Commission backs new allowance

October 18, 2012

Elderly Commission members will ask the Government to implement the old age living allowance as soon as possible to help alleviate poverty.
 
At a meeting today, the commission agreed that there should be a mechanism for income and assets declaration, adopting the corresponding limits of the existing normal old age allowance, to ensure that limited public resources could target helping seniors in need.
 
It also urged the Legislative Council Finance Committee to approve the funding proposal as soon as possible, for the benefit of more than 400,000 seniors.
 
Its Chairman Prof Alfred Chan said Hong Kong's population is ageing rapidly. The number of elderly people aged 65 or above will surge from about 980,000 at present to 2.56 million in 2041, representing 30% of the population at that time. "It will put heavy pressure on our welfare and medical systems."
 
He also said the commitment must be financially viable as the new allowance aims to alleviate poverty. 
 
He added the commission was pleased the Government had devised a set of simplified and convenient application procedures for different types of seniors, and the Social Welfare Department would start preparatory work once the legislature had approved the funding.
 
The commission noted the allowance's payment rate would be adjusted annually according to the Social Security Assistance Index of Prices, and the income and asset limits for the allowance will also be adjusted annually accordingly to the established mechanism.
 
In the long run, it hopes the task force to study Hong Kong's social security and retirement protection systems, to be set up under the new Commission on Poverty and chaired by the Chief Secretary, would examine closely how seniors' livelihood could be improved.