Review of Government Social Assistance Payouts Given Recent Study on Minimum Income Standards for Households in Singapore

64 Mr Seah Kian Peng asked the Minister for Social and Family Development in light of the findings in the recent study by the National University of Singapore Lee Kuan Yew School of Public Policy (LKYSPP) and Nanyang Technological University (NTU) on the Minimum Income Standards for Households in Singapore (2021), whether the Ministry will be reviewing the various social assistance scheme payouts, in particular that of the Public Assistance Scheme.

Mr Masagos Zulkifli B M M: The Government provides multiple lines of assistance to support individuals and families in a holistic manner. These range from broad-based subsidies in housing, healthcare and education, to more targeted forms of support like ComCare financial assistance for those who require additional support for their basic living expenses. Our taxes and transfers are progressive. Low-income households receive the highest level of transfers. We keep the tax burden as low as possible for the middle-income, so that they get to keep more of their pay and have the freedom of choice in spending, including to give back to those with less. Together, this complements family support and the generosity of the community as key pillars of our Social Compact to uplift those in need.

ComCare Long-Term Assistance (LTA), also referred to as Public Assistance, 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).

When assessing ComCare applications, our Social Service Offices (SSOs) work with the family to understand their needs holistically and the streams of support that they have. ComCare beneficiaries receive comprehensive support that includes cash assistance to help the family meet the income shortfall for their daily living expenses on basic needs, such as food, transport and communications. Depending on the household’s needs, they may also receive free medical treatment at public healthcare institutions and be referred to relevant Government agencies or our community partners for further support.

MSF reviews the ComCare cash assistance rates regularly to ensure that it keeps pace with the cost of living to help recipients meet their daily needs and that ComCare objectives are being met. In our reviews, we look at daily living expenditure data of low-income families collected by the Department of Statistics. We also consider input from stakeholders such as social workers, frontline officers, and beneficiaries. We last increased our ComCare cash assistance rates in July 2019.

The "Minimum Income Standards for Households in Singapore" study published by the Lee Kuan Yew School of Public Policy and NTU, like other studies and reports, offers an additional data point for Government on Singaporean households’ expectations and aspirations in terms of their well-being. When considering such studies, it is important to understand their strengths and limitations in their design, methodology or conclusions, so that we draw the right learning points.

For instance:

(a) The study was done through focus group discussions that involved around 200 participants across 24 focus groups, with most of them having post-Secondary education and about 15% living in private properties. Therefore, the study and findings are: firstly, not representative of the opinion of the national population; secondly, not just merely reflective of the opinions of what low-income families see as basic needs.

(b) The study’s estimates include discretionary expenditure items such as private enrichment classes, overseas holidays and jewellery and perfumes. For lower-income families, there are alternatives to some of these items, such as Government-subsidised student care centres or enrichment and tuition classes provided by self-help groups at low cost.

(c) The level of subsidies and social transfers received by lower-income families may not be fully reflected, as the study did not factor in non-cash assistance such as rebates for Service & Conservancy Charges. It also would not be able to reflect the flexibility that agencies exercise to provide greater assistance to families with extenuating circumstances.

Every study has inherent limitations as assumptions must be made which do not always pan out in reality. However, studies like the recent MIS study are useful in encouraging conversations on the kind of society we desire and how to get there collectively. The Government will certainly continue to strengthen social support and the delivery of social services to help those in need. At the same time, we hope that greater awareness of the various needs in our society will lead many individuals, groups and corporates who care to also step forth to play an active part in meeting these needs and help to build a more caring and inclusive society.