Opinion | Means-testing stance shows officials want to curb welfare in Hong Kong

Chief Executive Leung Chun-ying has failed to deliver what he promised during his election campaign. He has implemented no effective policy since taking office more than 100 days ago.

On July 16, he announced what he called a "favourable" policy that would benefit the grass roots, especially the elderly - a revamp of the so-called "fruit money" or old-age allowance for those aged 65 and above. Under the new plan, elderly people can choose to apply for a higher allowance - from the current HK$1,090 to HK$2,200 - subject to financial vetting.

Currently, those aged between 65 and 69 are subject to a means test while those aged 70 and above are spared. That's why both the Federation of Trade Unions and the pan-democrats have suggested that the vetting be scrapped to bring the two in line. The objective is to provide basic protection to the elderly, especially to soften the inflationary impact they face and to make up for the inadequacy of the Mandatory Provident Fund.

However, even before the allowance proposal was tabled for discussion in the Legislative Council, the government has taken a firm stance on not waiving the means test. Both Chief Secretary Carrie Lam Cheng Yuet-ngor and Secretary for Labour and Welfare Matthew Cheung Kin-chung previously said the government wanted those aged 70 and above, who were not vetted now, to be screened under the new plan.

Without a means test for those aged 65 and above, the government will have to pay an extra HK$13.6billion to finance the old-age living allowance. With means testing, it said, the cost would come down to HK$6.2billion.

It also argues that with Hong Kong's rapidly ageing population, the financial burden on the government would increase substantially over time. Therefore, it said, a proper framework needs to be put in place to ensure that available resources are properly utilised.