Work Incentive Transport Subsidy opens for applications in October; fewer than 100,000 expected to benefit

Who qualifies for the transport subsidy and how much is it?

The Work Incentive Transport Subsidy Scheme opens for applications on 3 October 2011, with households as the application unit; eligible applicants can receive HK$600 a month for up to a year. From next Thursday, application forms will be available at 72 offices under the Labour Department, the Home Affairs Department and the Social Welfare Department. Applicants must declare the whole household’s assets — including bank deposits, cash savings and the cash value of insurance plans — and meet the prescribed income ceiling.

Why has the expected beneficiary count fallen?

The three-year scheme is funded with HK$4.8 billion. Matthew Cheung, Secretary for Labour and Welfare, said the first eligible applicants could receive HK$3,600 by year-end, with claims backdated to 1 April 2011 and covering the past 6 to 12 months; the Labour Department has set up a new office on Middle Road, Tsim Sha Tsui.

The government originally estimated 436,000 beneficiaries, but after the minimum wage took effect in May 2011 lifted some grassroots workers’ pay, Census and Statistics Department data for the second quarter of 2011 showed only 404,000 met the income limit — 32,000 fell out. Cheung admitted the benchmarks were set using figures from the second quarter of the previous year, and pledged a mid-term review after one year and a full review after three.

Why is the application process controversial?

Legislator Lee Cheuk-yan argued that requiring both income and bank-deposit declarations invites double counting, disqualifying more people — he expected fewer than 100,000 to ultimately benefit.

The official form demands extensive disclosure: basic personal details of the applicant and household members, each member’s employment and income, plus household assets including bank deposits, cash savings, funds and insurance cash values. Exempt from declaration are the government’s HK$6,000 handout, MPF, gambling winnings and other government financial aid; applicants must submit income and asset proof of every kind. Chan Yu-cheung of the transport-concerns coalition said the scheme had lost its purpose of encouraging employment.