Press Releases

Adjustment of CSSA will not affect basic living standard

The Government is committed to providing a sustainable safety net to look after those least able to look after themselves, a spokesman for the Health, Welfare and Food Bureau said today (January 27). 

In response to a petition against the adjustment, the spokesman said that the adjustment of Comprehensive Social Security Assistance payment according to deflation currently being considered aimed at restoring the buying power of the recipients to the originally intended level to provide a basic standard of living.

"Despite continuous deflation since 1999, no adjustment has been made to the standard payment," he said.

"The proposed adjustment of 11.1 per cent was made in accordance with the established adjustment mechanism, based on the specially compiled Social Security Assistance Index of Prices (SSAIP).

"Contrary to some remarks made, the design of the SSAIP has taken into account any downward or upward movement of transportation and other utilities fees. If those fees have not been adjusted in the period concerned, the situation will be duly reflected in the index. Therefore, adjustment in accordance with the index will not affect the recipients' basic and essential quality of living," he said.

Pointing out that the Government has not made a final decision on the matter, the spokesman explained," The downward adjustment being considered is intended to better utilise the Government's finite resources to help the needy. Taking into consideration an increase of 8 per cent last year in social security spending, we need to ensure we are able to continue to help an increasing number of people in need."

End/Monday, January 27, 2003
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