Scrapped $2500 student grant saves $2 bn in expenditures: sources

The Education Bureau will abolish the provision of the student grant of HK$2,500 for secondary day-school, primary school and kindergarten students from the 2025/26 school year, according to the Budget announced on Wednesday.

Sources revealed that the government could free up HK$2 billion in expenditures by slashing the grants.

Students with financial needs may apply for assistance through various subsidy programs that require income and asset assessments, while the abolishment aligns with the targeted poverty alleviation policy, according to the source.

Meanwhile, a task force comprising members from the Bureau and the education sector will be established to oversee the consolidation of various subsidy programs, with the list of members anticipated to be finalized by April.

The sources noted that the proposed team will study the possible adjustment of subsidies allocated to primary and secondary schools, aiming for a more flexible disbursement system based on development priorities.

It added that certain programs, such as the Life-wide Learning and Sister School Grant, will be consolidated to improve flexibility and resource utilization.

It is also understood that general funding for public schools and kindergartens will be reduced by approximately 2 percent this school year.