The Ministry of Education (MOE) has introduced new safeguards requiring student care operators in primary schools to provide a security deposit equivalent to one month’s fees, a move aimed at preventing disruptions similar to those caused by the February termination of Little Professors Learning Centre (LPLC). The size of the deposit will be based on each centre’s enrolment numbers.

This measure, to be phased in from December as existing contracts expire, is designed to allow the ministry to access funds if operators fail to meet contractual obligations. An MOE spokesperson explained that the deposit could be used to mitigate financial losses, including providing support to affected families.

LPLC’s contract termination last February disrupted care services for approximately 1,800 children across eight primary schools. Prior to the end of LPLC’s contract, 54 employees had lodged complaints over unpaid January salaries and outstanding Central Provident Fund contributions dating back to November 2025. Several employees reportedly ceased working on February 10 after salaries due on February 7 were not paid. During the transition period before four new operators assumed responsibility on April 6, school staff stepped in to maintain after-school care services, which were provided free of charge to parents.

In a written parliamentary response in September to Member of Parliament Yeo Wan Ling (Punggol GRC), Education Minister Desmond Lee outlined enhancements to the selection and monitoring processes for student care and kindergarten operators following the LPLC incident. In addition to the new security deposit requirement, the ministry will conduct more frequent checks on operators’ financial health to identify potential issues early. When financial or operational risks are detected, MOE will collaborate with operators to seek solutions, with a focus on ensuring uninterrupted service for students and families. Contracts may be terminated and replacement operators arranged in serious cases.

To address concerns over unauthorized GIRO deductions, such as the double charging of some parents for February fees by LPLC, the ministry now mandates that operators specify allowable GIRO deduction purposes within contracts. Any deductions outside these agreed-upon purposes may result in contract suspension or termination. The Monetary Authority of Singapore is also collaborating with the Association of Banks in Singapore and participating banks to consider enhancing GIRO payment safeguards.

Minister Lee advised that parents affected by the LPLC contract termination have been encouraged to pursue legal remedies through the Small Claims Tribunals. Meanwhile, investigations by the police into related matters are ongoing.