‘Worst is yet to come’: Hong Kong’s early childhood sector hit hard by funding cuts

Hong Kong's early childhood education sector is bracing for its most severe funding crisis in over a decade, with the government's 2026-27 budget allocating just HK$4.5 billion (US$575 million)—a 6.6% reduction from current levels. This represents the lowest subsidy amount in more than ten years and comes alongside the cancellation of two key kindergarten grants. The cuts are attributed primarily to plummeting enrollment, with projections showing only 105,800 toddlers enrolled in kindergartens next school year, of which just 79,000 will attend subsidized institutions—both figures marking record lows. The early childhood sector suffered the largest resource reduction across all areas overseen by the Education Bureau, far exceeding the minimal cuts to primary (less than 2%) and secondary (1%) education.

Educators are warning that the 'worst is yet to come' as the sector faces a perfect storm of decade-low subsidies, canceled grants, and declining student numbers. The number of preschools has already fallen to a 13-year low, with further closures and significant job losses anticipated. In stark contrast to the early childhood cuts, Hong Kong's tertiary and vocational education sectors will receive a 4% budget increase. The disproportionate impact raises concerns about long-term consequences for early childhood development and accessibility, particularly for low-income families who rely on subsidized institutions, potentially creating ripple effects throughout Hong Kong's education system and workforce development.