TNAG-1073-FCO40-1323-Policy-of-the-Government-of-Hong-Kong-on-education-including-1981 — Page 77

Principles of a New Scheme of Assistance

9.7

It is considered that neither kindergartens nor child care centres should be directly subvented but that instead the Government's support should be directed to helping low income families meet the approved fees imposed by the institutions. The aim would be to enable all families to send their children to a kindergarten or, if there is proven social need to a child care centre, by providing fee assistance to low income families on a means-tested basis. Consequently, in future, child care centres will not be directly subvented and centres may accept children who do not meet the eligibility criteria for fee assistance, provided that their families are prepared to pay the full fees.

9.8

However, in view of the general shortage of child care centre places, it will be necessary to ensure that enough places continue to be available to children with a genuine need for full-day care. It is therefore proposed to encourage children with no real need for full day care to attend a kindergarten, by including 'social need' as a criterion for fee assistance in the case of a child care centre place but not in the case of a kindergarten place.

9.9

It is proposed that the existing criterion of an income of not more than 1% times the public assistance level used to determine eligibility for a subvented child care centre place should be abolished and replaced by a sliding scale of assistance. Such a sliding scale would be more sensitive to the needs of individual families and their ability to pay fees. Under such a scheme, a family whose income is at or below the public assistance level would have the approved fees of a child care centre or kindergarten paid in full up to a maxi- mum level determined by the Government, whereas a family earning an income above this level would receive proportionately less assistance. However, the average fees in child care centres will be much higher than those in kinder- gartens even after allowing for the increases which may arise from the proposed improvements in kindergarten standards and facilities. The allowances for places in child care centres would therefore need to be generally higher than in kindergartens. This is considered appropriate in view of the support which the Government has traditionally provided for child care centres.

9.10

In calculating a family's total income, it is considered that a deduction should be allowed for rent. Families in private housing accommodation pay considerably more in rent than those in public housing. As many people have to live in private accommodation by force of circumstances rather than by choice, there would appear to be a case for recognising the higher rent that those in private tenancies have to bear. It is therefore proposed that the allowable deduction for rent should take this difference into account. This deduction should not exceed 20% of the total family income. It is proposed that the level of allowance should be reviewed from time to time. It is also proposed that families purchasing their own homes under a Home Ownership Scheme should be similarly considered.

9.11

As regards the sliding scale of assistance present thinking suggests it would be appropriate for the amount of Government assistance to be reduced by 20% for every dollar earned by the family above the public assistance level. In determining this sliding scale the effect on the proportion of parents who would receive some assistance was taken into account. The scale has been specifically designed to ensure that families at present eligible

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