TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 77

CONFIDENTIAL

XCC(77)65

Disability and old age allowance scheme

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The scheme is based on need. But unlike public assistance the need is established by reference to the circumstances of the indivi- duals concerned, not low income. It is accepted that the severely disabled and the elderly infirm (defined as those 75 and over) have, by virtue of their circumstances, extra needs which other members of the community do not have. In developing the thinking behind the introduction of the allowances the concept of the "vulnerable group" has been used. The secondary aim of the scheme has been to enable those eligible to contribute to family expenses and so encourage the family to continue to look after them. This has been a part of the policy of "care in the community" which is seen as a practical alternative in many cases to residential institutional accommodation; an alternative which is both more economical and more in the interests of the elderly or disabled person.

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The scheme has proved successful; and has been widely welcomed. When it was begun it was envisaged that the vulnerable group approach would be extended to other groups if the case for that extension were made out. It is now proposed that this scheme should be extended to those in residential institutional accommodation, to those aged between 70 and 75 and to those incapable of work through sickness, injury or disability; and that the "residence in Hong Kong" test should be simplified. Of these proposals, the first two, relating to the elderly, have already been approved by Honourable Members (XCC(77)60).

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There has been some public misunderstanding of the relationship between the disability allowance and the infirmity allowance, and it has been argued that both should be payable to a severly disabled person over the age of 75. In fact the disability allowance was introduced by Govern- ment as a more generous allowance for those who are least able to look after themselves. To pay both allowances to the same person would therefore be a duplication. The misunderstanding might be worse with the extension of the scheme to those incapable of working. To meet this difficulty, it is proposed to rename the scheme the community care allowance scheme (12); and to explain that a person would be entitled to an allowance under this scheme at a higher rate (for the severely disabled) or the basic rate (for the elderly and those incapable of working). The expression "infirmity allowance" would in any event be replaced by "old age allowance" as a convenient way of referring to the allowance payable to those aged over 70. (2)

津貼

Residence in Hong Kong

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It is proposed to simplify the application of the "residence in Hong Kong" test, whilst retaining the present test of one year's residence

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CONFIDENTIAL

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