Fix poverty gauge but strengthen Hong Kong safety net
- City may be developing a formula to take in factors in addition to income, the basic marker, however change must not come at the cost of those in need
Poverty amid plenty challenges a society’s conscience. How it is calculated can be a sensitive issue.
Hong Kong’s official poverty rate is income-based. When last updated with data from 2020 it was 23.6 per cent, or 1.65 million people, based on the number living on no more than half the median household income.
With the pandemic emergency behind us, an update of the Hong Kong Poverty Situation Report is overdue. Meanwhile, the government is developing a formula for measuring poverty that takes in relevant factors as well as income.
That is good if it deepens knowledge of the extent and nature of poverty and improves the targeting of relief.
As calculated currently, the poverty line ranged from HK$4,400 (US$562) a month for a single-person household, to HK$9,500 for a two-person household, HK$16,000 for three, and so on. After taking into account government intervention with measures such as Comprehensive Social Security Assistance, one-off cash subsidies and means-tested benefits such as public housing, it was calculated the number living in poverty fell to 554,000, or 7.9 per cent of the population.
08:01
A glimpse inside Hong Kong’s notorious subdivided homes
Income must remain a basic marker for measuring poverty. But there is room for debate whether it should be the sole gauge among interrelated factors such as basic living costs.
Given the diversity of circumstances among targeted groups, one size may not fit all. Secretary for Labour and Welfare Chris Sun Yuk-han believes poverty is multifaceted.
“We must devise targeted solutions for certain groups and just one single indicator may not be suitable,” Sun said.
The government’s Commission on Poverty is reported to have discussed a more realistic approach to identifying needy groups and analysing their income, living conditions and employment, starting with occupants of subdivided homes, single-parent households and the elderly. Hopefully, the outcome will show the way forward.
Hong Kong to replace median household income as sole indicator of poverty
Under the present system, the income-based numbers tend to be alarming and put pressure on the government. More informed and effective targeting of aspects of poverty may be welcome.
But it must not be at the cost of a broader focus on those in need of help. Cosmetic changes will not deliver effective reform. There is a need to identify target groups and to be able to help genuine cases.
