Assistance for Resource-constrained Families with Anticipated Rise in Cost for Essential Services and Food

Mr Edward Chia Bing Hui asked the Minister for Social and Family Development how will the Ministry assist resource-low families in the anticipated rise in basic essential services such as cleaning and food services given that consumers may have to pay more for basic necessities.

The Government provides multiple layers of assistance to support lower-income individuals and their families. This includes financial assistance for basic living expenses, and subsidies for housing, healthcare and education. In addition, lower to middle income employees and self-employed persons (SEPs) who remain significantly affected by job or income loss due to the economic impact of COVID-19 can apply for financial support under the COVID-19 Recovery Grant (CRG) while they actively search for a new job or training opportunities.

The recent recommendations by the Tripartite Workgroup on Lower-Wage Workers, as accepted by the Government, will expand the coverage of Progressive Wages, include enhancements to the Local Qualifying Salary (LQS), and introduce the Progressive Wage Mark. The Government has also committed to enhancing the Workfare Income Supplement scheme by 2023. Collectively, these efforts will help to uplift the wages of lower-wage workers. While some businesses may pass on some of the additional costs to their consumers, lower-wage workers and their households are expected to see an overall improvement in their financial circumstances as a result of these changes.

ComCare assists lower-income households who require support for their basic living expenses. ComCare Long-Term Assistance (LTA) is provided to those who are permanently unable to work due to old age, illness or disability, and have little or no means of income and family support. Households that require help to tide over temporary financial difficulty are provided with ComCare Short-to-Medium-Term Assistance (SMTA). The income criteria for ComCare schemes are not hard thresholds. Rather, our Social Service Offices (SSOs) assess the applicants’ circumstances and needs, and exercise flexibility as needed to provide the necessary financial assistance and community support. With the expanded Progressive Wage approach, including the new LQS requirements, we expect more families to see an improvement in their financial circumstances and achieve self-reliance in the long run.

MSF regularly reviews the ComCare eligibility criteria and cash assistance rates. In our review, we look at expenditure data for daily living expenses of low-income families, as well as national statistical data collected by the Department of Statistics (DOS), including the prices of essential items. We also consider input from community stakeholders such as social workers and frontline officers who work with low-income families, as well as beneficiaries. The last review was conducted in 2019, and the next review will be in 2022. If there are any cost increases to the basket of goods and services purchased by households, these will be reflected in the review.

Building an inclusive and caring society is a collective effort. The community plays an important role and has continued to step up and partner the Government in helping those in need. If you come across individuals or families who require support, please reach out to us at our ComCare hotline at 1800-222-000, or approach the nearest SSO, so that we can follow up and offer the appropriate support.