is offering 1 million yen per child to any family that chooses to move out of greater Tokyo, as the island country sees a decline in population in other areas.

The $7,500 fee will be applicable from April this year, a steep increase from the previous relocation fund of $2,260 (3,00,000 yen).

Towns and villages in Japan have seen a declining population rate and this incentive is just a push to rectify that as more and more people move to Tokyo, Osaka and other big cities. The decline in population is also due to the coronavirus pandemic apart from reasons that the people living in towns and villages are mostly the retired and elderly as migration to cities continue to rise for job opportunities and better quality of life.

Watch: Why Is Japan Offering 1 Million Yen Per Child To Move Out Of Tokyo?

A whopping 3 million yen is already available in financial support and this payout is essentially for people living in the 23 core wards of Tokyo, other parts of the metropolitan area and the neighbouring commuter-belt prefectures of Saitama, Chiba and Kanagawa.

Japan’s Kyodo agency said that while the money will be paid only to families who move out of greater Tokyo, they may also get the fee if they move to the mountainous areas within the city limits.

However, there is a catch. Anyone looking to take the money and move back to the city soon will have to return the fee. Families have to live at least five years in their new homes and at least one member has to be working or starting a business in the area. Anyone who decides to return to the big cities before five years must return the money back.

Families receive 1 to 3 million yen per household provided they meet one of three criteria: employment at a small or midsize company in the area they move to; continuing in their old jobs via remote working; or starting a business in their new home, according to local media reports. After the higher payments are factored in, a family with two children could be eligible for up to 5 million yen.

The government will pay half the amount while local municipalities have to cough up the rest. Japan hopes that the incentive may lead to 10,000 people relocating out of Tokyo by 2027.

While the scheme has failed to attract as many takers in the past, the numbers have only risen each year since the plan was launched three years ago. The government has also in several ways tried to highlight the charms of a rural life to city residents hoping that the declining population (set to fall even further) gets a boost.