TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 275

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Family means test

4.6

The Government is also satisfied that eligibility for public assistance should continue to be based on a family means test. Thus, everyone living in a household is taken into account, with the exception of married children with their own families. The alternative would be to follow the European system, under which dependants of working age are not treated as family members, but this change would involve a radical restructuring of the public assistance scheme. The Government does not believe that such a change, which would not be in keeping with the family tradition in Hong Kong, would attract general support.

Age of retirement

4.7

The unemployed first became eligible for public assistance in April, 1977, the age of retirement for the purposes of public assistance being set at 55. Now that the unemployed are able to apply for assistance, it is proposed to bring the age of retirement in the public assistance scheme into line with the proposed old age supplement by increasing it from 55 to 60. Treating 55 as the age for retirement does not reflect general practice in Hong Kong where, according to the 1976 By-Census, 85% of men aged 55-59 were in the labour force. One result of this change will be to require those aged between 55 and 60 to register with the Employment Service of the Labour Department as a condition of receiving assistance. The Director of Social Welfare, however, would have discretion not to require a person over 55 to register if it appeared unreasonable (because, for example, of a person's general health).

Assessment of need

4.8

The present structure of the public assistance scheme provides a flexible and effective method of assessing need in a fairly simple and understandable way. In essence,

the scheme operates on the following basis. The family resources (income and savings) are taken into account against a sliding scale of allowances based on family size, plus an allowance for rent and (where appropriate) an allowance for special expenses. The amount by which the total allowances exceed the family resources becomes the monthly public assistance allowance.

Scale of assistance

4.9

The public assistance scheme is unlike most social assistance schemes in having an incremental scale of assistance, whereby an amount is added for each additional member, the amount added reducing with the size of the family. Thus, under the present monthly scale $180 is allowed for a single person on his own; for a family $130 is allowed for each of the first 3 members, $105 for each of the next 3 members and $80 for any subsequent family member. After February, 1978, these amounts will be $200, $145, $120 and $90 respectively. This system contrasts with that used in most social assistance schemes, where an additional amount is added for each additional family member, irrespective of the size of the family: but smaller sums are added for children, the amount varying according to the age of the child.

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