Source: Hong Kong Government special administrative region
Following are the speaking notes of the Secretary for Labour and Welfare, Mr Chris Sun, on welfare, poverty alleviation and children policy areas tabled at the special meeting of the Legislative Council (LegCo) Finance Committee today (April 9):
Chairman and Honourable Members,
In 2025-26, government recurrent spending on social welfare is estimated to be $130.4 billion, accounting for 22.2 per cent of the total recurrent government expenditure of the year, first amongst all policy area groups. Compared with the revised estimate for 2024-25 of $118.7 billion, there is an increase of about $11.7 billion in recurrent spending on social welfare. The increase is about 9.8 per cent. Now, let me highlight how the Labour and Welfare Bureau (LWB) will make use of these resources.
Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities ($2 Scheme)
The Financial Secretary has announced in the 2025-26 Budget the adjustments of the $2 Scheme. On the basis that the targeted beneficiaries remain unchanged, the Government will change the concessionary fare to “$2 flat rate cum 80 per cent discount”, which means that beneficiaries will continue to pay $2 for trips with full adult fare below or equal to $10. For trips with full adult fare above $10, the beneficiaries will have to pay the amount after 80 per cent discount of the full fare. Furthermore, the number of concessionary trips will also be limited to 240 per month. This fine-tuned proposal preserves our policy intent while striking a balance between enhancing the sustainability of the scheme and minimising the impacts to the beneficiaries. Our preliminary estimate at the time of the Budget announcement was that the “$2 flat rate cum 80 per cent discount” proposal would be implemented no later than September 2026. Upon liaison with the Octopus Cards Limited and public transport operators, the “$2 flat rate cum 80 per cent discount” proposal can be implemented in April 2026, which is around five months earlier than the original estimate. The amount of additional savings is about $260 million. As for the “concessionary trips limit” proposal, we expect that it will be implemented about one year after the implementation of the “$2 flat rate cum 80 per cent discount” proposal.
Elderly services
The recurrent government expenditure on elderly services this year is estimated to reach about $17 billion, representing an increase of about 50 per cent over about $11 billion five years ago (i.e. 2020-21).
The Government will continue to strengthen residential and community care services for the elderly. We will add 1 000 Residential Care Service Vouchers for the Elderly (RCSV) and 1 000 Community Care Service Vouchers for the Elderly (CCSV) starting from the second quarter this year, so that the numbers of RCSV and CCSV will reach 6 000 and 12 000 respectively. The annual expenditure involved is about $1,710 million and $900 million respectively.
Cash assistance
This year’s Budget proposes to provide a one-off extra half-month allowance to eligible recipients of social security payments, which will incur an expenditure of about $2,988 million and is expected to benefit about 1.71 million persons. Similar arrangements will apply to recipients of the Working Family Allowance Scheme. It is expected that around 56 000 households will benefit from this initiative, incurring an expenditure of about $96 million.
Enhance support for persons with disabilities
Starting from the third quarter of this year, the Government will regularise the Pilot Project on Enhancing Vocational Rehabilitation Services to enhance services and training models in Sheltered Workshops and Integrated Vocational Rehabilitation Services Centres to build a better vocational rehabilitation and training ladder for persons with disabilities. This initiative involves an annual expenditure of about $100 million, and it is expected to benefit about 10 000 people.
The Government will set up 14 Integrated Community Rehabilitation Centres across the territory in phases to provide persons with disabilities who require medium to high-level care with flexible and integrated community support services through a case management approach. Moreover, 1 280 additional day community rehabilitation and home care service places will be provided for persons with severe disabilities. Additional annual expenditure involved is around $160 million.
In addition, in view of the remarkable effectiveness of peer support services for persons in mental recovery, the Chief Executive announced in the 2024 Policy Address that peer support services will be expanded to other types of disabilities, with 90 additional peer supporter posts added in District Support Centres for Persons with Disabilities and Parents/Relatives Resource Centres. Annual expenditure involved is around $21 million.
Online youth emotional support platform
The Government will enhance the services of the five existing Cyber Youth Support Teams in the second quarter of 2025 by providing an online youth emotional support platform. Total additional expenditure involved is around $150 million.
District Services and Community Care Teams – Scheme on Supporting Elderly and Carers
The Government launched the District Services and Community Care Teams – Pilot Scheme on Supporting for Elderly and Carers in Tsuen Wan and Southern Districts in March last year. Care Teams were engaged to help identify households of singleton/doubleton elderly persons and carers of elderly persons/persons with disabilities in need, providing them with caring and support services. In light of the satisfactory results of the Pilot Scheme, the Chief Executive announced in the 2024 Policy Address that the Scheme will be extended to across the territory in the second quarter of 2025, supporting elderly persons and carers in all 18 districts. This initiative involves an annual expenditure of about $111.9 million.
Rehabilitation services places
The Government is committed to building an inclusive society and supporting persons with disabilities in developing their physical, mental social capabilities to the fullest possible extent, and to promote their integration into the community. To this end, the Government is committed to increasing the number of rehabilitation (including day, residential and respite care) service places from about 37 300 in 2023-24 to about 39 900 by 2028-29 and providing about 1 040 additional day care, residential care and pre-school rehabilitation service places in 2025-26. These involve an annual expenditure of about $186 million.
Assist working families in childbearing
Over the three years starting from 2024, the Government is setting up 11 more aided standalone Child Care Centres (CCCs) in phases, increasing the number of CCCs from 15 to 26, and increasing the service places from about 1 000 to about 2 000. Four of the new CCCs have commenced service in 2024, providing a total of 344 service places. The Social Welfare Department (SWD) will also further enhance the Neighbourhood Support Child Care Project by further increasing the number of service places from 2 000 to 2 500, with the estimated number of beneficiaries to be increased from 20 000 to 25 000.
Child protection
The Mandatory Reporting of Child Abuse Ordinance will come into effect on January 20, 2026, creating a wider and more effective protection web for children. In this connection, the Government will provide an additional annual provision of $186 million to increase the number of emergency places for residential childcare service and strengthen professional support for child abuse victims and their families.
To strengthen the prevention of child abuse at its source, the Government will allocate an additional provision of $96.9 million from 2025-26 to 2029-30 for setting up four Community Parents and Children Centres on a pilot basis. The Centres will promote parent-child interaction through play-based services and instil positive parenting skills in parents, and render support for families with parenting needs. The four Community Parents and Children Centres will commence operation progressively starting from 2026.
Implementation of Productivity Enhancement Programme (PEP)
The Financial Secretary has announced in the 2025-26 Budget that the Government would step up the PEP. On the premise that the Comprehensive Social Security Assistance and Social Security Allowance will not be affected, the rate of reduction of recurrent government expenditure will be increased from the original 1 per cent to 2 per cent in 2025-26. This arrangement will be extended for two more years to 2027-28. Taking into account the 1 per cent cut in 2024-25, the cumulative rate of reduction will be 7 per cent in total. After considering various factors and trying the best to redeploy internal resources, the LWB and the SWD rolled out four support measures to assist non-governmental organisations operating subvented welfare services (subvented NGOs) in implementing the PEP, including
(i) shouldering part of the financial impact on subvented NGOs and exempting multiple items that are subject to reduction in expenditure;
(ii) increasing subvented NGOs’ flexibility and certainty in utilising the reserves of Lump Sum Grant subvention;
(iii) reducing the workload of handling cost apportionment; and
(iv) enhancing Funding and Service Agreements.
I have met with heads of subvented NGOs immediately after the announcement of the Budget to explain the support measures. I would like to thank the senior management of the subvented NGOs for leading their staff to rise to the challenges, and for working with the Government in a concerted manner to make the best use of public resources to implement the PEP together and continue to provide quality services to the needy.
Chairman, this concludes my opening remarks. Members are welcome to raise questions.