A national subsidy program offering consumption vouchers for elderly care has driven 11.5 billion yuan ($1.66 billion) in spending since its nationwide launch in January, benefiting more than 1.05 million seniors with moderate to severe disabilities, authorities said on Tuesday.

The program, mandated in this year's Government Work Report and rolled out after pilot schemes in selected regions such as Zhejiang and Shandong provinces last year, provides electronic discount vouchers through the "Minzhengtong" app.

Eligible seniors receive discounts of 40 percent for institutional care and 50 percent for community — or home-based care, capped at 800 yuan per person per month for each category. The initiative will run till the end of December.

"The subsidy program is a vivid example of a nationwide 'investment in human capital' policy within the service consumption sector," Li Banghua, director of the elderly care services department at the Ministry of Civil Affairs, told a news conference.

He said to date, more than 3.32 million vouchers worth 2.35 billion yuan have been redeemed.

The policy applies to seniors assessed as having moderate, severe or complete disabilities, regardless of their household registration.

Eligible individuals can apply where they currently live, and the subsidy can be combined with existing benefits such as long-term care insurance, Li said.

Ge Zhihao, deputy director of the social security department at the Ministry of Finance, said the central government had allocated 12.09 billion yuan in special subsidies for the program, covering 85 to 95 percent of costs depending on the region, with local governments providing matching funds.

"The central government will continue to disburse funds in batches based on implementation progress to ensure timely and sufficient funding," he said, adding that authorities would strengthen oversight to prevent fraud and misuse.

Local officials and industry representatives cited early signs of the program's success.

In Wuhan, a megacity in Central China's Hubei province, 18,300 seniors have benefited from the program as of Monday, with 30.7 million yuan in vouchers redeemed, said Liu Xin, director of the city's civil affairs bureau.

"We have built a database of seniors with moderate to severe disabilities and taken a door-to-door approach to help them apply," he said, noting that the city had integrated the national subsidy with local programs to maximize benefits.

In North China's Inner Mongolia autonomous region, Tongliao city has focused on reaching seniors in sparsely populated rural and pastoral areas through a mobile "caravan" service, said Li Yajun, deputy director of the local civil affairs bureau.

"Home-based care vouchers account for more than half of redemptions in our city, one of the highest rates nationwide," Li said.

For businesses, the subsidy has boosted occupancy rates and demand.

Zhejiang-based elderly care provider Wuchan Zhongda Jinshi Group — a subsidiary of the WZ Group, a Fortune Global 500 company — has helped 4,466 seniors apply for the subsidy since pilot programs began in July last year, said Chairman Zheng Guangliang, adding that one facility had seen occupancy jump to 100 percent from 72 percent after the policy was introduced.

"The subsidy effectively reduces the financial burden on families with disabled seniors while boosting occupancy rates and driving improvements in service quality," Zheng said.

In Shandong province, a service provider known as "Sunshine Sisters" has seen a 25 percent increase in home-based care orders since the introduction of the subsidy, creating 80 new care worker positions, said its chairwoman Zhuo Changli.

"A small voucher has genuinely helped seniors in need and given more families confidence in elderly care," she said.

She cited the example of 98-year-old Zhang, a resident of the provincial capital Jinan, who has moderate disabilities and requires daily care.

With community assistance, Zhang secured monthly consumption vouchers worth 800 yuan to cover services such as cleaning, bathing and rehabilitation care, providing relief for her elderly son and significantly improving her quality of life.

Looking ahead, Li Banghua said authorities would expand the range of eligible services, encourage more providers to participate and simplify the application process.

"We will strengthen oversight to ensure every subsidy is well spent," he said, adding that data analysis would be used to monitor transactions and prevent irregularities.

lilei@chinadaily.com.cn