The Australian government is providing $5 million in cash grants for poor families in the Philippines to help them continue sending children to school.

The cash grant is provided under an agreement signed on Friday by Australian Ambassador to the Philippines, Rod Smith, and Department of Social Welfare and Development (DSWD) Secretary Corazon Soliman in Manila. The DSWD is the government agency that implements the Philippine government's social services, including its anti-poverty reduction program.

"We are thankful to the Australian Government for this funding support which will go a long way in achieving this administration's goal of inclusive economic growth. This partnership with Australia will help the DSWD manage the scale-up of its anti-poverty programs to ensure that the poor will not be left behind in the country's journey to economic progress," Soliman said, according to the DSWD website.

"Australia is pleased to be part of a broad partnership that includes the World Bank and the Asian Development Bank to support the scaling up of the Program to cover three million poor households by the end of 2012, which will make it one of the largest conditional cash transfer programs in the world," Ambassador Smith said.

The conditional cash transfer program provides cash grants to poor families with children aged 0-14 years' old based on compliance with targets for attendance at school and regular visits to health centres. Program reviews have also shown increased school enrolment rates and use of health services by the beneficiaries indicating the program is on track to achieve its intended outcomes and contribute to achievement of the Millennium Development Goals for basic education and maternal health.

Australia also has provided $14 million for the construction of day care centres and classrooms in far-flung communities.

Australian Ambassador to Philippines Rod Smith and Social Welfare Secretary Corazon Soliman signed the $5 million cash grant for poor families agreement in Manila.