Policy Address

Old Age Allowance

71.    The OAA Scheme is not intended to meet the basic needs of the elderly.  That is why the OAA rate is lower than that of the CSSA.  As the ageing population grows, and more of the elderly who cannot meet the CSSA income and asset eligibility resort to the OAA as a maintenance subsidy, there have been calls for the Government to increase the OAA rate to $1,000.  We need a comprehensive strategy on the provision of financial support for the elderly.  We should consider the following points:

(1)        In recognition of views expressed by different sectors and political parties over the past year, we concur that the proposed level of $1,000 for the OAA is reasonable.
(2)        Given a rapidly ageing population and our limited financial resources, we should direct resources to the elderly in genuine need to ensure the sustainable development of our existing non-contributory social security and welfare system, which is based on a simple tax regime.  As such, the Government needs to consider introducing a means test mechanism.  The current OAA recipients will not be affected.
(3)        We will proactively explore whether the permissible limit of absence from Hong Kong under the OAA Scheme can be further relaxed.
(4)        For the financially self-sufficient elderly, we also need to show our gratitude by encouraging various sectors and private organisations to offer different forms of concessions to them.

The LWB is working to complete the review on the OAA by year-end.  Over the past six months, the Government has provided altogether more than six additional months of the OAA to the elderly.  This should help alleviate the financial burden for needy elderly people in the short run.

 

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