HK moves away from poverty line based solely on income

Welfare Secretary Chris Sun on Friday outlined why the government is shifting away from a solely income-based poverty line in the fight against hardship.

Speaking on an RTHK radio programme, he detailed its new "multi-dimensional analysis framework" – comprising 21 indicators – which the administration will use to identify and assist vulnerable groups.

The other metrics, besides income, are grouped under factors involving employment, assets, reliance on cash welfare, housing, access to education or training, and physical health or social connectivity.

Sun's announcement follows Thursday's impact report, which declared that all key performance indicators for the three flagship targeted poverty alleviation initiatives – the School-based After School Care Scheme, the Community Living Room pilot and the Strive and Rise mentorship programme – had been met or exceeded.

Sun said the poverty line based purely on household cash income was deeply flawed in an ageing society.

“It can't tell you who is poor, what they need, or how you can help them – it simply cannot articulate it at all,” he said.

"Moreover, since we are entering an ageing society, if you solely calculate based on income, the elderly, who mostly don't work, would be counted as having no income.

“But in reality, the needs of the elderly aren't just about income; many elderly people require care and need support from others – and these factors simply cannot be quantified at all.

“Therefore, we can see that purely using this income poverty line calculation method cannot allow us to more accurately identify the groups that we truly need to help.”

Under the new framework, the government has already zeroed in on three target groups: subdivided flat households, single-parent families and elderly-only households.

Sun hinted that caregivers could become a fourth target group as the government continues to review societal needs.

He stressed that the framework is not a rigid checklist.

"It's not mechanical," he said. "We use it to identify groups whose circumstances, at this moment, require more precise intervention."

When asked about concerns that scrapping the poverty line might make it harder to identify those in need – particularly the "hidden" poor who do not qualify for means-tested benefits – Sun insisted the new approach is actually more effective.

"Take elderly people living alone. They may not have low income, but they are isolated and need care. The old poverty line couldn't see them – they were invisible," he said.

Sun pointed to recent data-driven efforts as proof of the new approach's effectiveness. He said community care teams have already visited more than 100,000 elderly-only households, leading to over 13,000 service referrals, including 3,500 emergency alarm installations.

The government also plans to institutionalise the "government-business-civil society" model that has underpinned the targeted programmes. A digital matching platform is expected to launch this year to better channel business-sector resources into community welfare projects.

"We've seen that when the government and businesses join forces, the results come faster and are more effective," Sun said.

A new poverty commission, to be formed shortly, will focus on refining this coordination mechanism.

Edited by Robert Kemp ...