CHAPTER 5
WELFARE ALLOWANCE
Basis of scheme
5.1
A "disability and infirmity allowance" scheme was launched in 1973, with the payment of flat rate, non means-tested allowances to the severely disabled and to the elderly. There are two rates of allowance, a higher rate (currently $180 a month, $200 a month from February 1978) for a severely disabled person and a basic rate (currently $90 a month, $100 a month from February 1978) for a person aged 75 or over who is not disabled. With the extension of the scheme that is proposed, the present name of "disability and infirmity allowance scheme" is no longer appropriate: and it is proposed to rename it "welfare allowance scheme".
5.2
A welfare allowance is based on need. Unlike the public assistance scheme, the need is established by the circumstances of the individual, not by reference to low income. It is accepted that the severe- ly disabled and the elderly constitute "vulnerable groups" with needs which other members of the community do not have. Another benefit of the allowance is that it enables those eligible to contribute to family expenses, which encourages the family to continue to look after them. This is seen as a desirable alternative, which is more economical and better suited to the interests of the elderly or disabled person than residential institutional accommodation.
5.3
The scheme has proved successful and has been widely welcomed. It is proposed that it should be extended to
(a)
those in residential institutional accommodation,
(b)
those aged between 70 and 75 and
(c) those incapable of work through sickness, injury or
disability.
Residential institutional care
5.4
At present the allowance is not payable to those in residential institutional accommodation. It was thought that this might duplicate Government help, since the person concerned was living in accommodation provided by the Government directly or indirectly with the aid of Government funds. Moreover, it was considered that restricting payment to those remaining in the community, would encourage people not to enter scarce institutional accommodation unless the need was urgent.
5.5
As the Green Paper "Services for the Elderly" explains, the Government has reviewed this part of the scheme and concluded that this restriction should be removed. Accordingly, it is proposed that in future the allowance should be paid to all those eligible, whether or not they are living in institutional accommodation.
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