The Old Age Allowance may cost the Government $1.17 billion should the permissible limit of absence from Hong Kong under the scheme be relaxed to a year.

However, the Health, Welfare & Food Bureau clarifies the estimation is based on the assumption that should there be no restriction on the limit of absence from Hong Kong, the relaxation may attract those not currently receiving the allowance to apply for it.

According to the latest statistics, about 150,000 people 65 and above are not receiving Comprehensive Social Security Assistance. Should all apply, the Government may incur additional expenditure of $1.17 billion. Currently, applicants aged 65 to 69 have to go through a means test, while there is no such requirement for those 70 or above.

The estimation is based on the elderly population in 2004, and has not taken into account the likely increase in population.

On a media report saying that according to Social Welfare Department records, the annual overpayment on cases which had breached the permissible limit of absence amounted to about $15 million, the bureau said the figure reflected only the actual cases which had breached the current permissible limit of 180 days absence, and was different from the estimation on the number of possible new applicants should the absence limit be relaxed. Therefore, direct comparison between the two figures is inappropriate.