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Colleen Lee

Martin Wong

Old age allowance may rise to HK$1,000 to help target most needy in ageing population
The government has hinted it will raise the old age allowance to HK$1,000 a month but it  likely to introduce a means test.
The idea drew  criticism from the elderly, concern groups for the underprivileged and the lawmaker for the social welfare sector.
People aged 70 and above can now get a Higher Old Age Allowance of HK$705 a month without a means test. Those aged 65 to 69 whose assets and income do not exceed stipulated limits can get a Normal Old Age Allowance of HK$625 a month.
A single person's assets are capped at HK$169,000 and his income at HK$5,910 a month. For a married couple, their assets cannot exceed HK$254,000 and their income should not exceed HK$9,740.
Chief Executive Donald Tsang Yam-kuen  said: '[There] have been calls for the government to increase the OAA rate to HK$1,000 ... In recognition of views expressed by different sectors and political parties over the past year, we concur that the proposed level of HK$1,000 for the OAA is reasonable.'
But he said the government had to consider introducing a means test.
'Given a rapidly ageing population and our limited financial  resources, we should direct resources to the elderly in genuine need to  ensure the sustainable development of our existing non-contributory social security and welfare system, which is based on a simple tax regime.'
Secretary for Labour and Welfare Matthew Cheung Kin-chung  said the proposed means test mechanism would only affect  new applicants. The level of the proposed means test had not yet been decided and the Labour and Welfare Bureau would complete a review of the allowance by  end of the year, he said.
Mr Cheung said about 470,000 people currently received the allowance, also known as fruit money, costing the government HK$3.8 billion in 2007-08. He said that in 2033, if the allowance rates remained unchanged and more people received it due to the ageing population, it would cost the government HK$9.7 billion a year.
Mr Cheung did not say how many people were expected to be entitled to the old age allowance by then, and a spokeswoman for the Labour and Welfare Bureau said such a figure was unavailable.
If both the normal and higher old age allowance rates increased to HK$1,000 a month, the government expenditure  would be HK$14 billion a year, assuming more people  received the allowance, he said.
Lawmaker Peter Cheung Kwok-che, who represents the social welfare sector, said he opposed the introduction of a means test, saying it was like treating the elderly as beggars.
'I am outraged. The government completely distorts the meaning of the old age allowance. It is for paying respect to the elderly who contributed to our society in their years of work,' he said.
A spokesman for the  Council of Social Service said: 'If the government views fruit money as a reward for the elderly, then no means tests should be enforced even if the rate is increased to HK$1,000 a month.'
The council urged the government to retain the allowance as a reward for the contributions to society made by elderly people.
Iman Fok Tin-man of the Society for Community Organisation said: 'Many deprived elderly people will be unable to get the allowance.'



Means test turns elderly into beggars, say critics