Paying for 4Ps benefits

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‘We note that the 4Ps program puts a premium on giving poor and vulnerable families the means to break away from the intergenerational cycle of poverty…’

THE Pantawid Pamilyang Pilipino Program or 4Ps is the government’s human development program that provides conditional cash grants to the poorest of the poor families to improve the health, nutrition, and education of children aged 0-18. For the last several years, it has been the source of sustenance by the very poor in Philippine society, with the beneficiaries identified through the  National Household Targeting System for Poverty Reduction (NHTS-PR).

Republic Act 1315, enacted in April 2019, provides the adoption of a Community-Based Monitoring System (CBMS) that generates updated data necessary for targeting beneficiaries, more comprehensive poverty analysis, and interventions and monitoring impact over time.

When President Ferdinand Marcos Jr. assumed office in 2022, he continued with the 4Ps program and even increased its budget allocation, saying it jives well with the Philippine Development Plan 2023-2028 of his administration. The comprehensive plan aims to achieve economic and social transformation through job creation and poverty reduction, with emphasis on sustainability and inclusivity – with no Filipino left behind.

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This year, P112.8 billion in the 2024 National Expenditure Program (NEP) was allocated to the 4Ps program for assistance to some 4.4 million eligible households. The program is run, undertaken and monitored by the Department of Social Welfare and Development (DSWD).

Budget Secretary Amenah Pangandaman highlighted that the amount is an increase of P10.23 billion relative to the P102.61 billion budget set in the 2023 General Appropriations Act (GAA).

Secretary Pangandaman said the allocation includes a significant P103.161 billion in various cash grants, such as P750 per month for health subsidies catering to 4.4 million households, educational subsidies ranging from P300-700 per month for over 7 million students, and P600 per month as rice subsidies for 4.4 million households.

On top of these benefits, the 4Ps beneficiaries stand to become low-cost social insurance policyholders when they become members of the Social Security System (SSS). The DSWD and the SSS are scheduled to sign a memorandum of agreement for this purpose this week.

DSWD Assistant Secretary and spokesperson Irene Dumlao said the department is fortunate to collaborate with the state-run SSS on the project.

“This partnership with SSS will extend social security coverage to our 4Ps beneficiaries, providing them with safety nets from income loss, sickness, and other financial burden,” Dumlao said.

To be known as the “4Ps AlkanSSSya Program,” the DSWD and the SSS shall establish a contribution subsidy table specific for the 4Ps organized group, upon SSS’s determination based on actuarial study and the actual capacity of the beneficiaries to pay the minimum amount of P570 per month. The SSS monthly premium will be shouldered by the beneficiaries.

The 4Ps beneficiaries who are members of workers’ associations, informal sector groups and sustainable livelihood program associations will also be covered by the partnership.

Under the agreement, the SSS will assist the DSWD in the registration and processing of applications of eligible beneficiaries.

4Ps national program manager Director Gemma Gabuya said insurance is integral to the DSWD’s Social Welfare and Development Indicator framework, adding that “before graduating from 4Ps, it is crucial for beneficiaries to have security or insurance.”

We note that the 4Ps program puts a premium on giving poor and vulnerable families the means to break away from the intergenerational cycle of poverty through human capital investments. As of May 31, there were 4.3 million household-beneficiaries nationwide that are receiving conditional cash grants under the program.

Also worthy of mention is the fact that 4Ps beneficiaries who are joining the SSS will have to pay for their own monthly premiums, for this will encourage them to save from the wherewithal they receive from the government, restoring their dignity and giving them a sense of responsibility.

 

 

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