In yet another effort to stem the falling birthrate, the Ministry of Health, Labor and Welfare announced on 25th July an increase in the lump-sum allowance for newborns by between 50,000 and 100,000 yen (US$450 to 900). The current allowance under national health insurance is 300,000 yen. If approved, the new allowance could be in force by autumn 2006.

Japan's total fertility rate (TFR) hit yet another record low of 1.29 in 2004, and various attempts over the years by the government to slow the decline in TFR have been ineffective.

The money under the national health scheme is in addition to some corporate health insurance provisions and municipal allowances for birth-delivery expenses not covered by health insurance.