Post-COVID recovery and government support reduce the need for additional financial assistance.
According to a recent report by the Ministry of Social and Family Development (MSF) on Nov 19, 2024, a smaller proportion of lower-income families have returned to receiving government financial assistance within three years of exiting the ComCare Short-To-Medium-Term Assistance (SMTA) scheme. In 2020, 54% of families who left the scheme later required help again, down from 63% in 2019. This marks a positive trend as fewer families are relying on aid, reflecting a broader post-COVID-19 economic recovery and the success of government programs designed to support families in need.
The report also revealed a decrease in the number of families receiving aid through the SMTA scheme, with only 22,960 families benefiting in 2023, a 16% drop from the previous year. Additionally, the total amount disbursed through the scheme fell from $112.5 million in 2022 to $105.1 million in 2023. Despite these reductions, the amount of assistance per beneficiary increased, with the median monthly sum rising from $300 in 2019 to $370 in 2023.
Families that returned to the SMTA scheme are more likely to have dependents, family members who cannot work due to medical reasons, or live in one- or two-room rental flats. These families face ongoing struggles with issues like health problems, caregiving responsibilities, and job instability, particularly in the gig economy.
The report also highlighted the success of the ComLink+ scheme, which aims to help low-income families improve their financial circumstances through incentives and support for stable employment and housing. By addressing multiple needs, such as education and housing, the ComLink+ program seeks to provide long-term self-reliance, reducing the recurrence of financial aid dependency.
In addition to the SMTA scheme, the report covered the Long-Term Assistance Scheme, which supports those unable to work due to old age or illness. This scheme also saw a decrease in recipients, as more seniors benefit from expanded government initiatives like the Silver Support Scheme and the Workfare Income Supplement, improving retirement adequacy for lower-income seniors.
