Press Releases

Review on CSSA and OAA aims to render more effective help to needy elders

The Government is reviewing the existing social security schemes for the elderly in order to provide better assistance to elders in light of changing needs, the Secretary for Health, Welfare and Food, Dr Yeoh Eng-kiong, said today (July 26).

"We have yet to draw up specific proposals to introduce changes to the existing system. There is no plan to abolish the OAA," he said.

Dr Yeoh also assured representatives from 10 elderly concern groups at a meeting this afternoon that existing OAA recipients would not be affected.

Dr Yeoh noted the meeting was a useful and constructive exchange. "We are sensitive to concerns of elders. We welcome their views, which will all be studied carefully in the course of the review. Being an open, caring and responsible government, we shall continue to listen to views from the community in our policy formulating process," he said.

"I understand that there have been speculations that the Government would bring significant changes to the existing social security schemes, which have caused worry and anxiety among the elderly.

"I can assure you that the review is at an initial stage and we are open to all viable options which will better help those in need. If and when there are proposals to introduce major changes to the system, we will consult the public and the Legislative Council first.

In exchanges with representatives at the meeting, Dr Yeoh said that over the past five years, the Government has enhanced the home and community care and support services for elders to meet their preference to age at home. Today, about 29 000 elders have used these services, up by 60 per cent over five years ago. Also, about 26 000 subsidised residential care places to elders who cannot be adequately taken care of at home have been provided, up by 62 per cent over five years ago. Expenditure on elderly services in this financial year amounts to $3.5 billion, more than double the expenditure five years ago.

"The objective of our elderly services and measures is to improve the quality of life of our elders. We had all along been promoting the community's respect and caring for elders and to provide opportunities for the elders to continue to contribute to the society.

"When the OAA was first introduced in 1973, the objective was to help families to look after their older members. In view of the ageing population and the need to address the fiscal challenges, we have to develop a long term sustainable financial support system for needy elders.

"We will take all relevant factors into account in developing any new proposals," Dr Yeoh said.

Speaking after the meeting, Dr Yeoh welcomed the direct dialogue with representatives on a number of issues of common concern including medical services, social and recreational services and other support services for the elders.

As at June 2002, there were about one million persons aged 60 or above in Hong Kong, of whom some 164,200 were CSSA recipients while over 457,000 people received OAA (please refer to background and graphics).

The Government will spend an estimated $11.8 billion to provide financial assistance to elders through CSSA and OAA schemes, which are both non-contributory, representing an increase of 50 per cent when compared to the $7.8 billion payout in 1997/98.

According to the latest population projections, the proportion of the population aged 65 or above will grow from 11.2 per cent in 2001 to 24.3 per cent in 2031, or one in four persons in Hong Kong will then be 65 years of age or older.

Background

Currently, elders in Hong Kong who are in financial need can apply for financial assistance under the Comprehensive Social Security Assistance (CSSA) Scheme.

In addition, the Old Age Allowance (OAA) Scheme, which was first introduced in 1973 to help families to look after their elders, provides a flat-rate monthly allowance to help elders to meet their special needs. The higher OAA, at $705 per month, is non-means tested for elders aged 70 or above. The normal OAA, at $625 per month, is subject to income and asset declaration for elders aged between 65 and 69.

As at the end of June 2002, there were 140,576 old age cases under CSSA, which account for 55 per cent of total CSSA cases. The average payment of a singleton CSSA old age case is about $4,000 per month. On the other hand, there were 457,226 cases under OAA.

Altogether about 600,000 elders aged 60 or above are receiving social security payments under CSSA or OAA. The figure represents 61 per cent of the population aged 60 or above, and 78 per cent of those aged 65 or above.

In this financial year, the Government will be spending an estimated total of $11.8 billion to provide financial assistance to elders through the CSSA and OAA schemes, representing an increase of 50 per cent compared with $7.8 billion in 1997/98.

According to the latest population projections, the proportion of the population aged 65 or above will grow from 11.2 per cent in 2001 to 24.3 per cent in 2031. In other words, one in every four persons in Hong Kong will be 65 years of age or older by the year 2031. The number of older population will increase to over two million, more than double the current 780,000.

End/Friday, July 26, 2002