New Cash Handout To Benefit 2.8 Million People

The government will give cash handouts of up to HK$4,000 to around 2.8 million Hong Kong residents, even though it will take months before anyone will actually get any money due to the logistical challenges of the initiative.

Only people who are aged 18 or above who were completely left out of the Financial Secretary Paul Chan's HK$52.4 billion relief package will be eligible to receive the full HK$4,000 payment.

However, even those who will benefit from the tax deductions, rates waivers, and extra welfare, old age and disability payments can apply for top-up payments if they were promised less than HK$4,000 in the budget, meaning all Hong Kong permanent residents are guaranteed a total package of at least HK$4,000.

Chan said the 'New Sharing and Caring Scheme' will cost the government around HK$11 billion, and the payments will be made via the Working Family Allowance Office.

He acknowledged the widespread public calls for such a handout, saying "the views from the community was loud and clear. And I think as government officials, we need to have the capacity to step back and reflect the various views expressed and see how we may be able to better serve our people", he said. "So this scheme... in our view, is an effort to try to respond to the needs of the community in a proactive manner."

However, Chan conceded that there's much work to be done before officials can sort out exactly how much everyone is eligible to be paid. Chan said more staff will need to be hired to administer the scheme, and the government will even need to upgrade its computer system so that it can handle the complexities of the initiative. He refused to disclose how much money this will cost.

Secretary for Labour and Welfare Law Chi-kwong said the government hopes to start making payments before next year's budget.

The announcement comes after weeks of pressure from the public and political parties for Chan to do a better job in spreading Hong Kong's wealth around. Chan's unpopular budget was heavily criticised across the political spectrum for leaving out large segments of the population, as the bulk of his giveaway was allocated to massive tax breaks and rates waivers for relatively affluent taxpayers and property owners.

Both pro-democracy and pro-government legislators had demanded cash handouts for so-called “N-nothings” – who don’t benefit from various government welfare or housing programmes, but don’t earn enough to buy a home or benefit from tax breaks. Some lawmakers had threatened to vote down Chan's budget in the legislature.

For weeks, Chan had stood firm and refused to accept demands for universal cash handouts, saying these aren't compatible with this administration’s fiscal policy.

But the Chief Executive Carrie Lam all but confirmed that targeted handouts were on the cards when she admitted on Wednesday that Chan’s budget had failed to cover all sections of society, and the government wants more people to benefit from the relief measures.

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