To give a one-off $3,000 grant to each Old Age Allowance recipient instead of raising the allowance level in the 2008-09 Budget is a painful but responsible decision to make, Secretary for Labour & Welfare Matthew Cheung says.

Speaking on a radio talk show today Mr Cheung said the one-off grant provides space for the Government to research a viable and long-term Old Age Allowance plan in the coming months. He hopes the plan will be completed by year's-end.

The plan must cover needy elderly and be viable, affordable and acceptable by society, he said.

The Labour & Welfare Bureau will analyse Hong Kong's population structure and collect views from the Legislative Council and consultative groups. He will also consult opinions from the elderly and hope the discussion will be rational and pragmatic.

For disabled people the Budget proposed providing an additional supplement of $200 a month to Disability Allowance recipients and CSSA recipients with 100% disability. Mr Cheung said this is a flexible and effective policy to encourage disabled people to participate in activities away from home and be part of the community.

He said in deciding the supplement amount the Government has taken reference from Hong Kong University research showing the transportation fee for disabled people's social activities is $45 to $48 a week. He said providing a supplement is simple and flexible so recipients can allocate resources according to their needs.