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LCQ3: Asset limits for the Comprehensive Social Security Assistance Scheme
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     Following is a question by Hon Cheung Kwok-che and a reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, in the Legislative Council today (December 2):

Question:

     The Government has implemented one-off relief measures for several times in recent years, disbursing one-off extra payments to recipients of Comprehensive Social Security Assistance (CSSA). It has been reported that an elderly singleton saved the monies received under the aforesaid relief measures (relief monies) for possible future needs, thus causing his assets to exceed the asset limit under the CSSA Scheme. Upon discovering this situation, staff of the Social Welfare Department (SWD) suspended his CSSA payments and even considered requiring him to return the overpaid CSSA payments during the period when his assets exceeded the asset limit. In reply to media enquiries, SWD indicated that the relief monies granted to CSSA recipients would be exempted from being counted as their assets for one year, but the same would be regarded as part of their assets thereafter. In this connection, will the Government inform this Council:

(1) whether it has compiled statistics on the number of cases since 2011 in which CSSA recipients' assets exceeded the asset limits under the CSSA Scheme as a result of their saving the relief monies; if it has, of the number; among these cases, of the number of cases in which CSSA payments were stopped, and the percentage of the number in the total number of cases in the same period in which CSSA payments were stopped;

(2) whether it will consider making special arrangements for the elderly person mentioned in the aforesaid report as well as other elderly persons whose CSSA payments were stopped for the same reason, to resume disbursement of CSSA payments to them; if it will not, of the reasons for that; and

(3) given that the grant of the relief monies by the Government is meant to alleviate the hardship of CSSA recipients, but this has resulted in the thriftier recipients being penalised by stoppage of CSSA payments, whether the Government will consider extending the exemption period for counting relief monies as assets of CSSA recipients, or even granting a permanent exemption; if it will, of the details; if not, the reasons for that; whether the Government has plans to raise the relevant asset limits to avoid the occurrence of similar situations?

Reply:

President,

     The Comprehensive Social Security Assistance (CSSA) Scheme provides a safety net to meet the basic needs of households which cannot support themselves financially owing to old age, disability, unemployment and low income, etc. As at end-October 2015, there were 246 092 CSSA cases, which involved 367 108 recipients. The caseload has dropped for 55 consecutive months. Amongst around 240 000 cases, there were around 150 000 old age cases, accounting for about 60 per cent of the total. The CSSA Scheme caters for the special needs of elderly persons aged 60 or above with a more relaxed level of asset limit, higher standard rates, special grants and supplements. From February 1, 2015 onwards, the asset limit for singleton elderly CSSA recipients and applicants is $43,500.

     As for elderly persons aged 65 or above who are in need of financial support but not eligible for the CSSA, they may apply for the Old Age Living Allowance (OALA) to supplement their living expenses. From February 1, 2015 onwards, the monthly payment rate of the allowance is $2,390. The asset limits for single persons and married couples are $210,000 and $318,000 respectively.

     Under the CSSA Scheme and OALA, owner-occupied residential properties of elderly persons are not counted towards the asset limits. The limits are adjusted annually according to the established mechanism. For example, the asset limits under the CSSA Scheme were increased by 4.7 per cent on February 1, 2015 according to the mechanism.

     In the Budgets of recent years, having considered the relevant economic environment, Government's fiscal position, burdens on the citizens, etc., the Financial Secretary increased public expenditure in a prudent manner according to the principle of committing resources where justified and needed, and provided one-off extra payments to social security recipients with the approval of the Finance Committee of the Legislative Council. According to the existing arrangement, when calculating the assets of recipients and applicants under the CSSA and OALA, one-off payments provided by Government, including one-off extra social security payments and payment under "Scheme $6,000", etc., are excluded for 12 months from the date of receipt of the payment by the applicants and recipients. Thereafter, the unspent amount will be treated as assets.

     My reply to the Hon Cheung Kwok-che's question is set out below.

(1) The Social Welfare Department (SWD) does not keep record on the number of cases in which CSSA payments were stopped.

(2) Generally speaking, if the payments for CSSA recipients are stopped owing to their total asset value exceeded the corresponding limits under the CSSA Scheme, SWD will follow up on the financial status of the recipients to ascertain whether they have other welfare needs, and render support as appropriate. For example, eligible elderly persons may be provided with the OALA. If the elderly persons concerned fulfil the asset limit and other eligibility criteria for the CSSA Scheme again in future, they may re-apply for the CSSA.

(3) To support the citizens in need and ensure the sustainability of the social security system, a means test is required for the CSSA Scheme. The total asset value of an applicant and his/her family members cannot exceed the prescribed limit. The existing arrangement already provides a grace period of 12 months for one-off payments provided by Government, including one-off extra social security payments and payment under "Scheme $6,000", etc. Thereafter, the unspent amount will be treated as assets. This arrangement on one hand provides a certain level of flexibility for CSSA recipients and applicants and, on the other hand, ensures the effective use of public resources.

     SWD will continue to make timely adjustments to the asset limits for the CSSA Scheme and OALA according to the established mechanism.

Ends/Wednesday, December 2, 2015
Issued at HKT 13:36

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