Lawmaker floats cash lottery for newborns as baby bonus scheme extension set to cost HK$2.3bn

The Hong Kong government’s plan to extend a baby bonus scheme for another three years in a bid to boost fertility and assist young families amid record-low births will cost some HK$2.3 billion, according to official estimates. A pregnant woman stands in front of a Hong Kong hospital. Photo: Kyle Lam/HKFP. The cost of extending the scheme, this time with a larger cash handout for families having a second child, has been laid out in a document submitted to the Legislative Council’s (LegCo) manpower panel. The plan was proposed in Chief Executive John Lee’s Policy Address earlier this month. On top of the existing unspent balance from the first three years of the bonus scheme, the government will seek approval from the legislature’s Finance Committee to set aside an additional HK$1.6 billion for the second round of the scheme ending on October 24, 2029. ‘Conducive environment’ The first round of the scheme, which began in 2023, granted families HK$20,000 per newborn child. For the next three years from September 16, HK$20,000 will continue to be awarded for firstborns, while second and subsequent children will earn families HK$30,000. The policy was renewed “to create a conducive environment for childbearing” as the fertility rate remains low at 0.73 in 2025, the document stated. Fewer than 30,000 babies were born in Hong Kong from July 2025 to the end of June this year, marking a record low for the city. Ten years ago, the number of births was more than double this figure. As of August 31, the government had distributed payouts totalling around HK$1.55 billion to 77,709 applicants, according to the document. Some HK$732 million of the initial commitment remains unspent and will be rolled over to the renewed scheme. The baby bonus scheme also includes larger tax breaks and priority in the public rental housing queue. Families with newborns would also be able to borrow 95 per cent of a residential property’s value for a mortgage, and pay less stamp duty. At the Wednesday LegCo meeting, lawmakers questioned whether the bonuses could be bolstered, with one suggesting a random multi-million dollar cash prize for new parents. Legislator and former police officer Joe Chan said that the government could collaborate with the Hong Kong Jockey Club to set up a Mark Six-style award ranging from HK$1 million to HK$4 million for newborns. Deputy Chief Secretary for Administration Warner Cheuk said the funds that the government or the club could provide would be limited, with the financial commitment amounting to an astronomical figure. A caretaker walks with a little boy in Hong Kong. Photo: Kyle Lam/HKFP. Responding to a suggestion by Election Committee lawmaker Elvin Lee, Cheuk said that the government would consider a tax break for expenses associated with hiring a foreign domestic worker, while taking into account the government’s fiscal situation. Ken Lee, representing the labour sector, suggested that the government take inspiration from the Family Planning Association’s 1975 “Two Is Enough” advertising campaign, which promoted smaller families. Safeguard press freedom; keep HKFP free for all readers by supporting our team Support HKFP | Policies & Ethics | Error/typo? | Contact | Newsletter | Transparency & Annual Report | Apps Make a one-off donation. James Lee is a reporter at Hong Kong Free Press with an interest in culture and social issues. He graduated with a bachelor’s degree in English and a minor in Journalism from the Chinese University of Hong Kong, where he witnessed the institution’s transformation over the course of the 2019 extradition bill protests and after the passing of the Beijing-imposed security law. Since joining HKFP in 2023, he has covered local politics, the city’s housing crisis, as well as landmark court cases including the 47 democrats national security trial. He was previously a reporter at The Standard where he interviewed pro-establishment heavyweights and extensively covered the Covid-19 pandemic and Hong Kong’s political overhauls under the national security law. More by James Lee