Tackling the deep-rooted social conflicts
3 November 2019
Nothing about people's livelihood is trival. Improving people's livelihood has always been one of the priority policy areas of the Government. Fully aware of the deep-rooted social conflicts over housing, income disparity and youth upward mobility in Hong Kong, the Government has put forward in this year's Policy Address various new initiatives based on the principles of pro-family, pro-work, pro-child and pro-health to further improve people's livelihood.
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In 2019-20, the Government's estimated recurrent expenditure on social welfare, education and healthcare amounted to over $250 billion, accounting for 58% of the total recurrent expenditure. Recurrent spending on social welfare alone is estimated to be $84.3 billion, up by a significant 97% on 2012-13. These figures illustrate the Government's determination to continue allocating substantial resources to improve people's livelihood.
The Government's support for the disadvantaged entails the deployment of public resources. To cope with an accelerated ageing population, the Government's recurrent expenditure on the Comprehensive Social Security Assistance (CSSA) Scheme and the Social Security Allowance Scheme (including Old Age Living Allowance, Old Age Allowance and Disability Allowance) has increased by 108% over the last decade, from $25.8 billion in 2010-11 to an estimated $53.6 billion in 2019-20.
Cash assistance aside, the Government also recognises the importance of service-based support in improving the living standards of grassroots citizens. The Policy Address has taken heed of the views of various sectors and strata of society and proposed a host of new initiatives to provide the disadvantaged with more comprehensive and targeted support that will better meet their needs. I will outline some of the initiatives below.
Expanding transitional housing
- One of the new decisive measures taken to deal with the housing problem is to increase the number of transitional housing units substantially. The Government has set aside $5 billion to provide a total of 10 000 units within the next three years to relieve the pressure of families living in unpleasant conditions and those awaiting Public Rental Housing (PRH) for a long time.
Encouraging employment and supporting families
- To alleviate the financial burden of self-reliant grassroots working families, the Government will raise all payment rates of the Working Family Allowance (WFA). There will be a 16.7% to 25% increase in the working-hour linked household allowance, while the Child Allowance will be raised substantially by 40%. Taking a four-person household with two eligible children as an example, the maximum level of allowance will increase by 30% from the existing $3,200 per month to $4,200 per month. It is estimated that an additional annual expenditure of about $460 million will be incurred. As at the end of September this year, the number of beneficiaries stood at about 46 000 households.
- The CSSA Scheme will be improved by raising the maximum amount of disregarded earnings by 60% from $2,500 to $4,000 per month, enhancing the employment support services, extending a range of supplement and special grants to eligible non-elderly able-bodied recipients, and increasing the maximum rates of rent allowance from about 3% to 27% with reference to the number of members in the household. It is estimated that an additional annual expenditure of about $960 million will be incurred.
Strengthening elderly community services
- Provide an additional service quota of 3 000 under the Integrated Home Care Services (Frail Cases); and provide an additional 1 000 service vouchers, bringing the total to 8 000, under the Pilot Scheme on Community Care Service Voucher for the Elderly.
Care for children
- Enhance the After School Care Programme by providing an additional 2 500 full fee-waiving places, relaxing application eligibility, increasing the subsidy level, providing extra subsidy for students with special educational needs, and streamlining the financial vetting process. More than 5 700 students and their families will benefit from these measures.
- From the 2020/21 school year onwards, regularise the provision of a student grant of $2,500 per year for each secondary day school, primary school and kindergarten student in Hong Kong. It is estimated that about 900 000 students will benefit from this measure.
Rehabilitation services for the disadvantaged
- The Government will provide an additional 1 000 service places under on-site pre-school rehabilitation services in each school year from 2020/21 to 2022/23, bringing the total to 10 000, with a view to gradually achieving the objective of "zero-waiting time". From 2019-20 to 2021-22, some 1 200 additional service places will be provided in Special Child Care Centres and Early Education and Training Centres, bringing the total to 6 700, while some 3 800 additional service places will be provided in day rehabilitation service units and residential rehabilitation service units.
- Set up two new rehabilitation service centres to implement a pilot project on community care services; and provide 20 additional Rehabuses.
Care for the grassroots
- The Community Care Fund will launch another round of "one-off living subsidy" for low-income households not living in PRH and not receiving CSSA (i.e. "N have-nots") in the next financial year, in addition to the round which was announced earlier as part of the relief measures (the 2020 Programme). This will allow the Government time to complete a study on regularising the cash subsidy scheme to provide more effective support to the needy by the end of 2020. Incurring an estimated total expenditure of $1,120 million, the 2020 Programme is expected to be launched in July 2020 and benefit about 105 500 households (about 272 000 persons).
Enhancing the Public Transport Fare Subsidy Scheme
- Increase the subsidy rate from one-fourth to one-third of the monthly public transport expenses in excess of $400, as well as raise the subsidy cap from the existing level of $300 to $400 per month. As a result, the annual subsidy provided by the Government will increase from $2.3 billion to about $3.1 billion, benefitting over 2.2 million citizens.
Drawn up in a bottom-up approach with extensive consultation, this year's Policy Address has incorporated many livelihood-improving initiatives that were formulated from the views of different sectors and strata of the community. With pragmatic and decisive policy proposals, the Government is determined to deal with society's longstanding conflicts. The specific measures proposed in the Policy Address have made a promising start in alleviating the housing problem, narrowing wealth disparity as well as promoting upward mobility.
Meanwhile, the Government will invite community leaders, professionals and academics to independently examine and review the deep-seated problems of society and advise on possible solutions. The CE and her team of principal officials will continue to make district visits, reaching out to the community to communicate with members of the public, listen to their voices and feel the pulse of society.
The Government earnestly hopes that society can return to peace. While it is important to address the social conflicts, the most pressing task for us now is to end violence and restore order. Despite the acute situation, the Government has full confidence, determination and capability to weather the storm and mend the rift in society. Every cloud has a silver lining. Let us get out of this impasse hand in hand, with resolve and resilience.
