TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 296

Table 2

Present public assistance index weightings (1976

Section

Foodstuffs

)

Weightings

79 %

Fuel & light

5.5%

Clothing & footwear

2.7%

Durable goods

0.1%

Miscellaneous

7.7%

Transport & vehicles Services

2.0%

2.7%

9.7

The Government reviews the scale of assistance each month, in the light of changes in the public assistance index. In monitoring the rate of increase, a month by month comparison is not used, because this would produce undesirable fluctuations. Instead, a 12 month centred moving average of the changes in the index is used as an indicator. This provides an effective measures of the general direction in which prices are going, and smoothes out the peaks and troughs. The Government believes that the present arrangements are generally satisfactory.

Welfare allowance scheme

9.8

The level of allowance provided under the scheme is not related to the cost of particular items of everyday life. The aim is to provide help to the person qualifying for an allowance, not to pro- vide an income on which he would be able to live. When the scheme was introduced, the Government's view was that it would not be practicable to calculate how much more it costs a disabled or infirm person to live at the same standard as a person who is not disabled or infirm. The necessary information was not available; and it would have been a difficult task to obtain it and even if obtained, it would have been open to legitimate dispute as to its reliability. Instead, it was decided to relate the amount of the welfare allowance to the public assistance rate for a single person. The higher (disability) rate was taken as the full assistance rate for a single person; and the basic (infirmity) rate was taken as half the assistance rate for a single person. The allowances have continued to be related to the equivalent public assistance rate, and are increased when the scale of assistance is increased.

9.9

The Government does not propose to break the link between the public assistance scheme and the welfare allowance scheme. The Green Faper "Services for the Elderly", however, suggests that with the replacement of the infirmity allowance by the old age allowance, it might be desirable to investigate the additional living costs of the elderly. Such an investigation might produce arguments for breaking the link between the public assistance scheme and the welfare allowance scheme.

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