Changes to Hong Kong’s HK$2 transport subsidy scheme to kick in on April 3

Hong Kong will implement the revised HK$2 (26 US cents) transport fare scheme next Friday, under which elderly residents and those with disabilities will only enjoy the flat rate for journeys costing HK$10 or less. Secretary for Labour and Welfare Chris Sun Yuk-han said on Monday the move was expected to slash government spending by HK$550 million in the coming year. The remaining part of the revised scheme, where beneficiaries would be capped at 240 subsidised trips monthly, will be rolled out next year. The new “HK$2 flat rate or 80 per cent discount” model would be implemented on April 3, according to authorities. Beneficiaries under the revised scheme will only enjoy the HK$2 rate for journeys on which the adult fare is HK$10 or less, and will have to pay 20 per cent of fares that exceed that threshold. Financial Secretary Paul Chan Mo-po announced the planned changes in his budget speech last year, in a bid to scale back spending amid concerns about the scheme’s ballooning costs as the city’s ageing population grew. Sun said the original HK$2 concessionary fare aimed to build a caring and inclusive society by encouraging the elderly and people with certain disabilities to participate more in community activities. “The ‘HK$2 flat rate or 80 per cent discount’ adjustment preserves the policy intent of the scheme while striking a balance between enhancing the sustainability of the scheme and minimising impacts on beneficiaries,” he said. “We estimate, based on the latest assessment, that the government will save approximately HK$550 million in public funds [with the latest changes] … we will keep a close watch on whether travel patterns change or if there are any shifts in passenger volume data.” The minister said the move would curb “short-tripping” on long-haul vehicles, citing how some commuters travelling short distances, such as from Sheung Wan to Central, often boarded expensive cross-harbour buses because the fare was a flat HK$2 regardless of the route previously. “The elderly will naturally be budget-conscious. Through this arrangement, it remains convenient for them to move around the district for HK$2, but it also allows long-haul buses to be saved for those who need them for work or school,” Sun said. He added that briefings would be held with district councillors and care teams, while television and radio promotions alongside posters at 2,000 locations would be launched to explain the changes. On April 3, service ambassadors at 75 points and community teams would provide on-site support to resolve elderly residents’ inquiries regarding the scheme, he said. He stressed that the 240-trip monthly cap would be implemented at least one year after the first stage of changes in a bid to ensure the smooth execution of the new fare structure. Former social welfare sector lawmaker Tik Chi-yuen said the new arrangement would inevitably impose an additional burden on elderly individuals and people with disabilities living in remote areas, such as the New Territories and outlying islands, who must travel long distances across districts for medical treatment or work or to visit relatives. “This move effectively creates regional inequality and implicitly punishes residents living in remote areas,” Tik, chairman of the Third Side party, said. “It runs contrary to the original policy objectives of narrowing regional disparities and promoting social inclusion through fare concessions.” While eligibility for the scheme remains unchanged, access is strictly tied to specific payment methods, requiring Hong Kong residents aged 60 or above to use an Octopus JoyYou Card. Those under 60 and recipients under the Comprehensive Social Security Assistance scheme with 100 per cent disabilities or recipients of the Disability Allowance must use a personalised Octopus encoded with “Persons with Disabilities Status” to access the concession. Introduced in 2012 by then city leader Donald Tsang Yam-kuen, the scheme initially offered subsidised transport fees for residents aged 65 and above, with authorities aiming to encourage older people to take part in more social and community activities. The lower eligibility age was floated by Carrie Lam Cheng Yuet-ngor’s government in 2020 and adopted in February 2022, with the estimated number of beneficiaries increasing by about 815,000 people. But the scheme’s sustainability has come under scrutiny in recent years as some critics said the lowering of the age threshold had caused a significant financial burden on public finances, and eventually prompted a review by the government.

Changes to Hong Kong’s HK$2 transport subsidy scheme to kick in on April 3

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Under revision, elderly and disabled residents will enjoy flat rate for trips costing HK$10 or less, pay 20 per cent of fares exceeding threshold

Under revision, elderly and disabled residents will enjoy flat rate for trips costing HK$10 or less, pay 20 per cent of fares exceeding threshold