A significant number of senior citizens rely on financial assistance provided by the government for their public transport needs. (Photo : www.storify.com)
An additional 2.5 billion yuan ($390 million) will be allocated for Shanghai's senior citizens every year under a revised social welfare program set to start next year, said the city government on Thursday, Dec. 3, as reported by Shanghai Daily.
Under the terms of the new system, all residents aged 65 and over will be given a Seniors' Card that will be credited with a certain sum of money each month. At first, the credit will only be used to pay for public transportation, but the scope of social services is likely to be extended in the future, according to an official at a press conference.
For people aged 65 to 69, the subsidy will be 50 yuan; those aged 70 to 89, 120 yuan; those aged 90 to 99, 300 yuan; and those aged 100 or over will receive 500 yuan.
"The new policy is designed to improve welfare standards, benefit more people and make the allocation of funds fairer for all," said the official.
The new system is expected to cost the government 3.3 billion yuan a year, a significant increase from 850 million yuan currently spent on senior citizens.
With the lowering of the qualifying age, the number of people who will receive financial assistance will increase from 1.7 million to 2.7 million.
Currently, all citizens 70 and over are given a transport card, allowing them to travel for free on buses and the subway. Those aged 85 and over also receive a free bottle of milk every day, and those over 90 get an additional 300 yuan per month in financial subsidy.
Under the new system, the transport cards will be discontinued, although free milk will still be provided to those 85 and over, said the official.
When asked about the figure of 120 yuan for people aged 70 to 89, the largest of the subgroups, Wu Jianrong, the deputy secretary-general of the government, said that it was based on the current usage of the travel cards. He said that 120 yuan will more than cover the cost of bus and subway fares for the vast majority of the group.
"According to figures from the city's transport authority, about 1.6 million seniors, or 60 percent of the total, did not use their cards at all in October. A further 20 percent used them fewer than 16 times, while only about 8 percent used them 40 times or more," said Wu.
Wu added that most people will be better off with the card scheme, although those who frequently travel will feel like they are losing out.
