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SCMP Editorial
Editorial
SCMP Editorial

New cash reward will get struggling Hongkongers working again

With the right incentives and support, the scheme can transform passive welfare into active empowerment of the city’s less well-off

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Residents of a housing block in Yuen Long, Hong Kong, catering to low-income families, in a photo taken in September 2025. When circumstances allow, most people prefer self-reliance rather than living on the dole. Photo: May Tse
SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.

Helping welfare recipients regain self-reliance is a laudable mission. With the right support and incentives, many can join the workforce and get back on their feet. This also helps invigorate the economy and curb public spending.

Hong Kong officials should be commended for piloting a new cash reward for those opting out of the social safety net. By shifting from the Comprehensive Social Security Allowance scheme (CSSA) to the Working Family Allowance programme (WFA), which supports low-income households, participants can receive a bonus of up to HK$45,000 (US$5,700) over a three-year period.

The “workfare” approach is worth implementing as it offers a dignified pathway out of dependence. It also helps restore people’s self-esteem and provide a financial runway to a stable job and income. At a time when the city is grappling with acute staffing shortages in sectors such as restaurants, retail, construction and caregiving, the initiative can unleash new economic vitality by tapping into this underutilised labour pool. With the estimated annual CSSA bill hitting HK$23 billion in 2025-26, or 3.9 per cent of total recurrent government expenditure, officials must explore ways to contain the ballooning social welfare budget in the long run.

Offering a financial carrot for welfare recipients to work again is only the first step. To enhance participation and sustainability, practical measures should be in place to help aspirants overcome hurdles. For single parents, this means more childcare support facilities and fewer rigid rules to help them qualify for the bonus. More proactive job-matching services are also needed to facilitate the switch.

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