HK$2.29 billion in funding sought for Hong Kong baby bonus scheme, with number of births expected to rise by a fifth to 39,000 annually
The amount proposed aims to cover eligible babies born within the three-year time frame between last October 25, when the scheme was announced, and October 24, 2026.
The government said it expected the bonus could be disbursed starting from late February, subject to the Finance Committee’s approval.
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“We aim to create a childbearing-friendly environment while building a social consensus of reversing the trend of declining fertility rate,” the government said in the paper.
“We hope that the Newborn Baby Bonus will provide an impetus for hesitant families to proceed with childbearing.”
Hong Kong’s birth rate fell to a record low in 2022, with the average number of children per woman dropping to 0.9.
The number of new births fell drastically from 52,856 in 2019 to 43,031 in 2020, and continued to dip to 36,953 in 2021 and 32,501 in 2022.
The city has one of the longest life expectancy rates in the world. The proportion of people aged 65 and above will increase from 20 per cent to nearly one-third over the next decade, according to authorities.
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Chief Executive John Lee Ka-chiu announced in his policy address that the government would provide a one-off HK$20,000 bonus to eligible parents for their newborn babies, with the scheme to last for three years.
The baby must be born in Hong Kong, while either parent must be a permanent resident at the time of application.
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The government projected that about 95 per cent of newborns in Hong Kong, with either one or both parents are permanent residents, would be eligible for the bonus in each of the next three years, based on birth registration statistics of 2022.
Aside from the cash handout, families with newborn babies will also enjoy a better chance to buy subsidised flats, with 10 per cent of such homes for balloting reserved for them. They can also join the normal balloting with other applicants to purchase a flat. They will also be given priority to select homes.
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Eligible families can enjoy the benefits until their children reach the age of three years.
Another new scheme will cut the waiting time for public housing flats by a year for applicants with newborns, starting from April.
Other policy address measures to create a better childbearing environment include raising the accommodation-related tax deduction ceiling, as well as increasing the public service quota for assisted reproductive services and providing a tax deduction for them.
Increasing the Working Family Allowance as well as childcare centre places and allowances, are among other measures.