Press Releases

Second phase adjustment of CSSA

        Regarding the recent debate on the second phase adjustment of Comprehensive Social Security Assistance (CSSA) rates, a spokesman for the Health, Welfare and Food Bureau said today (September 23) the Government has decided to continue with the implementation after carefully listened to and considered the different views of the public and various sectors of the community.

        The current adjustment reflected the levels of deflation recorded during the period between 1999 and 2002 and it was decided after careful consideration of various factors to ensure that the social security system would continue to function as a reliable safety net, the spokesman said.

        The deflationary adjustment was approved in February 2003 by the Executive Council and subsequently by the Legislative Council through the enactment of the Appropriation Bill which included provision for CSSA in accordance with the adjusted rates.

        The spokesman said the Government understood the concerns of the community towards the elderly and non able-bodied recipients.

        "The CSSA scheme is to provide a safety net of last resort for those in need so that they could meet their basic and essential needs. The rates are adjusted according to the movement of the Social Security Assistance Index of Prices (SSAIP) to retain the original purchasing power.

        "The current adjustment is to maintain the objective of providing a primary safety net for the recipients, while implementing the adjustment of the non able-bodied recipients in two phases aims to allow a longer cushioning period for them to adjust their spending. This is in response to the call of the community to be compassionate to the non able-bodied recipients," he said.

        The spokesman stressed that recipients having difficulties and special needs could approach social workers for assistance.

        "As the economy has started to show signs of recovery, we would closely monitor the movement of the SSAIP. If inflation has offset recipients' purchasing power, we would adjust the rates upward according to the established mechanism," he said.

        Apart from the CSSA standard rates, recipients are eligible for a wide range of special grants to meet the special needs of the individual or family, including rent allowance, water charge allowance, medically-recommended diet, cost of medical and rehabilitation appliances, emergency alarm system for elderly persons, and transportation to and from hospital/clinic. For non able-bodied recipients who have been receiving assistance for 12 months or more, they are entitled to a long-term supplement. The Director of Social Welfare could provide other forms of assistance according to individual needs.

        At the same time, elderly and non able-bodied recipients are entitled to free medical services. Elders joining the activities of elderly centres can also have their fees waived if needed.

        The spokesman said: "The CSSA scheme aims to provide a safety net in the form of income maintenance to those who are not financially self-sufficient. The Government is committed to providing financial assistance to those individuals and families in need to meet their basic needs."

        Total expenditure on CSSA continues to rise in the past few years. In 2004-05, approved CSSA provision is $17.9 billion, which is a 5.2 per cent increase on the approved provision of $17 billion in 2003-04. Of the $33.7 billion allocated for welfare spending in 2004-05, CSSA already takes up 53 per cent (or 8.8 per cent of the total recurrent Government expenditure) in 2004-05.

        In 2003-04, the Government has provided a total of $5.8 billion to assist over 199,000 disabled persons through CSSA and Disability Allowance, an increase of 45 per cent over the $4 billion expended in 1997-98.

Ends/Thursday, September 23, 2004

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Annex:

Government assistance to non able-bodied

(the elderly, the disabled and those medically certified to be in ill health)

 

Caring for the elders

l         In the past seven years, the Government has strived to improve the quality of life for the elderly under the policy objective of caring for the elders. The Government has also invested a lot of resources to provide the elders with "a sense of security, a sense of belonging and a feeling of health and worthiness".

 

Financial assistance

l         About $11.7 billion financial assistance has been provided to over 630,000 elders under Comprehensive Social Security Assistance (CSSA) and Old Age Allowance (OAA) in 2003/04, an increase of 49 per cent when compared to $7.8 billion in 1997/98. In 1998, the Government raised the standard rate for elderly CSSA recipients by $380.

l         After the second phase adjustment of CSSA rates, a single elderly CSSA recipient may receive average monthly payment of $3,640 while a two-member household with elderly may receive $5,840. The payments cover the standard rate for the individual elder, rent allowance, and special grants.

l         Apart from the standard rate and long-term supplement, special grants payable to those who are old, disabled or medically certified to be in ill-health:

• Housing and related grants: rent allowance, water/sewage charge allowance, grant to recover monthly telephone charges, grant for emergency alarm system for elderly recipients, etc.
• Family grants: grant to cover fares to and from hospital/clinic, burial grant, etc.
• Medical and rehabilitation grants: special diet allowance, grant to recover costs of medical, rehabilitation, surgical appliances and hygienic items, grant to recover costs of glasses, dental treatment, charge for respite service and fees for home help service, etc.
• Child-care grants and school grants for selected items of school-related expenses, etc.

 

The allowance will be granted in the form of flat rate, on reimbursement basis and in accordance with the recipients' actual needs.

 

Services

l          The spending on elderly services for this year is $3.4 billion, which almost double the $1.7 billion spending in 1997/98. The amount is used to provide a series of elderly homes, home and community care and support services. At present, about 22,000 elders are receiving home and community care services.

l          Over half of the elders (59 per cent) are living in subsidised public housing. The number of elders on the General Waiting List drops drastically from 16,000 households in 1997 to 4,800 households.

l          We provide over 26,900 subsidised places for homes for the aged, an increase of 59 per cent when compared to 1997/98.

l          To concentrate resources to develop long-term care services, we will assist homes for the aged and self-care hostels to take care of the frail elders.

l          Elderly CSSA recipients are entitled to free medical services at public hospitals/clinics. The Department of Health has set up elderly health centres and visiting health teams throughout the 18 districts in Hong Kong to provide disease prevention and health promotion services to the elderly.

 

Care for the disabled

l          In 2003/04, the Government has provided some $5.8 billion financial assistance to over 199,000 disabled through CSSA and Disability Allowance, an increase of 45 per cent when compared to $4 billion in 1997/98.

 

 

Health, Welfare and Food Bureau

September 23, 2004