The Philippine Policy on Unconditional Cash Transfer thru the

Pantawid Pamilyang Pilipino Program of the

Department of Social Welfare and Development
as a response to the enactment of the Tax Reform for Acceleration and Inclusion or
TRAIN Law

I. Background:

The 4Ps is currently the world’s fourth-largest CCT program based on

population coverage. It complements the government’s other
development priorities such as generating jobs and creating livelihood
opportunities for the poor.1

The Pantawid Pamilyang Pilipino Program (4Ps) is a human

development measure of the national government that provides
conditional cash grants to the poorest of the poor, to improve the health,
nutrition, and the education of children aged 0-18. It is patterned after
the conditional cash transfer (CCT) schemes in Latin American and African
countries, which have lifted millions of people around the world from
poverty.2

The Department of Social Welfare and Development (DSWD) is the

lead government agency of the 4Ps.

The 4Ps operates in all the 17 regions in the Philippines, covering 79

provinces, 143 cities, and 1,484 municipalities. Beneficiaries are selected
through the National Household Targeting System for Poverty Reduction
(NHTS-PR), which identifies who and where the poor are in the country.

In general, the following criteria must be satisfied to become eligible

for the program:

 Residents of the poorest municipalities, based on 2003 Small

Area Estimates (SAE) of the National Statistical Coordination
Board (NSCB)
 Households whose economic condition is equal to or below the
provincial poverty threshold
 Households that have children 0-18 years old and/or have a
pregnant woman at the time of assessment
 Households that agree to meet conditions specified in the
program

1
The World Bank, FAQs about the Pantawid Pamilyang Pilipino Program (4Ps), Accessed at:
http://www.worldbank.org/en/country/philippines/brief/faqs-about-the-pantawid-pamilyang-pilipino-
program
2
FAQs on Pantawid Pamilyang Pilipino Program, Official Gazatte of the Philippines, Accessed at:
http://www.officialgazette.gov.ph/programs/conditional-cash-transfer/
 The government’s comprehensive tax reform program is embodies in
Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion
(Train) Law, seeks to enhance the efficiency, simplicity and equity of the
tax system in order to promote investment, create jobs and reduce
poverty.

It complements ongoing tax, customs administration budget and

economic reforms to secure property rights, enhance competition, simplify
regulations and improve food security. The first of the five tax reform
packages consists of the following key measures: (1) lowering of personal
income tax, (2) lowering of estate and donor taxes, (3) expanding the
value added tax (VAT) base by removing around 80 lines of exemptions
that have little basis or whose benefit can be provided through targeted
measures, (4) increasing the excise on oil products, (5) increasing excise
on automobiles and (5) introducing a sugar-sweetened beverage tax.

To mitigate the effects of increase in prices, particularly due to the

increase in the excise on oil products, TRAIN mandates the government
to provide social mitigating measures to protect and improve the lives of
the poor and vulnerable.

Unconditional Cash Transfer Program is the biggest tax reform

mitigation program under the TRAIN Law. It seeks to provide cash grants
to poor households and individuals who may not benefit from the lower
income tax rates but may be adversely affected by rising prices.

II. Goals

To provide a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from
poverty through policies that provide adequate social services and
improve quality of life by poverty reduction and social development
strategy of the National Government that provides conditional cash grants
to extremely poor households to improve their health, nutrition and
education particularly of children aged 0-14.3

III. Objectives

1. To improve preventive health care of pregnant women and young

children

2. To increase enrolment /attendance of children at elementary level

3. To reduce incidence of child labor

4. To raise consumption of poor households on nutrient dense foods

3
DSWD Administrative Order No. 16, series of 2008 (A.O. No. 16, s. 2008)
 5. To encourage parents to invest in their children's (and their own)
future

6. To encourage parent's participation in the growth and development

of young children, as well as involvement in the community.4

IV. Methods

1. In-depth study on the National status of preventive health care

of pregnant women and young children, enrolment /attendance
of children at elementary level, incidence of child labor,
nutrition, and youth’s involvement in the community.
2. Create an implementation plan which discusses wholly the
requirement or qualification of each beneficiary
3. Institutionalize a coordinated inter-agency network among the
Department of Education (DepEd), Department of Health
(DOH), Department of Interior and Local Government (DILG),
the National Anti-Poverty Commission (NAPC) and the local
government units (LGUs)
4. Congress support by funding the program in the General
Appropriations Act
5. Establishment of a national monitoring agency / office
6. Direct implementation of the National agencies rather than
downloading of funds to local government units.

4
Item 3, Goal and Objectives, A.O. No. 16, s. 2008
 V. Activities and Performance

Activity Performance Indicator IMPLEMENTING COLLABORAT IMPLEM

AGENCY ING / CO- ENTATI
IMPLEMENT ON
OR DATE
1. Pilot-testing of the program Proven effectiveness and efficiency of the program in DSWD LGU concerned 1 year
on a micro-scale (City, the area (City / Municipality / Province) of prior to
Municipal or Provincial Level) implementation and completed 2 years prior to the baseline
implementation date with very satisfactory feedback assessme
from all clients and as well as positive results nt on
conducted by an independent third-party research / number 2
study.
2. Adaptation of the result of Nationwide assessment by an independent third-party DSWD Third-party Atleast 2
the study of the communities research / study or by the government itself through research years
stricken by poverty as the DSWD - National Household Targeting System5 is organization prior to
baseline in budget allocation conducted in participation with LGUs and submitted to implemen
per Province, City and the appropriate government offices for its inclusion in DOF tation
Municipality. the General Appropriations Act pursuant to the
Constitution and other applicable laws.

Such report / study shall be verified by any third party

organization funded by the Department of Finance.

5
The Listahanan or the National Household Targeting System for Poverty Reduction (NHTS-PR) is an information management system that identifies who and where the
poor are in the country. The system makes available to national government agencies and other social protection stakeholders a database of poor families as reference in
identifying potential beneficiaries of social protection programs.
The National Household Targeting Office (NHTO) of the Department of Social Welfare and Development (DSWD) spearheads the implementation of this project.
3. Prioritization of beneficiaries List of priority LGUs segregated as to their needs and DSWD DILG and LGUs Atleast 2
the incidence of poverty is determined using the to the year prior
Proxy Means Test (PMT).6 to
implemen
tation
4. Execution of a Memorandum C/MSWDOs of each LGU shall identify beneficiary P/C/MDSWDO Atleast 1
of Agreement by DSWD with families, through: year prior
each participating LGU to
1. Case studies implemen
2. Copies of birth certificates for all family tation
members.
3. Copies of school IDs or first grading period
school report cards of all children in the family
who attended school.
Barangay certificate.
4. 2 pcs 1″x1″ picture with white background for
the Program ID and Land Bank ATM ID.
5. Copy of health records of 0-5 year olds from the
health center where they have their check-ups.
6. Valid IDs of the family member attending the
community assembly.

Filed and submitted to their respective P/C/MDSWDO

Conducted and completed (100% in all targeted LGUs)

6
The COA had stated that the selection of poor households through the household assessment and the application of the Proxy Means Test (PMT) may be considered
deficient. (Commission on Audit Annual Report, 2012). The PMT tends to overestimate the number of poor households as shown by the list generated by the National
Household Targeting System for Poverty Reduction (NHTS-PR) designed by the Department of Social Welfare and Development (DSWD). For the year 2009, the NHTS-PR
estimated that there are 5.2 million poor households and 5.7 million families which differs largely from the National Statistical Coordination Board’s (NSCB’s) official
poverty estimate in 2009 of 3.9 million poor families based on a refined methodology (Reyes et., al., 2013).
 1 year prior to the date of implementation and copy
furnish in a condensed version, the office of the DSWD
5. Orientation of participating Mass information drive and training of P/C/MDSWDO DSWD P/C/MDSWDO Atleast 6
LGUs regarding its staff on the implementation of all participating LGUs, months
implementation with very satisfactory assessment rate from the prior to
trainers, pooled and accredited by the DSWD during implemen
the pilot testing. tation
6. Monitoring of family- 1. Pregnant women must avail pre- and post-natal DOH Local
beneficiaries care, and be attended during childbirth by a DepEd counterparts
a. Health care and nutrition trained professional; DILG and LGUs
b. Education 2. Parents or guardians must attend the family NAPC
c. Participation or development sessions, which include topics on
involvement in responsible parenting, health, and nutrition;
community of the youth 3. Children aged 0-5 must receive regular
preventive health check-ups and vaccines;
4. Children aged 6-14 must receive deworming
pills twice a year; and
5. Children-beneficiaries aged 3-18 must enroll in
school, and maintain an attendance of at least
85% of class days every month.

7. Quarterly and Annual report Four quarterly report not later than 30 days after end DSWD DOH Four
on quantitative status of of every quarter and annual report not later than DepEd times per
numbers 5 and 6 March of the following year DILG annum
NAPC
National status report on preventive health care of
pregnant women and young children, enrolment
/attendance of children at elementary level, incidence
of child labor, nutrition, and youth’s involvement in the
community
8. Provision of Cash Grants to Health/Nutrition DSWD P/C/MDSWDO Release
identified beneficiaries of funds
Provided regular (Annual, mothly or oftener, depending per
on case) preventive health check ups & vaccines quarter
shall be
Provided free prenatal & postnatal check ups to the 4th
pregnant women Provided appropriate delivery week of
services by skilled professionals at appropriate level every 1st
month of
Provided free immunization to 0-5 years old every
quarter.
Provided deworming twice a year to 6-14 years old

Conduct monthly weight monitoring and nutrition

counseling for 0-2 years old children

Conduct free family planning session/ breastfeeding

counseling

Education

Conducted monthly monitoring services to children

aged 3-5 years old enrolled in Day Care and maintain
class attendance rate of 85% per month

Conducted monthly monitoring services to children

aged 6-14 years old enrolled in Elem. & Secondary
Schools and maintain class attendance rate of 85% per
month
Parenting Session

Conduct family development session

 VI. Evaluation

Activity Performance Indicator Accomplishment

1. Pilot-testing of the program Proven effectiveness and efficiency of the program “Ahon Pamilyang Pilipino,” it was pre-pilot
on a micro-scale (City, in the area (City / Municipality / Province) of tested in the municipalities of Sibagat and
Municipal or Provincial Level) implementation and completed 2 years prior to the Esperanza in Agusan del Sur; the municipalities
implementation date with very satisfactory feedback of Lopez Jaena and Bonifacio in Misamis
from all clients and as well as positive results Occidental, the Caraga Region; and the cities of
conducted by an independent third-party research / Pasay and Caloocan upon the release of the
study. amount of P50 Million Pesos under a Special
Allotment Release Order (SARO) issued by the
Department of Budget and Management.
2. Adaptation of the result of Nationwide assessment by an independent third-
the study of the communities party research / study or by the government itself
stricken by poverty as through the DSWD - National Household Targeting
baseline in budget allocation System7 is conducted in participation with LGUs and
per Province, City and submitted to the appropriate government offices for
Municipality. its inclusion in the General Appropriations Act
pursuant to the Constitution and other applicable
laws.

Such report / study shall be verified by any third

party organization funded by the Department of
Finance.

7
The Listahanan or the National Household Targeting System for Poverty Reduction (NHTS-PR) is an information management system that identifies who and where the
poor are in the country. The system makes available to national government agencies and other social protection stakeholders a database of poor families as reference in
identifying potential beneficiaries of social protection programs.
The National Household Targeting Office (NHTO) of the Department of Social Welfare and Development (DSWD) spearheads the implementation of this project.
3. Prioritization of beneficiaries List of priority LGUs segregated as to their needs
and the incidence of poverty is determined using the
to the Proxy Means Test (PMT).8

4. Execution of a Memorandum C/MSWDOs of each LGU shall identify beneficiary

of Agreement by DSWD with families, through:
each participating LGU
7. Case studies
8. Copies of birth certificates for all family
members.
9. Copies of school IDs or first grading period
school report cards of all children in the
family who attended school.
Barangay certificate.
10. 2 pcs 1″x1″ picture with white background
for the Program ID and Land Bank ATM ID.
11. Copy of health records of 0-5 year olds from
the health center where they have their
check-ups.
12. Valid IDs of the family member attending the
community assembly.

Filed and submitted to their respective

P/C/MDSWDO

8
The COA had stated that the selection of poor households through the household assessment and the application of the Proxy Means Test (PMT) may be considered
deficient. (Commission on Audit Annual Report, 2012). The PMT tends to overestimate the number of poor households as shown by the list generated by the National
Household Targeting System for Poverty Reduction (NHTS-PR) designed by the Department of Social Welfare and Development (DSWD). For the year 2009, the NHTS-PR
estimated that there are 5.2 million poor households and 5.7 million families which differs largely from the National Statistical Coordination Board’s (NSCB’s) official
poverty estimate in 2009 of 3.9 million poor families based on a refined methodology (Reyes et., al., 2013).
 Conducted and completed (100% in all targeted
LGUs) 1 year prior to the date of implementation
and copy furnish in a condensed version, the office
of the DSWD
5. Orientation of participating Mass information drive and training of
LGUs regarding its P/C/MDSWDO staff on the implementation of all
implementation participating LGUs, with very satisfactory
assessment rate from the trainers, pooled and
accredited by the DSWD during the pilot testing.
6. Monitoring of family- 6. Pregnant women must avail pre- and post-
beneficiaries natal care, and be attended during childbirth
a. Health care and nutrition by a trained professional;
b. Education 7. Parents or guardians must attend the family
c. Participation or development sessions, which include topics
involvement in on responsible parenting, health, and
community of the youth nutrition;
8. Children aged 0-5 must receive regular
preventive health check-ups and vaccines;
9. Children aged 6-14 must receive deworming
pills twice a year; and
10. Children-beneficiaries aged 3-18 must enroll
in school, and maintain an attendance of at
least 85% of class days every month.

7. Quarterly and Annual report Four quarterly report not later than 30 days after
on quantitative status of end of every quarter and annual report not later
numbers 5 and 6 than March of the following year

National status report on preventive health care of

 pregnant women and young children, enrolment
/attendance of children at elementary level,
incidence of child labor, nutrition, and youth’s
involvement in the community
8. Provision of Cash Grants to Health/Nutrition
identified beneficiaries
Provided regular (Annual, mothly or oftener,
depending on case) preventive health check ups &
vaccines

Provided free prenatal & postnatal check ups to

pregnant women Provided appropriate delivery
services by skilled professionals at appropriate level

Provided free immunization to 0-5 years old

Provided deworming twice a year to 6-14 years old

Conduct monthly weight monitoring and nutrition

counseling for 0-2 years old children

Conduct free family planning session/ breastfeeding

counseling

Education

Conducted monthly monitoring services to children

aged 3-5 years old enrolled in Day Care and
maintain class attendance rate of 85% per month

Conducted monthly monitoring services to children

 aged 6-14 years old enrolled in Elem. & Secondary
Schools and maintain class attendance rate of 85%
per month

Parenting Session

Conduct family development session

In the 2000 Millennium Declaration, the Philippines was among the many nations which committed to reduce its
poverty rate by 2015. There are only a few years left into 2015 but the country’s poverty situation is still far from its
target. Worse, the poverty trend is going upwards. In the newly improved poverty estimation, the poverty rate of the
population climbed up from 24.9 in 2003 to 26.4 in 2006 and inched up further to 26.5 percent in 2009 marking an
increase of 3.3 million poor individuals from 2003 to 2009. 9

To obtain the poorest households in the municipalities, the DSWD uses the National Household Targeting System for
Poverty Reduction (NHTS-PR). The system employs Proxy Means Test Model to identify the poor families. The Proxy
Means Test model was estimated using data from the 2006 Family Income and Expenditure Survey and the 2006 Labor
Force Survey. The assessmentt is conducted by using certain proxy variables like ownership of assets, type of housing,
education of household head, livelihood and access to water and sanitation facilities to predict income. To verify
compliance, the DSWD coordinates with the program’s 4 multi-sectoral Advisory Committee to conduct monthly
verification through the Compliance Verification System (CVS) developed for the program.

At present, the amount of cash grants range from a maximum of P1,400 per month to P1,900 per month. The size of
the cash grant is based on the rationale that P500 per month is to be used for health and nutrition expenditures while
the amount of P900 per month is for the indirect education expenses of 3 children for 10 months in a year (Jimenez,
2014).10

9
Celia M. Reyes and Aubrey D. Tabuga (2012), Conditional Cash Transfer Program in the Philippines: Is It Reaching the Extremely Poor?, Philippine Institute for
Development Studies
10
Jimenez, Javier (2014). Assistant Secretary, Department of Social Welfare and Development. The Conditional Cash Transfer Program. ABS-CBN News and Current Affairs.
 The program has been implemented in 80 provinces covering 1,483 municipalities and 144 cities in all 17 regions
nationwide. During its first year of implementation in 2007 it catered 6,000 poor households and this further increased
to 586,523 households and this further increased to 630,000 in 2009 and reaching a million by 2010 at the time when
then President Benigno Simeon Aquino