The handbrake mechanism is purely mechanical, a threaded pushrod screwed into the back of the piston, worked by a bellcrank off the handbrake cable. As the pads wear, the piston slowly climbs up the threaded rod, moving up every time you apply the footbrake.
To get it back down the rod, you need to push it in and turn it at the same time. You can do this with long-nosed pliers, but it's a nasty job, even in a pit, and if you slip you'll ruin the dust seal gaiter.
By law the handbrake has to be a completely separate mechanism from the footbrake, and this is the cheapest way, common on most cars with rear disks. It is the source of a lot of rear brake problems, as it often jams. Having a little drum brake inside the disk is a much better idea, as drum brakes self-servo i.e. apply themselves more strongly as the wheel turns. If your disks are hot and you don't apply the handbrake strongly enough, a disk-handbrake can lose effectiveness and your car can roll away
Get a replacement for the leaking hose. There's no way to repair it, brake pressures are too high and you can't get a Radweld equivalent to put into the brake fluid