Old Age Living Allowance

308 Words2 Pages
In the few months, the old age living allowance is a very hot issue. The government mentioned a means-test scheme is needed for the HKD $2200 old age living allowance, and the government will not raise the asset limit for the beneficiaries. This is a very controversial issue since many stakeholders have different opinions. I’m going to show my stance on this issue. I agree that a means test should be applied to the old age living allowance. Firstly, for the government, without a means-test, resources will be unequally distributed, it will also crowd out other government spending, including on welfare such as Comprehensive Social Security Assistance Scheme, Community Care Fund, Work Intensive Transport Subsidy scheme. This is unfair to the others in the society. The resources can be directly given to those in real financial needs with a means test. For the financially capable elderly, although their asset may not be enough to meet the basic living in long term, it’s more important and emergent to help the elderly who are facing poverty at the moment. They still have HKD $1090 old age allowance. In order to take a balance, a means test is needed. Besides, without a means test, all the elderly in the society can get the old age living allowance, this gives a heavy burden to the government. The government needs a lot of money, then the money will be transferred to the taxpayers. They have to pay more tax to the government, which will seriously affect their economic quality for life. Meanwhile, Hong Kong’s economy will be affected too since people’s purchasing power has decreased. In conclusion, means test should be applied to old age living allowance. In the future, the government should start considering the Universial Pension Scheme which will be a long term assistance scheme to the
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