Only around 360 people eligible for the HK$2 transport subsidy take more than 240 trips each month, Hong Kong’s welfare chief has said, following the government’s plan to limit the concessionary fare.
People are about to get on a mini-bus in Hong Kong. Photo: Kyle Lam/HKFP.
Financial Secretary Paul Chan announced in his 2025 budget speech a series of cost-cutting measures as the city logged an estimated HK$87.2 billion deficit in 2024-25 – the third consecutive financial year in the red.
On Wednesday, he unveiled plans to scale back the transport subsidy scheme, which cost almost HK$4 billion in the previous fiscal year. The use of the HK$2 flat public transport fare for elderly Hong Kong residents and other eligible individuals will be capped at 240 trips per month. For fares above HK$10, the beneficiaries will need to pay 20 per cent of the original fare.
Citing government data, Sun said in a press conference on Thursday that the 360 users who took more than 20 dozen trips per month comprised 1 per cent of all transport subsidy beneficiaries.
The secretary for labour and welfare also disclosed that only around 25 per cent of the beneficiaries took trips that cost more than HK$10 last year.
Secretary for Labour and Welfare Chris Sun. File photo: Kyle Lam/HKFP.
Sun acknowledged that limiting the number of trips and adjusting the subsidy would have no impact on the majority of beneficiaries, but said the cut was necessary to ensure Hong Kong’s financial sustainability amid an ageing population.
“Frankly speaking, in the future, for the elderly and people with disabilities who take trips of over HK$10 fares, they need to pay more… This is a fact,” he said in Cantonese.
“But the public needs to think differently. Although you’re paying a bit more, the amount of subsidies provided by the government is still a lot. For a HK$20 fare, the elderly will pay HK$4 in the future, the government still pays HK$16.”
As the city sees a growing elderly population, the government needs to strike a balance between social welfare and expenditure, the minister said.
A poster promoting different Octopus cards in a MTR station. Photo: Kyle Lam/HKFP.
Sun also said the subsidy changes to fares over HK$10 would be implemented no later than September next year as authorities needed more time to adjust around 17,000 Octopus readers around the city.
The effective date for the cap on the number of monthly trips is still under discussion, he said.
He estimated that lowering the subsidy for fares over HK$10 would save the government around HK$680 million in the 2027-28 fiscal year.
The transport subsidy scheme was introduced in 2011 by then chief executive Donald Tsang, who said it aimed to help the elderly – aged 65 and above – and people with disabilities participate more in the community.
In 2020, then chief executive Carrie Lam lowered the eligible minimum age for the elderly, allowing residents aged 60 and above to enjoy the scheme.
