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SOCIAL WELFARE

Social Security

Social security is a major social welfare programme aimed at meeting the needs of those vulnerable groups in the community requiring financial assistance. The Public Assistance and Special Needs Allowance Schemes are the key elements in the entirely non-contributory social security system. They are supplemented by three other schemes: Criminal and Law Enforcement Injuries Compensation Scheme, Traffic Accident Victims Assistance Scheme and Emergency Relief. The social security programme provides an effective 'safety net' for those who need assistance.

The Public Assistance Scheme, which is means-tested, provides cash assistance to those in need. It is designed to raise the income of needy individuals and families to a level where essential requirements are met. Persons who have resided in Hong Kong for not less than one year may be eligible if they can provide documentary proof that their income and other resources are below the prescribed levels. An able-bodied unemployed person aged 15 to 59 who is available for work is, in addition, required to register with the Labour Department for job placement in order to qualify for assistance. The Director of Social Welfare is vested with discretionary power to waive the one-year residence requirement in cases of genuine hardship.

The rates of assistance were increased across the board by 10 per cent in April 1990 to keep pace with inflation. The current monthly basic allowances are $685 for a single person, $515 for each of the first two eligible members of family, $505 for each of the next - - two eligible members and $495 for each additional eligible member. Separate allowances

are paid to cover the cost of accommodation.

A monthly old-age supplement of $343 is given to those aged 60 to 69, and $393 to those aged 70 and over, who are not receiving a disability supplement or a special needs allowance under a separate scheme. A disability supplement of $343 per month is payable to those who are certified to be partially disabled with at least 50 per cent loss of earning capacity and who are not in receipt of an old-age supplement or a special needs allowance. Those who have received public assistance continuously for 12 months are given an annual long-term supplement to enable them to meet the cost of replacing household wares and durable goods: $870 for a single person; $1,740 for a family with two to four members; and $2,610 for a family with five or more members. In addition, special grants are given, where necessary, to meet other needs in particular circumstances. To encourage self-help, an individual's monthly earnings of up to $515 may be disregarded in the calculation of assistance payable.

At the end of 1990, the number of public assistance cases was 68 500, compared with 66 000 in 1989. The majority of recipients are the elderly, the disabled and single parent families. Expenditure on public assistance in the 1989–90 financial year amounted to $854,8 million, representing an increase of 9.7 per cent over the previous year.

The Special Needs Allowance Scheme provides flat-rate allowances for the severely disabled and the elderly. Any person, regardless of age and financial means, who is certified to be severely disabled and who has resided continuously in Hong Kong for at least one year immediately before application, is eligible for a disability allowance. To be eligible for an old-age allowance, a person must have resided continuously in Hong Kong for at least five years prior to attaining the qualifying age.

On April 1, 1990, the higher disability allowance, which is twice the normal rate, was extended to all severely disabled persons who require constant attendance from others in