Policy Update
Bhavya
Introduction
The COVID-19 pandemic has had far-reaching consequences, particularly for children who lost one or both parents to the virus. To address the needs of these vulnerable children, the Government of India introduced the PM CARES for Children scheme. This article delves into the functioning, benefits, and impact of the scheme while examining the challenges and areas for improvement.
Background
The National Commission for Child Protection estimates that 1,47,492 children have lost either parent, out of which 10,094 lost both parents or a single surviving parent to COVID-19. This staggering number underscores the urgent need to support these children. In response, the PM CARES for Children scheme was launched on 29th May 2021. This scheme, operating under the Ministry of Women and Child Development, is a crucial initiative to provide comprehensive care and protection to children who have lost both parents or a surviving parent, or a legal guardian, or adoptive parents, due to the COVID-19 pandemic. It aims to provide them with healthcare insurance, empower them through educational support, and equip them with financial backing until reaching 23 years of age.
Functioning
The scheme operates on a collaborative approach, with the Ministry of Women and Child Development at the central level, the Department of Women and Child Development at the state level, and the District Magistrate at the district level, all working together to ensure the welfare of these children.
Moreover, the following ministries and departments are required to facilitate the scheme: the Department of School Education and Literacy, the Department of Higher Education, the Ministry of Education, the Ministry of Health and Family Welfare, the Ministry of Social Justice and Employment, the Ministry of Tribal Affairs, and the Ministry of Minority Affairs.
The support process begins with identifying beneficiaries. District Magistrates (DMs), with help from police, child welfare groups, and community networks like ASHA workers and Anganwadis, will identify such children. Public awareness will be raised so people can report cases through helplines or local agencies.
Once identified, the child or their caregiver must fill out a form on the PM CARES portal. This registration should be done within a week. After that, the Child Welfare Committee (CWC), supported by child protection units, verifies the child’s background and uploads details to the portal. The DM reviews these details and makes the final decision on eligibility—this process must be done within a month.
If found eligible, the DM ensures an account is opened in the child’s name at the Post Office. For minors, it will be a joint account with the DM. If the child is 18 or older, they’ll hold the account themselves. Once the account is verified, funds from PM CARES are deposited into it, ideally within a month of receiving the money from the government.
Furthermore, the scheme is expected to continue till the year when every beneficiary turns 23 years of age.
The following are the comprehensive benefits provided under the scheme:
Educational support
The scheme provides educational support by enrolling the child in the nearest government/Government-aided school, Kendriya Vidyalayas(KVs), or a private school. Private school fees will be waived under the Right to Education Act. Furthermore, the scheme will also pay for uniform, textbook, and notebook expenditures. For higher education, the child will be assisted in obtaining an educational loan, in which the interest on the loan will be paid through the scheme.
A recent update to the scheme provides high-quality coaching classes to the beneficiaries covering competitive examinations such as civil service examinations, officer grade examinations for banks, insurance companies, and public sector undertaking(PSUs), entrance examinations: IIT-JEE, NEET, CLAT, CAT, International examinations: GMAT, IELTS, TOFEL, SAT, defence-related examinations: NDA and CDS. The government will comprehensively cover the coaching fees, ranging from INR 25,000 to INR 75,000, and provide a monthly stipend of INR 4,000 to assist with the expenses for 12 months.
Health Insurance
The scheme will provide health insurance worth five lakhs under the Ayushman Bharat Scheme(PM-JAY). It covers up to 3 days of pre-hospitalization and 15 days post-hospitalization
expenses such as diagnostics and medicines. The scheme’s benefits are portable across the country, i.e., a beneficiary can visit any public or private hospital in India to avail of cashless treatment.
Financial Support
The child will be paid a monthly stipend from age 18 and a lump sum amount of 10 lakhs upon reaching the age of 23 through the beneficiary’s post office account, ensuring financial independence.
Performance and Impact
The Ministry of Women and Child Development received 9,331 applications from 613 districts across 33 states and union territories (UTs). Out of which only approximately 4,543 children across 558 districts benefited from the scheme. Nearly 51% of the applications received are rejected, with reasons including incomplete information, lack of proper documentation, and ineligibility based on the verification process. State-wise, Rajasthan, Maharashtra, and Uttar Pradesh received the highest number of applications with 1,553, 1,511, and 1,077, respectively. In the financial year 2022-23, an amount of Rs 346 crore was disbursed to beneficiaries from the PM CARE Fund.
The scheme has provided financial and educational support to thousands of children affected by the pandemic. Beneficiaries receive health insurance coverage, academic assistance, and financial aid to ensure their well-being and self-sufficiency, thereby preventing dropout rates from rising. However, the high rejection rate of applications and challenges in beneficiary identification have limited the scheme’s reach. Additionally, the lack of transparency in fund allocation and utilization has raised stakeholder concerns.
Emerging Issues
Given the high rejection rates of applications, ensuring accurate information data collection remains a significant challenge. Secondly, administrative delays in the distribution of funds due to bureaucratic red tape. Thirdly, limited awareness among the affected children, conducting outreach programs can help with the case. Fourthly, a lack of adequate counselling services for the mental trauma suffered by the child on losing their parents, which includes falling behind in school, drug/alcohol abuse, and physical illness such as heart disease. Collaboration with NGOs or mental health professionals to look into the psychological needs of the children. Fifth, the limited disclosure of financial statements and funds utilisation has created questions regarding the scheme’s accountability; a regular publication of fund allocation can help build public trust.
Way Forward
To strengthen the impact of the PM CARES for Children scheme, several steps must be taken. First, improving the beneficiary identification process and simplifying documentation requirements will help reduce the rejection rate. Second, interdepartmental coordination must be enhanced to streamline fund disbursement and eliminate administrative delays. Third, expanding awareness campaigns can ensure that eligible children and their guardians are informed about the scheme and its benefits. Fourth, incorporating psychological counselling services through partnerships with NGOs and mental health professionals is essential to address the emotional trauma faced by these children. Lastly, improving transparency through regular publication of fund allocation and utilization reports will build public trust and ensure accountability. By addressing these gaps, the scheme can evolve into a truly comprehensive support system for children in need.
Conclusion
The PM CARES for Children scheme represents a vital intervention aimed at supporting children orphaned during the COVID-19 pandemic. By offering educational assistance, healthcare, and financial security, the scheme seeks to safeguard the rights and future of some of the most vulnerable members of society. While the initiative has provided critical support to thousands of children, it faces significant implementation challenges. High application rejection rates, gaps in mental health care, and limited transparency in fund utilization have hindered its overall effectiveness. These issues highlight the need for greater responsiveness and refinement in execution.
References
Government of India. (2021). PM CARES for Children scheme. https://wcd.gov.in/documents/uploaded/1713170979_ouRDvrjpU1.pdf
Kavita Bajeli-Datt, & Kavita Bajeli-Datt. (2024b, July 16). Over half of applications received under PM CARES for Children scheme rejected. The New Indian Express. https://www.newindianexpress.com/nation/2024/Jul/16/over-half-of-applications-received-under-pm-cares-for-children-scheme-rejected
Misra, A., & Sharma, A. (2025, January 20). Rs 346 crore spent from PM CAREs fund on over 4,500 kids orphaned during Covid-19, reveals audit. News18. https://www.news18.com/india/rs-346-crore-spent-from-pm-cares-fund-on-over-4500-kids-orphaned-during-covid-19-reveals-audit-9195037.html
Pti. (2025, February 21). Government extends free coaching scheme to PM CARES beneficiaries. The Hindu. https://www.thehindu.com/education/pm-cares-beneficiaries-sc-obc-students-to-get-free-coaching-for-competitive-exams/article69245900.ece
Poonam Agarwal, Ragamalika Karthikeyan, Poonam Agarwal, & Ragamalika Karthikeyan. (2025, January 18). Why are financial statements missing in PM CARES Fund reports? The News Minute. https://www.thenewsminute.com/news/why-are-financial-statements-missing-in-pm-cares-fund-reports
Pratt, T. (2023, April 8). COVID has left thousands of US children orphans. Few states are addressing the crisis. The Guardian. https://www.theguardian.com/world/2023/apr/08/covid-orphans-us
KHARGE, M., GOVERNMENT OF INDIA, & MINISTRY OF WOMEN AND CHILD DEVELOPMENT. (2024). PM CARES for Children scheme. In RAJYA SABHA. https://sansad.in/getFile/annex/265/AU1915_pbpYqw.pdf?source=pqars
About the Contributor
Bhavya is a research intern at IMRPI Impact and Policy Research Institute, currently a third-year undergraduate pursuing a double major in Economics and Sociology at Christ University, Bangalore, Central Campus.
Acknowledgment
The author thanks Mrs. Aasthaba Jadeja, internship coordinator, for her guidance and support, and the review team—Mohd Asif, Arjun, and Fatima Firdaus—for their valuable feedback on earlier drafts.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
Read more at IMPRI:
Peace Left Hanging: The Missing Factor
The Indo-Pacific in the Age of Multipolarity: India’s Strategic Imperatives
