TUESDAY, MAY 5, 1981
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PUBLIC ASSISTANCE BOOST TO RAISE LIVING STANDARD
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THE SOCIAL WELFARE DEPARTMENT TODAY (TUESDAY) ANNOUNCED FURTHER MAJOR IMPROVEMENTS TO ITS PUBLIC ASSISTANCE SCHEME WHICH WOULD MEAN A BOOST IN THE STANDARD OF LIVING IN REAL TERMS FOR THE RECIPIENTS.
FROM JULY 1 THIS YEAR, THE BASIC RATES OF PUBLIC ASSISTANCE AND ITS ASSOCIATED OLD-AGE AND DISABILITY ALLOWANCES, WILL BE INCREASED BY 25 PER CENT.
AND FROM NEXT MONTH, THE MAXIMUM LEVELS OF RENT ALLOWANCES UNDER THE SCHEME WILL GO UP BY 100 PER CENT FOR A SINGLE PERSON AND BY 50 PER CENT FOR A HOUSEHOLD OF MORE THAN ONE PERSON.
OTHER IMPROVEMENTS WILL BE TO REDUCE THE TWO-YEAR RESIDENCE QUAL IF ICATION TO ONE YEAR FOR ABLE-BODIED UNEMPLOYED ADULTS SEEKING PUBLIC ASSISTANCE, AND TO EMPOWER THE DEPARTMENT TO WAIVE THIS REQUIREMENT FOR HARDSHIP CASES.
IT IS ESTIMATED THAT, FOR A FULL YEAR, THE INCREASE FOR PUBLIC ASSISTANCE AND SPECIAL NEEDS ALLOWANCES WILL COST AN ADDITIONAL $140 MILLION, AND THAT FOR MAXIMUM RENT ALLOWANCE, AN EXTRA $5.7 MILLION.
IN 1981-82, THE TOTAL EXPENDITURE FOR PUBLIC ASSISTANCE AND SPECIAL NEEDS ALLOWANCES WILL BE $720 MILLION.
PUBLIC ASSISTANCE IS A MONTHLY PAYMENT TO COVER BASIC LIVING FOR PEOPLE WITHOUT INCOME OR UNABLE TO EARN ENOUGH, WHILE OLD-AGE AND DISABILITY ALLOWANCES ARE ADDITIONAL GRANTS TO MEET SPECIAL NEEDS.
ASSISTANT DIRECTOR OF SOCIAL WELFARE, MR STEPHEN LAW, EXPLAINED THAT THE BASIC RATE INCREASE FOR PUBLIC ASSISTANCE WAS TO ENABLE THE RECIPIENTS TO SHARE IN THE GENERALLY IMPROVED STANDARD OF LIVING IN HONG KONG.
HE SAID PREVIOUS ADJUSTMENTS TO THE PUBLIC ASSISTANCE RATES WERE SPECIFICALLY AIMED AT RESTORING THE PURCHASING VALUE OF PUBLIC ASSISTANCE PAYMENTS TO KEEP PACE WITH INFLATION.
THERE HAVE BEEN SIX SUCH ADJUSTMENTS IN THE PAST, THE LAST BEING A 22 PER CENT INCREASE IMPLEMENTED IN SEPTEMBER 1980, HE SAID, AND THESE ADJUSTMENTS WILL CONTINUE TO BE MADE AS NECESSARY.
+THE PRESENT INCREASE IS ADDITIONAL TO THESE ADJUSTMENTS AND INTRODUCES A SIGNIFICANT IMPROVEMENT IN THE PUBLIC ASSISTANCE SCHEME SINCE IT WAS FIRST SET UP IN 1971, HE ADDED.
AS REGARDS THE RENT ALLOWANCE PAYABLE FOR PUBLIC ASSISTANCE RECIPIENTS, MR LAW SAID THE EXISTING MAXIMUM LEVELS WERE EQUATED TO THE HIGHEST PUBLIC HOUSING RENTS.
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