Carrie Lam policy address: cash subsidy boost for elderly, HK$32.9 billion to close pension system loophole among social safety net measures

Those under Old Age Living Allowance scheme will receive HK$3,815 per month from second half of 2022, with the current two payments combined into one subsidy

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About 50,000 elderly residents under the Old Age Living Allowance scheme stand to benefit from a higher cash subsidy, according to measures outlined in Chief Executive Carrie Lam’s policy address on Wednesday. Photo: Felix Wong

Published: 9:55pm, 6 Oct 2021Updated: 1:58am, 7 Oct 2021

About 50,000 elderly residents stand to benefit from a higher welfare cash subsidy set to cost the Hong Kong government HK$800 million (US$102.7 million), with another HK$32.9 billion (US$4.2 billion) earmarked to close a loophole in the pension system, the city’s leader has pledged.

The measures were outlined in Chief Executive Carrie Lam Cheng Yuet-ngor’s final policy address of her current term on Wednesday, as she sought to provide a social safety net for those in need through income redistribution.

Xia Baolong, director of the State Council’s Hong Kong and Macau Affairs Office, had set a goal in July for the city’s next leader to tackle deep-rooted issues such as wealth inequality and the housing crisis.

Hong Kong’s next leader has been tasked to tackle deep-rooted issues such as wealth inequality. Photo: Dickson Lee

As outlined in Lam’s policy address, elderly residents currently missing out on a higher subsidy rate under the Old Age Living Allowance scheme will get a HK$970 boost every month starting from the second half of next year.

Lam said two old-age allowance payments would be combined into one subsidy, with applicants assessed under more lenient eligibility criteria, which meant that all those covered by the scheme would get HK$3,815 per month.