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LCQ7: Households on CSSA
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     Following is a written reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, to a question by the Dr Hon David Li on households on CSSA in the Legislative Council today (November 12):

Question :

     The Chief Executive reiterated in his 2008-2009 Policy Address that legislation would be introduced to implement a statutory minimum wage system.  In its study report published in 2005, a political party proposed that the statutory minimum wage system should have the effect of encouraging Comprehensive Social Security Assistance ("CSSA") recipients to return to the labour force and, therefore, the minimum wage should be set at a level such that the total work income of a household would be higher than the amount of CSSA payments the household would receive if all its members did not work.  In this connection, will the Government inform this Council of the following, broken down by household size:

(a) the number of households which currently rely solely on CSSA for subsistence, and the median monthly CSSA payments these households receive; and

(b) the number of households, other than those in (a), which have a monthly household income less than the median monthly CSSA payments currently received by CSSA households of the same size, and the median monthly income of the former?

Reply :

President,

     The Comprehensive Social Security Assistance (CSSA) Scheme is designed to provide assistance to individuals who suffer financial hardship because of old age, disability, illness, unemployment, low earnings or other reasons to meet their basic needs by bringing their income up to a prescribed level.  Most CSSA cases are classified under categories such as old age, permanent disability, ill health and single parent.  As at September 2008, these cases took up 83% of the total CSSA caseload.  The CSSA Scheme also takes care of the special needs of recipients of these categories through the provision of higher standard rates, various supplements and special grants.  For example, the average monthly CSSA payment for a singleton elderly recipient is $3,875.

     The Social Welfare Department (SWD) has been assisting able-bodied unemployed CSSA recipients to secure full-time paid employment.  Under the CSSA Scheme, SWD has been implementing the Support for Self-reliance (SFS) Scheme to provide able-bodied CSSA recipients with employment assistance services, so as to motivate them to move from "welfare to self-reliance" as early as possible.  These services include job matching, post-placement support, and arranging community work which helps develop work habit and enhance self-esteem.  Since its implementation in 1999 and up to August 2008, a total of 29,394 CSSA recipients participating in the SFS Scheme have successfully left the CSSA net after securing full-time paid employment.

     My replies to the specific questions raised are set out below :

(a) Under the CSSA Scheme, the SWD usually works out the figures concerned based on the average CSSA payments, which include "standard rates", "supplements" and "special grants".  Regarding "standard rates", the current monthly standard rates for a single able-bodied adult, a 2-member CSSA household comprising two able-bodied adults and a 4-member CSSA household comprising two able-bodied adults and two able-bodied children are $1,750, $3,110 and $5,290 respectively.  Besides, the level of "supplements" and "special grants" are determined by the actual circumstances and needs of respective individuals or families.

     As at the end of September 2008, there are a total of 213,316 CSSA households that do not have income other than CSSA payments.  The number of CSSA households that do not have income other than CSSA payments and their average monthly CSSA payments (including standard rates, various supplements and special grants), broken down by household size, are tabulated below :

                              Estimate on average
Number                      monthly CSSA payments*
of                         with an increase of 4.4%
eligible     Number of     in standard payment rate
member(s)   houselholds    with effect from 1.8.2008
---------   -----------    -------------------------
1            139,023^               $3,706
2             44,449^               $6,065
3             17,379                $8,048
4             8,515                 $9,480
5             2,910                $11,165
6 or above    1,040                $13,900
Total       213,316

Note :* Refer to the situation when CSSA cases do not have income other than CSSA payments.  The estimate is compiled based on CSSA cases during May 2007 ¡V April 2008 and adjusted in accordance with CSSA rates implemented as from 1.8.2008.

^ Refer to CSSA households with 1 or 2 eligible members in which 102,983 and 25,572 old age cases are involved respectively.

(b) Based on the income levels reported by the respondents to the General Household Survey (GHS) conducted by the Census and Statistics Department for the second quarter of 2008, the estimated number of non CSSA households with an average monthly household income less than the average monthly CSSA payments received by CSSA households of the same size is 265,600.  However, GHS is based on information provided by the respondents and some of them may be reluctant to disclose their CSSA status.  Hence, the actual number of non-CSSA households may be lower than the above figure.

     We consider it inappropriate to make a direct comparison between the figures of CSSA households provided by the SWD and the figures of non-CSSA households collected in the GHS, as all CSSA recipients are required to pass the asset tests while the respondents of the GHS are not required to report any information on their assets and hence their financial situation cannot be fully reflected.

Ends/Wednesday, November 12, 2008
Issued at HKT 11:30

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