-30(b)
The CSSA expenditure increased by nearly three times from $2.4 billion in
1993/94 to $9.4 billion in 1997/98.
(c)
The average monthly CSSA payments for households of four or more persons
are now considerably higher than low-end wages.
(d)
The number of ‘unemployment’ CSSA cases increased over six times from
3,500 in September 1993 to 26,200 in September 1998, representing 12% of the
total CSSA caseload. During the same period, the ‘single parent’ CSSA cases
increased by 268% from 5,700 to 20,900, representing 10% of the total CSSA
caseload.
(e)
There have been increasing calls for the Government to take more effective
measures to prevent abuse of CSSA. A special hot-line for reporting suspected
CSSA fraud cases was set up by the Social Welfare Department (SWD) in
August 1998. Up to the end of September 1998, it had received some 1,300
calls.”
The estimated CSSA expenditure for 1998/99 is expected to be above $13 billion.
The Government will spend much more on CSSA in the years to come even if all the
SG’s recommendations (see paragraph 8-29 below) are accepted and implemented.”74
80.
The Steering Group was therefore examining increases in CSSA
expenditure over the scheme as a whole, seeking to identify contributing factors
and seeking ways to bring such expenditure under control.
There is no
suggestion that CSSA claims by new arrivals merited any special attention or
that they were a cause for concern.
81.
The Steering Group made a series of policy recommendations,
applicable across-the-board, mainly aimed at encouraging CSSA recipients to
get jobs. To take one example, the Report noted that CSSA payments made to
larger households resulted in per capita income that was larger than the per
capita income of non-CSSA households in the lowest expenditure group,75 with
the likely result that able-bodied persons would opt to remain on welfare rather
than getting a job. In response, the Report recommended an across-the-board
reduction in the standard rate of CSSA of 10% for households with three able-
74
Executive Summary, §§4 and 5.
75
Report, §47.
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