Scheme to help CSSA recipients become self-reliant

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The Government has announced a package of proposals to assist able-bodied Comprehensive Social Security Assistance (CSSA) recipients to rejoin the workforce and to ensure that welfare resources are directed to help the truly needy and disadvantaged members of the community.

The proposals are contained in a consultation document, the Report on Review of the CSSA Scheme, published by an inter-departmental Steering Group under the chairmanship of the Director of Social Welfare.

Speaking at a press conference today (Wednesday), the Secretary for Health and Welfare, Mrs Katherine Fok, said CSSA expenditure was expected to rise five times in five years - from $2.4 billion in 1993/94 to $13 billion this year.

"We are concerned that unchecked growth in CSSA expenditure would become a heavy fiscal burden to Hong Kong and affect our long term ability to finance other essential social services such as education, health and welfare services," Mrs Fok said.

The Steering Group has therefore recommended the Social Welfare Department (SWD) to launch a "Support for Self-Reliance" Scheme to encourage able-bodied CSSA recipients to re-enter the labour market and help them overcome barriers to employment.

The main elements of the scheme are :

* to provide an active employment assistance programme in conjunction with the Labour Department and the Employees Retraining Board through a coordinated programme of counselling, employment and retraining services, including the drawing up of a personalised action plan to find work;

* to render additional help to unemployed recipients by requiring them to undertake community work as a condition of receiving CSSA; this will also give them an opportunity to contribute to society while preparing them for eventual gainful employment; and

* to give unemployed recipients a greater incentive to work by disregarding their first month's income from a newly secured full-time job.

Mrs Fok said that, in the long term interest of the unemployed CSSA recipients, these measures should prevent them from giving up job search and resigning to relying on CSSA, adding that an energetic and flexible labour force was key to maintaining Hong Kong's competitiveness.

As regards CSSA single parents, the Government proposes that when their children reach 12 and are attending full day secondary schools, they should be encouraged and assisted to rejoin the labour force.

"Their children can attend extra-curricular activities organised by the schools and take advantage of facilities in Children and Youth Centres if they do not wish to go home immediately after school for want of adult to look after them at home," the Secretary said.

Noting that there has been increasing public concern about the high levels of CSSA payment, Mrs Fok said a three-person CSSA household currently receives about $9,000 a month and a four-person household receives more than $10,000 a month. In comparison, the wages of many low-skilled jobs only range from $5,000 to $9,000 a month.

"Having regard to the consumption behaviour of larger households, we have proposed to adjust downwards the standard rate payment to CSSA households of three able-bodied members by 10 per cent and that to households of four able-bodied members or more by 20 per cent. The rates for other households would not be affected," Mrs Fok said.

"We will ensure that only special grants that are absolutely essential, i.e. rent, water charge, school related expenses and child care centre fees, will in future be payable to able-bodied recipients," she added.

However, Mrs Fok stressed, the standard rate payment and special grants payable to the elderly, the sick and people with disabilities would not be affected.

As CSSA is meant to help financially vulnerable members of the community meet their essential needs, the Government has also proposed a different scale of asset limits for cases involving any able-bodied adult as follows :

* for family cases, the asset limit for each able-bodied adult/child will be $16,000, up to a maximum of four members;

* for single-person cases where the applicant is an able-bodied adult, the asset limit will be $24,000; and

* for cases involving any employable adult aged below 50 and where there is no family member who is old, disabled or medically certified to be in ill-health, the value of an owner-occupied residential property will be taken into account for the asset test, but a grace period of 12 months will be allowed for the applicant to make alternative arrangements.

The Government will conduct a six-week public consultation, including the Social Welfare Advisory Committee, Legislative Council Panel on Welfare Services, Provisional District Board members, the welfare sector, academics and interested parties.

"We will take into consideration carefully all the views received during the consultation period before finalising a package of recommendations early next year. It is hoped the new measures will be implemented in 1999/2000," Mrs Fok said.

Copies of the Review and an executive summary are available at all Social Security Field Units of the Social Welfare Department and District Offices of the Home Affairs Department. They can also be downloaded from the Internet home page of the Social Welfare Department ( http://www.info.gov.hk/swd/).

Comments on the proposals should be sent to the Social Welfare Department at Wu Chung House, eighth floor, 213 Queen's Road East, Hong Kong on or before January 20, 1999. They can also be sent to the department by fax (2833 5821) or E-mail (socsecu2@swd.gcn.gov.hk).

Meanwhile, the Social Welfare Department has set up two hotlines - 2832 4020 and 2832 4021 - to handle public enquiries about the proposals.

End/Wednesday, December 9, 1998

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