Japan has a universal childcare system and childcare is free or relatively affordable as the national government provides subsidies and a framework for working families. Fee schedules for a childcare age 2 and under are set by the local municipal governments based on household incomes and the number of children requiring childcare. Fees are reduced by 50% for the second child requiring care and waived for the third child or low-income households. Licensed childcare for ages 3 to 5 is free for a single-parent or when both parents are working. The national government only covers the cost of core childcare program and does not cover the cost of transportation, special activities, meals or snacks, although meals and snacks are partially covered for low-income households.