Tweaks on $2 scheme for seniors, transport fare subsidy in pipeline

Stacy Shi

The HK$2 public transport fare subsidy scheme for the elderly and people with disabilities and public transport fare subsidy scheme will be reviewed amid rapid spending growth rate, but will not be canceled, Paul Chan said.

Chan said the review is necessary as the two schemes have cost the government HK$3.5 billion and HK$4 billion in 2023-24 respectively.

"The review aims to enable the continued provision of subsidies of the schemes in a financially sustainable manner. We anticipate that the review will be completed within this year," Chan said.

A source said the eligible age of enjoying the HK$2 concessionary would remain unchanged, which was lowered to 60 years old from 65 in 2022.

"The types of public transport covered, the times a person takes public transport and whether cross-harbor sessions will continue to be covered by the public transport fare subsidy will all be reviewed," the source added.

Commuters currently can get a subsidy of one-third of their actual public transport expenses exceeding HK$400, subject to a maximum of HK$400 for each Octopus, each month.

Commenting on the review of the HK$2 scheme, Billy Mak Sui-choi, associate professor of the accountancy, economics and finance department at Baptist University, said the government could consider limiting the number of times eligible users take public transport with a concessionary fare per day or add a requirement for the users' financial situation.

"Regarding the public transport fare subsidy scheme, the government can consider to narrow the eligible persons of the scheme to residents living in suburban areas but need to travel to urban areas for work," Mak said.

Lingnan University said the government should recognize that the two schemes are universal social welfare benefits in terms of eligibility regardless of means tests.

"[The government] should take the transport types, reasonableness of its fee increases and mechanism into consideration," the university said.

Lawmaker Stanley Li Sai-wing suggested the government could also mandate a time window, such that eligible people will only be able to travel for HK$2 after peak hours every day.

An 80-year-old named Wu said he could accept an upward adjustment to 20 percent off or an increase to HK$4 as the elderly seldom travel long distances.

"We seldom go to the airport or take a ride costing more than HK$20," he said.

But another resident, Kwok, opposed the adjustment, saying: "It matters even if it only costs HK$2."

She said she had nothing to do but travel by bus to kill time after retiring, compared to having to pay over HK$40 before the scheme was launched.

stacy.shi@singtaonewscorp.com