Compensation offered to elderly welfare recipients

Chief Executive Carrie Lam Cheng Yuet-ngor on Friday announced a new cash supplement scheme to all able-bodied people aged 60 to 64 — after the government raised the age threshold for one of its major elderly allowances from 60 to 65 years.

The HK$1,060 monthly allowance, namely Employment Support Supplement, will be given to eligible people at the same time as a policy change to the Comprehensive Social Security Assistance takes effect from February.

The government’s decision to revise the existing old-age benefit triggered a backlash in the community — including lawmakers across the political spectrum, as well as from seniors, social welfare organizations and social workers.

Amid controversy over the shift, the government introduced the HK$1,060 allowance — which will exactly cover the subsidy gap between the amount for adults and for elderly recipients under the new CSSA scheme.

The recipients won’t need to file any application documents; the new payment will not lead to extra administrative costs, explained Lam.

Lam denied the redefinition of the elderly CSSA was to “save money”. She explained the decision was to match the allowance scheme with Hong Kong’s population policy; it also aims to encourage those aged between 60 and 64 to stay in employment.

Lam admitted there is room for improvement between implementation and planning of the policy. But she said the new measure was not due to “backing down” or “yielding to pressure”.

Secretary for Labour and Welfare Law Chi-kwong said although the elderly CSSA’s age limit will be raised, all able-bodied people aged 60-64 will still be covered by a safety net. They will receive basic living support, employment support and a public medical fee waiver under the CSSA scheme.

Law said the new employment support supplement scheme is not a transitional measure.

Lawmaker and member of Business and Professionals Alliance for Hong Kong Priscilla Leung Mei-fun said the new plan was acceptable.

Leung said having no transitional period for the Employment Support Supplement was “down to the earth”, adding that the new scheme will still benefit people in society.

Leung Che-cheung, a lawmaker and member of the Democratic Alliance for the Betterment and Progress of Hong Kong — the largest political party in the Legislative Council — said the government should clarify the new policy to legislators.

Hong Kong is now facing a serious aging population problem and other challenges relating to the elderly. According to the Census and Statistics Department, the proportion of elderly people aged 65 and over is projected to increase from 17 percent in 2016 to 31 percent in 2036 and to rise further to 37 percent in 2066.