Financial Secretary John Tsang said at a press briefing yesterday that budgetary measures would help everyone in the society, especially the low-income group.

Some of the measures that help the low-income group include using HK$1.2 billion to give an extra month's payment to recipients of Comprehensive Social Security Assistance (CSSA).

Public housing tenants will enjoy a month's free rent, covered by HK$1 billion government subsidy.

An old woman sells second-hand goods on street. Vulnerable social groups, such as the poor and the elderly, were given special attention in the budget. CNS

The government will relax the Transport Support Scheme by raising the monthly income cap for applicants from HK$5,600 to HK$6,500.

The scheme was introduced last June to help the low-income group living in remote areas to work in different districts.

The budget proposed subsidizing each residential electricity account with HK$6,000, which will cost HK$4.3 billion.

The government will also use HK$8.5 billion to give those earning less than HK$10,000 a month a one-off grant of HK$6,000. The grant will be put in their Mandatory Provident Fund (MPF) accounts.

Persons whose monthly salaries are or below HK$10,000 in any month between Dec 2007 and Feb 2008 will be eligible under the proposal, a government source said.

Changing the MPF law is required to make the SAR government a third party in MPF contributions other than the employer and employee, the source added.

On measures to help the elderly, the government will give a one-off grant of HK$3,000 to each recipient of old age allowance, which will cost the government HK$1.5 billion.

A government source said the authorities will make a decision by the end of this year as to whether the allowance should be intended as a gesture of respect for the old people in general or as a means to help the elderly in need.

The government will also provide HK$1 billion in the next five years to support the elderly in home improvement works, with a cap of HK$40,000 each.

Tsang said that adding one-off poverty relief measures when the economy is robust could ease people's problems.

Adjusting old age allowance is a big policy change, he added. He said Secretary for Labour & Welfare Matthew Cheung would start a consultation on the issue tomorrow.

"The government will save money for the new old age allowance policy, which can be implemented if the result of the consultation is ready by the end of this year," he said.

Reacting to the budgetary proposals, academics said the measures supporting the poor and the elderly could ease their immediate financial burden.

Hailing the government's proposal of granting HK$3,000 for the elderly, Raymond Chan, associate head of the Department of Applied Social Sciences from City University said the measures were meant for people who needed them the most.

He also agreed with the government that society needed time to discuss old age allowance because increasing the allowance would mean a big change to the retirement scheme of the society.

Baptist University's assistant professor of the Department of Social Work Sam Yu suggested setting an age limit to the recipient of the one-off HK$6,000 MPF grant.

He also said the government could consider giving a MPF contribution subsidy so that less people would need CSSA in future.

Baptist University's assistant professor of the Department of Economics Mo Pak-hung said the budget has focused on the needs of different groups in society.

Welcoming the poverty relief measures, Chairman of Democratic Alliance for the Betterment & Progress of Hong Kong Tam Yiu-chung said the budget has reflected what the society asked in view of a big surplus.

He hailed the MPF grant to low-income people and the electricity subsidy.

The Liberal Party welcomed the proposal of the one-off payment of HK$3,000 for the elderly.

(HK Edition 02/28/2008 page1)