TUESDAY, AUGUST 24, 1993

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IMPROVEMENTS TO SOCIAL SECURITY SCHEMES

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SOCIAL SECURITY RECIPIENTS HAVE A REAL BOOST IN PAYMENTS, RANGING FROM FOUR PER CENT TO 37 PER CENT, UNDER THE NEW COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME FROM JULY 1.

TODAY

ADDRESSING A CITY LIONS CLUB OF HONG KONG LUNCHEON (TUESDAY), THE DIRECTOR OF SOCIAL WELFARE, MR IAN STRACHAN, SAID WITH IMPROVEMENTS TO A GREAT VARIETY OF SUPPLEMENTS AND SPECIAL GRANTS, THE STANDARD OF LIVING OF THESE RECIPIENTS HAD NOT LAGGED BEHIND THAT OF THE GENERAL POPULATION.

THESE IMPROVEMENTS INCLUDE LONG-TERM SUPPLEMENT FOR LARGER FAMILIES, MEAL ALLOWANCE FOR FULL-DAY STUDENTS, REVISION OF RENT

ALLOWANCE AND OTHER IMPROVEMENTS TO MEET SPECIFIC NEEDS.

HE SAID THE NEW COMPREHENSIVE SOCIAL SECURITY ASSISTANCE SCHEME WAS BUILT ON THREE SIMPLE COMPONENTS: A RANGE OF STANDARD RATES FOR DIFFERENT CATEGORIES OF CUSTOMERS, RENT, AND PROVISION FOR SPECIAL GRANTS TO MEET INDIVIDUAL NEEDS.

"ONE CRITICISM HAS BEEN THAT THE STANDARD RATES ARE INADEQUATE. BUT REGARD MUST BE GIVEN TO THE EXTRA ASSISTANCE PAYABLE UNDER SPECIAL GRANTS,' HE ADDED.

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HE NOTED THAT TAKING ALL THOSE COMPONENTS INTO ACCOUNT, THE AVERAGE SOCIAL SECURITY PAYMENTS TO A FAMILY OF FOUR NOW REACHED TO ABOUT $5,800 A MONTH, WHICH IS 92 PER CENT OF AN AVERAGE MANUFACTURING WORKER'S WAGE. THE AVERAGE PAYMENT FOR A SINGLE PERSON IS $2,000.

MR STRACHAN ALSO INTRODUCED TO THE CITY LIONS THE MAJOR NON-CONTRIBUTORY SOCIAL SECURITY ALLOWANCES WHICH COMPRISE OLD AGE ALLOWANCE, HIGHER OLD AGE ALLOWANCE, DISABILITY ALLOWANCE AND HIGHER DISABILITY ALLOWANCE.

"THESE ARE DESIGNED TO PROVIDE A MONTHLY FLAT-RATE ALLOWANCE FOR THE ELDERLY AND THE SEVERELY DISABLED PERSONS TO MEET THEIR SPECIAL NEEDS ARISING FROM OLD AGE AND DISABILITY, HE SAID.

HE NOTED THAT SOME 400,000 ELDERLY AND SEVERELY DISABLED PERSONS WERE RECEIVING SUCH ALLOWANCES, ADDING THAT PAYMENT RATES WERE REVISED ANNUALLY TO TAKE ACCOUNT OF INFLATION,

HE SAID THE NUMBER OF ELDERLY PERSONS AGED 65 AND ABOVE WAS PROJECTED TO INCREASE FROM 534,700 IN 1993 TO 720,600 IN 2002.

"THIS WOULD MEAN MUCH LARGER WELFARE EXPENDITURE IN THE YEARS TO COME, HE SAID.

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MR STRACHAN NOTED THAT THE FAMILY WAS ALSO A SOURCE OF SUPPORT AND STRENGTH IN THE CARE OF THE INFIRM, ELDERLY, DISABLED PERSONS AND YOUNG PEOPLE.

/"THE DEPARTMENT

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