Nearly seven in 10 unemployed people are unwilling to apply for welfare payments due to its labeling effect, a study has found.

Three grassroots concern groups, including CSSA Rights Defence, CSSA Alliance and Hong Kong Social Workers' General Union, polled 130 jobless in the middle of last month.

The survey showed that only 31 percent of respondents were willing to apply for the scheme, while 87 percent preferred the idea of an unemployment benefits program rather than the Comprehensive Social Security Assistance scheme.

Some 36 percent of those who found the assistance unappealing said its recipients were likely to be labeled negatively by the public, such as being lazy.

Others mentioned the CSSA's complex application procedure, opposition from family members, high application thresholds or that the CSSA would be insufficient to pay their bills.

Over four out of 10 said they had enough savings to support their living costs for around one month.

"Many people don't want to be discriminated against even after losing their jobs . .. We haven't seen the government make any effort to eliminate discrimination," social worker Jackie Chen Hung-sau said.

"Under such an urgent situation, it is unemployment benefits that people in need are willing to seek help with, but the government still doesn't want to provide that," Chen added.

Back in late March, labor and welfare secretary Law Chi-kwong announced plans to help the jobless by easing the CSSA's criteria for six months.

But he rejected calls from some lawmakers and concern groups to offer financial aid to those who lost their jobs during the pandemic directly, saying that it takes time to establish such a system and "imminent needs cannot be relieved expeditiously."

The city's unemployment rate increased to 5.2 percent in April, higher than 3.7 percent in December.

Chen also said that rent allowances provided by CSSA are too low, forcing some to move to cheaper places in order to qualify for the scheme.

CSSA offers a maximum of HK$1,885 to support rents of recipients who are single, while families of four can receive HK$5,275. The government also plans to give recipients an extra monthly subsidy worth 15 percent of the maximum rent assistance they are eligible for.

Roughly 91.5 percent of survey respondents were tenants, with nearly half paying more rent than the CSSA offers.

But some 65 percent said they would not consider finding a cheaper apartment just to qualify for the CSSA, citing inconveniences for elders or disabled family members or a waste of money and needing time to move.

mandy.zheng@singtaonewcorp.com

Most jobless fear welfare stigma