Policy Address

55.         The annual expenditure involved is estimated to be around $3 billion.  More than 200 000 low-income families with 710 000 members, including 180 000 eligible children and young people, will benefit from the allowance.  To help prevent poverty, low-income families with a monthly income slightly higher than 50% of the median domestic household income may also receive a half-rate allowance.

56.         This recurrent measure will involve a substantial amount of public funds and provide an extensive coverage.  Although the Government has set the policy direction, careful deliberation is still required to work out the operational details.  In rendering assistance to low-income working families and encouraging continued employment, we must refrain from distorting the labour market or undermining the incentive to work.  We must take into account the long-term financial commitment of the Government while focusing on helping the most needy groups.  We will listen to the views of the public on the proposed allowance over the next few months.  We will then seek funding approval from this Council to implement the scheme in 2015.

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