Press Releases

Modifications to CSSA proposals announced

The Government announced today (Wednesday) the final package of measures to be introduced under the Review of the Comprehensive Social Security Assistance (CSSA) scheme. The final measures, with two modifications to the original package, will be implemented in June this year and will be applicable to all new and existing cases.

The Secretary for Health and Welfare, Mrs Katherine Fok, said the modifications were made after careful consideration of views and comments expressed by different sectors of the community during the six-week public consultation period which ended on 20 January this year.

Taking into account public opinions, she said, the Government has recommended the following modifications :

(a) to drop the proposal to require single parents to seek work when their youngest child reaches the age of 12; and

(b) to continue to pay special grants to able-bodied recipients for burial expenses.

Mrs Fok pointed out that there was considerable public sympathy for single parents who had to bring up young children single-handedly.

"Many people are concerned that if these children are not given adequate parental care and support, there is a risk of their becoming a potential source of other social problems.

"We have therefore decided to continue with the existing policy of requiring single parent CSSA recipients to seek work only when their youngest child reaches 15.

"However, if the single parents are willing to participate in the Active Employment Assistance programme or community work, they are more than welcome to do so. Also, the single parent supplement will continue to be paid to those who are eligible," she said.

Mrs Fok also noted the strong sentiment urging the Government to retain burial grants.

She said that as burial expenses for able-bodied recipients were usually unplanned for and were expensive having regard to the means of CSSA recipients, the Government had recommended its retention.

To encourage and help the unemployed CSSA recipients to rejoin the workforce, the Social Welfare Department, in conjunction with the Labour Department and the Employees Retraining Board, will step up efforts to provide help to this group of recipients. The Government will disregard their first month's income from a newly secured full-time job as an additional incentive for them to seek work.

The Government will also render additional help to unemployed recipients by arranging for them to take part in community work. This will help them to retain their work habit and extend their social network while preparing them for eventual gainful employment.

The community work programme will be implemented in phases. "Arrangements will be made for about 2,000 single unemployed CSSA recipients to participate in community work in the first phase," Mrs Fok said, adding that the Government would monitor closely the administrative costs to ensure cost-effectiveness of the programme.

Other proposals in the original package will remain unchanged. They include :

* the standard rate payment and special grants payable to the elderly, the sick and people with disabilities will not be affected;

* the standard rate payment to CSSA households of three able-bodied members will be adjusted downwards by 10 per cent and that to households of four able-bodied members or more by 20 per cent;

* special grants that are absolutely essential, i.e. rent, water charge, school related expenses and child care centre fees, will continue to be payable to able-bodied recipients;

* the asset limit for each able-bodied adult/child will be $16,000, up to a maximum of four members; while that for single-person applicant will be $24,000;

* 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; and

* the Social Welfare Department will create over 200 posts to cope with the increase in CSSA applications, provide additional assistance to CSSA recipients and step up fraud prevention and investigation.

"The CSSA scheme will continue to provide a safety net for the people with genuine needs," said Mrs Fok.

"Despite the introduction of these changes which have been taken into account in estimating the financial provision required for CSSA in the 1999/2000 Draft Estimates that the Government will publish on Friday (February 26), we expect and have provided for a significant increase in CSSA spending in the coming year," she added.

END/Wednesday, February 24, 1999

NNNN