Policy Address 2026: Hong Kong to extend baby bonuses, increase child allowance

Hong Kong's leader, Chief Executive John Lee, unveiled a series of measures in his annual Policy Address on Wednesday aimed at increasing family size and supporting young families despite the city's historically low birth rates. The baby bonus scheme, which provides financial assistance to families for their first and subsequent children, will be extended for an additional three years instead of expiring next month.

Currently, families receive HK$20,000 for their first child and HK$30,000 for subsequent births. The government had already disbursed around HK$1.56 billion in payouts to 77,709 families as of August 31.

In addition to the extended baby bonus, the child allowance will be increased to HK$160,000 for second and subsequent children, up from HK$140,000. The tax deduction for the first two years after a child's birth will also be raised to HK$160,000. Families with newborns will receive priority access to subsidized government-flats, and the maximum loan-to-value ratio for residential mortgages will be raised to 95 percent.

Public hospitals will expand their in vitro fertilization (IVF) service quotas to 1,900 procedures annually over the next three years, and three more subsidized daycare centers for children under three will be constructed.