Report cites widest ever wealth gap, 650,000 in working poor households

One of every six people in Hong Kong lives in poverty, according to a 10-year study by Oxfam released on Tuesday. The report found that the population in working poor households reached over 650,000 in the second quarter of 2012. That is the highest number ever in Hong Kong. The survey also showed the wealth gap have widened during the period.

The report pointed out that in the past 10 years the number of poor households has remained at over 400,000, while the number of poor people has remained at more than 1.1 million, accounting for about 17 percent of the total population. The NGO defined a poor household as one whose monthly income is less than 50 percent of the median income for all households of corresponding size.

In the second quarter of 2012, the Oxfam survey showed 10 percent or 194,000 households of all working households were below that unofficial poverty line. That is an 11.6 percent increase from 174,000 households in 2003.

The survey also revealed that the median monthly household income of the wealthiest 10 percent of households was 26.1 times that of the poorest 10 percent of households in the second quarter of 2012. The median monthly income of the poorest 10 percent households increased only marginally, from HK$3,000 ($387.08) in 2003 to HK$3,400 in the second quarter of 2012. Meanwhile, the median monthly income of the wealthiest 10 percent households increased almost 30 percent over the same time span.

The survey also found that about 60 percent of households of working poor live below the level of Comprehensive Social Security Assistance, or CSSA.

Stephen Fisher, director general of Oxfam, suggested "the government should explore the feasibility of providing a Low Income Family Allowance, as a supplementary provision to the minimum wage".

Although the Statutory Minimum Wage came into force in 2011, it is not enough for a worker at that income level to support a family of three or four members, said Fisher.

The allowance could be provided for families considering applying for CSSA, those currently receiving low income CSSA but wish to leave the social security net, and those who refuse to apply for CSSA to avoid negative labeling, suggested Oxfam.

The government announced on Nov 9 the establishment of the renewed Commission on Poverty, comprising 18 non-official members and four ex-officio members appointed by the Chief Executive, for a term of two years, starting from Dec 1, 2012.

The commission will examine conditions and causes of poverty in Hong Kong, review existing policies and formulate new policies to improve living standards, promote social mobility and provide a safety net to help the disadvantaged and prevent social exclusion. It will also try innovative approaches, such as setting an official poverty line for Hong Kong, for the first time.

Law Chi-kwong, associate professor at the Department of Social Work and Social Administration of the University of Hong Kong, also a member of the commission, told China Daily that the current system to help low income households, such as the Work Incentive Transport Subsidy Scheme, is only of small help. He said a Low Income Family Allowance could be one consideration for the commission.

fanfeifei@chinadailyhk.com