Enhancing financial support for caregivers: Reforming Hong Kong’s cash allowance system

Abstract

Financial support for caregivers can significantly alleviate the burden caused by the loss of income and increased caregiving expenses. In 2016, Hong Kong introduced a caregivers' allowance, providing HKD 2,400 per month, equivalent to about 15% of the median employment income in that year[1], to low-income family caregivers of elderly and disabled family members. The amount increased to HKD 3,000 in 2023, keeping the same percentage of median earning. However, this benefit is only available to those who do not receive any other social security benefits, resulting in a very small percentage of eligible caregivers.

In 2022, a government-commissioned consultation report proposed reforms to the cash allowance for caregivers. The government accepted all the recommendations, including allowing caregivers to cash in a portion of the Community Care Service Voucher for the elderly, which ranges from HKD 4,372 to HKD 10,455 per month, with a means-tested co-payment arrangement. This voucher system operates alongside the non-means-tested community care services provided by NGOs, which have longer waiting times. The reform aims to cover the cost of meals and personal care provided by caregivers, replacing those services typically offered by service providers. Since the government controls the number of vouchers issued (which totaled 12,000 as of 2025), the arrangement is theoretically financially neutral for the government. According to the consultation report, the recommendations were welcomed by most caregivers but were less popular among service providers.

This presentation examines the evolution and controversies surrounding cash allowances for caregivers of the elderly in Hong Kong. It will compare these allowances with other prominent models of caregiver support in various countries and regions. Additionally, the presentation will explore potential mechanisms to ensure that care recipients receive adequate support and services if such reforms are implemented.

[1] https://www.censtatd.gov.hk/en/web_table.html?id=210-06315A#