'I don't mind sleeping on the street, but what about my children?'

Single mother Wong King-sheung, 41, says she will have to pare back her expenses even more after her welfare cheque is cut by 11.1 per cent.

Ms Wong has been living on welfare for more than 18 months with her son, 17, and daughter, 13, in a public housing estate in Yau Tong.

Although admitting she felt desperate, she laughed off her problems when hearing about the welfare cut yesterday.

'What can I do? The government has decided it anyway,' she said. But she immediately started to work out how much less she would receive.

'I am getting $8,482 a month from the government. It covers everything for three people, from the $2,180 rent to my $400 MTR costs. If there was less money, I'd be in trouble, to be honest with you. I could eat less. I don't mind sleeping on the street. But how about my children?'

Ms Wong says she could accept a cut of about $500, but a reduction of 11.1 per cent means the family will have to live on $7,400, about $900 less than they get now.

'Why did the government cut our welfare in one go while civil servant salaries are cut in two phases? Civil servants have jobs but I don't,' she said.

'I will save a penny here and there, such as skipping lunch. Eating out is undreamed of. We can't afford to spend more than $60 on food a day for three people.'

Ms Wong says it is difficult to find work when she has to take care of her children.

'I can't write and I can't read. What can I do?

'Last month I overspent and used up the money a few days before the following pay day. I had to make money by scavenging. Although I only made about $30 a day, it helped us out. But it's not a long-term solution.'

She has to borrow from friends when she falls ill or the children need money for school activities.

'I borrowed $3,000 from a friend last year when I moved here. I needed to buy beds. I haven't re-paid a cent to her yet. I have no savings. I should thank God if I don't overspend. Where is the extra money coming from?'