Hong Kong's Fiscal Secretary, Paul Chan Mo-po, announced sweeping cuts to educational resources, including the cancellation of the long-standing HKD 2,500 student allowance, effective September 2025. This decision has sparked outrage among communities reliant on this financial support, with many expressing concerns about the increased burden on low-income families.
During the budget presentation on February 26, 2025, Chan revealed plans to save nearly HKD 2 billion annually through the elimination of the student allowance. The allowance, which provided financial assistance without the need for income verification, had benefited students across kindergartens, primary, and secondary schools.
Chan justified the cuts as part of the government's efforts to implement more targeted poverty alleviation measures, asserting, "The aim is not only to cut expenditures but also to streamline the support system for students to avoid redundancy." This pragmatic approach, he argued, would allow for more effective allocation of resources aimed at those truly in need, rather than providing blanket assistance.
Critics of the decision, including advocates for children's rights and parents affected by the cuts, contend it undermines the educational opportunities for students from low-income families. Carmen, representing the Coalition for the Rights of Children, stated, "$2,500 is significant for low-income families; it helps cover school uniforms, books, and other necessary expenses." This sentiment was echoed by Wang, who articulated the struggles faced by her family, saying, "For families reliant on social assistance, this cut will only deepen struggles to provide education for their children."
Community reactions were palpable during live-stream events where many gathered to voice their opposition to the cuts. Parents expressed fear about their ability to effectively support their children’s educational needs without the allowance. "Every march will only lead to more hands reaching out to the government’s resources to be able to afford our daily essentials," commented Lin, highlighting her continuous struggles to provide nutritious food for her family, let alone educational resources.
The government reassured citizens by stating other forms of support for economically disadvantaged students will remain available, including various educational grants and subsidies. Specific measures discussed included assistance for school supplies, transportation rebates, and exam fee reductions, aimed at helping those truly in need. While Chan acknowledged these arrangements, many fear they will not suffice to fill the gap left by the allowance.
The cancellation of the HKD 2,500 student allowance marks a significant shift in the Hong Kong government's approach to educational funding. The financial assistance has been provided without asset checks since its introduction and became permanent during the 2020/2021 school year, covering all students enrolled in local and non-local programs. Critics argue this swift removal doesn’t account for the reality faced by students and families needing consistent financial support amid rising education costs.
With the cancellation looming, concerns have risen within the community about widening educational inequalities as families grapple with the additional burden. The audience at the budget's live-stream event was vocal, articulately expressing their fears about deprived opportunities for their children. "It’s imperative we provide our children every opportunity to learn and grow," remarked one attendee, succinctly capturing the crux of the issue.
Going forward, the government's proposed integration of existing assistance programs may offer some relief, but many remain skeptical. With pressures mounting on low-income families and suggestions for new application processes for these other funds, the future appears uncertain.
Advocates continue to call upon the government for transparency during these cuts and urge for policies ensuring equitable educational access. The outcry surrounding the student allowance cancellation serves as a stark reminder of the challenges faced by economically vulnerable communities, emphasizing the need for comprehensive support structures to help them thrive.