FRIDAY, AUGUST 15, 1980

FEES REVISED FOR RESIDENTIAL WELFARE INSTITUTIONS

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THE GOVERNMENT TODAY (FRIDAY) ANNOUNCED THAT, FROM OCTOBER 1, FEES FOR RESIDENTIAL SERVICES FOR THE ELDERLY AND THE DISABLED WOULD BE REVISED ON THE BASIS OF A NEW FORMULA RECOMMENDED BY THE SOCIAL WELFARE ADVISORY COMMITTEE (SWAC) AND ENDORSED BY THE REHABILITATION DEVELOPMENT CO-ORDINATING COMMITTEE (RDCC).

THIS FOLLOWS A DETAILED STUDY BY A WORKING GROUP OF THE SWAC, WHICH WAS SET UP TO CONSIDER CLAIMS BY THE VOLUNTARY SECTOR THAT INCREASED FEES WOULD CREATE HARDSHIP.

UNDER THE NEW FORMULA, FEES WILL IN FUTURE BE LINKED TO, AND AUTOMATICALLY ADJUSTED AGAINST, CERTAIN FIXED PERCENTAGES OF THE PREVAILING RATES OF SOCIAL SECURITY BENEFITS, INCLUDING BOTH PUBLIC ASSISTANCE AND SPECIAL NEEDS ALLOWANCES. THESE PERCENTAGES ARE NOT IMMUTABLE AND WILL BE SUBJECT TO REVIEW.

THE FEES WILL COMPRISE TWO ELEMENTS - A PERCENTAGE OF THE PUBLIC ASSISTANCE BASIC RATE BASED ON THE TOTAL OF THE PERCENTAGES ATTACHED TO THOSE COMPONENT ITEMS IN THE PUBLIC ASSISTANCE INDEX PROVIDED BY A SPECIFIC TYPE OF INSTITUTION= AND A PERCENTAGE OF THE SPECIAL NEEDS ALLOWANCE REPRESENTING THE SERVICES PROVIDED BY AN INSTITUTION AND WHICH ARE NOT INCLUDED IN THE PUBLIC ASSISTANCE INDEX.

THE COMBINATION OF THESE TWO ELEMENTS WILL ENSURE THAT THE RESULTING FEE LEVELS REFLECT PART OF THE COSTS OF SERVICES WHICH ARE PROVIDED BY THE DIFFERENT TYPES OF INSTITUTIONS. A LARGE MEASURE OF THE FULL COSTS OF SERVICES ARE MET BY THE GOVERNMENT BY SUBVENTIONS TO VOLUNTARY AGENCIES.

THE FEES DETERMINED WILL CONSTITUTE A PORTION ONLY OF THE SOCIAL SECURITY BENEFITS RECEIVED BY AN ELDERLY OR DISABLED PERSON, AND WILL ENABLE THEM TO HAVE MONEY LEFT OVER TO SPEND, AS THEY WISH, AFTER PAYING THEIR FEES,

A GOVERNMENT SPOKESMAN SAID THE VAST MAJORITY OF THE ELDERLY AND SOME OF THE DISABLED PEOPLE IN RESIDENTIAL CARE RECEIVE EITHER PUBLIC ASSISTANCE OR SPECIAL NEEDS ALLOWANCE, OR BOTH.

PUBLIC ASSISTANCE, THE SPOKESMAN SAID, IS INTENDED TO MEET THEIR BASIC NEEDS, AND THE SPECIAL NEEDS ALLOWANCE IS FOR SERVICES ARISING OUT OF THEIR SPECIAL NEEDS.

+A FORMULA BASED ON THESE TWO ELEMENTS IS THEREFORE A LOGICAL AND EQUITABLE METHOD OF ASSESSING FEES AND WILL ENSURE THAT OLD OR DISABLED PEOPLE IN INSTITUTIONS WOULD BE MEETING COSTS ON THE SAME TERMS AS THOSE LIVING IN THE COMMUNITY WHO HAVE TO MEET THEIR BASIC AND SPECIAL NEEDS OUT OF THEIR SOCIAL SECURITY BENEFITS, HE SAID.

THE SPOKESMAN SAID FEES FOR REHABILITATION SERVICES, FOR HISTORICAL REASONS, TENDED TO BE LOWER THAN THOSE FOR THE ELDERLY.

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