TNAG-0876-FCO40-1086-Development-of-social-welfare-policy-in-Hong-Kong-1979 — Page 211

3.4

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(iii) in its treatment of a person's resources,

the

Public Assistance scheme relies on the general

principle that all a person's income (except any Special Needs Allowance) and disposable capital

(except for savings up to a prescribed level)

should be taken into account in assessing his need

for Public Assistance. The few exceptions that are

made to this general rule consist essentially of

very small amounts which voluntary agencies may give

towards essential household expenses. However, as

an incentive to self-help for those who are not

expected to seek work as a condition of receiving

ublic ssistance, such as the elderly and young

widows, a system of "disregarded income" has been

introduced. Earnings not exceeding $50 per month

will be disregarded for the purpose of assessing

entitlement for Public Assistance. 50% of the next

$200 earnings will also be disregarded, thus

allowing a total of $150 in disregarded income.

All earnings above $250 a month will be taken into

account. The Government does not intend to adjust

this level frequently since increasing the amount

will not help those who are worse off and have no

disregarded resources. In general, additional funds

available for the Public Assistance scheme would be

better spent on improving the level of assistance

either generally or for specific groups of beneficiaries.

It is now proposed to introduce a disability supplement in the light of public comments and the advice of the Social Welfare Advisory Committee as discussed in paragraph 3.5 to 3.12 below.

CONFIDENTIAL

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