As an organization dedicated to promoting integration and fostering a community-friendly environment, the Hong Kong PHAB Association has closely followed the Financial Budget announced by the Government on February 25, 2026. We appreciate the Government’s continued allocation of resources to social welfare amidst the challenges of economic recovery and fiscal pressure, particularly through measures targeting persons with disabilities, the elderly, carers, and individuals with diverse needs. While this Budget demonstrates a commitment to vulnerable groups, we believe further strengthening of support is essential to address the practical needs of the community. Our recommendations and responses to the 2026-27 Budget are as follows:
Commended Measures
The budgeted expenditure for social welfare has reached HK$148.1 billion, representing a 14.4% increase over the previous year and accounting for 17.6% of total government expenditure. This reflects the importance placed on public well-being. We specifically welcome the following initiatives for persons with disabilities, the elderly, and related groups:
1. Expansion of Elderly Care Service Vouchers
The Budget increases the number of Community Care Service Vouchers for the Elderly to 16,000 (an increase of 4,000) and Residential Care Service Vouchers to 7,000 (an increase of 1,000), with estimated annual expenditures of approximately HK$1.2 billion and HK$1.97 billion, respectively. These measures facilitate aging in place and alleviate the burden on carers.
2. Strengthening Rehabilitation and Support Services
Approximately 450 additional places for day, residential, and pre-school rehabilitation services will be provided, involving an additional annual expenditure of HK$107 million. Furthermore, HK$260 million per annum will be allocated to provide primary school transition support for children with Special Educational Needs (SEN) receiving "On-site Pre-school Rehabilitation Services." These initiatives assist persons with disabilities and SEN students in integrating into the community.
3. Additional Allowances and Tax Concessions
A one-off extra month of allowance will be provided to eligible recipients of Comprehensive Social Security Assistance (CSSA), Old Age Allowance, Old Age Living Allowance, or Disability Allowance, involving an expenditure of approximately HK$6.5 billion. Additionally, the deduction ceiling for elderly residential care expenses will be raised to HK$110,000, and the tax allowance for maintaining parents or grandparents aged 60 or above (or those eligible for Disability Allowance) will increase to HK$55,000. These measures provide immediate financial relief and help grassroots families balance work and caregiving responsibilities.
4. Cross-boundary and Primary Healthcare Support
The "Elderly Health Voucher Reward Pilot Scheme" will be extended to the end of 2028 with an additional allocation of HK$1 billion. Furthermore, the "Residential Care Service Scheme in Guangdong" will expand to cover 26 residential care homes, facilitating cross-boundary elderly care and strengthening primary healthcare.
Concerns and Recommendations
While the Budget contains positive elements, we urge the Government to further consider the struggles and challenges faced by various stakeholders amidst the economic recovery. In particular, the support for carers and students with Special Educational Needs (SEN) has not been comprehensively addressed. Our recommendations are as follows:
1. Addressing the Inadequacy of Carer Support
The Budget does not mention the regularization of the carer allowance or related arrangements. Carers of both the elderly and persons with disabilities face immense financial, temporal, and mental pressure. Current pilot schemes have excessively high eligibility thresholds, failing to cover all categories of carers. We recommend regularizing carer allowances and introducing social service vouchers for working carers. This would allow them to utilize residential and day respite services, providing much-needed relief while addressing the resource mismatch in respite services. Furthermore, we suggest providing training subsidies to encourage carers to pursue further studies or interests during their leisure time, eventually facilitating their entry into the labor market to alleviate financial pressure and embark on a "second life."
2. Extending Health Vouchers to Persons with Disabilities
We recommend further optimizing the use of Health Vouchers by extending the scheme to persons with disabilities. This would cover a broader range of dental and rehabilitation services essential to this group.
3. Leveraging Technology to Support Employment for Persons with Disabilities
Given the Budget’s significant focus on Artificial Intelligence (AI) development, we propose the introduction of financial initiatives that leverage AI to assist the employment of persons with disabilities:
- Establish an "AI for Disability Research and Development Fund": To subsidize local universities, research institutions, startups, and social enterprises in developing AI applications tailored for persons with disabilities (e.g., voice interfaces and real-time sign language translation), enabling them to overcome barriers and demonstrate their capabilities in the workplace.
- Develop an AI-driven Job Matching Platform: Utilizing ability assessments and accessibility requirement labels to automatically recommend remote or hybrid work positions.
- Provide Accessibility Upgrade Subsidies for Employers: To assist small and medium enterprises (SMEs) in procuring AI-assisted hardware and software, or to offer corresponding tax incentives.
Additionally, we suggest expanding the "Employment Programme for the Middle-aged" to include persons with disabilities. Beyond regular training, additional vocational rehabilitation training should be provided to help middle-aged persons with disabilities maintain physical functions while returning to the workforce, thereby supporting the local labor supply.
4. Incorporating Universal Design into Northern Metropolis Urban Planning
Universal Design should be integrated into the overall planning guidelines of the Northern Metropolis. To achieve urban-rural inclusion, the accessibility of the entire district must be considered in detail. We recommend a coordinated design approach—from streets and public spaces to transport hubs and building clusters—to ensure seamless and consistent accessibility. Furthermore, the Government should engage in close consultation with stakeholders during the planning stage to ensure their views on facility design are heard early on, moving away from the past practice of consulting only after facilities are completed.
5. Ensuring Fiscal Sustainability
Despite the projected surplus of HK$22.1 billion for 2026/27, the challenges of a rapidly aging population and an increasing number of persons with disabilities remain. We believe long-term planning is essential, such as the early preparation of a new "Persons with Disabilities and Rehabilitation Programme Plan" (RPP). Proactive resource reallocation based on demographic changes is necessary to avoid over-reliance on short-term "sweetener" measures.
