Social safety net expanded to help more

China will make greater efforts to secure the basic livelihoods of people in hardship and meet their basic living needs, according to a decision made at a State Council Executive Meeting chaired by Premier Li Keqiang on Thursday.

It was noted at the meeting that due to the COVID-19 pandemic and natural disasters, the number of people in difficulty has increased. In the first half of this year, more than 120 billion yuan ($17.6 billion) in fiscal funds were spent on providing subsistence allowances and other subsidies across the nation, marking a 7 percent increase year-on-year.

"We always put the people first. At present, particularly in the face of COVID-19 and natural disasters, we must scale up assistance and support for people in difficulty and ensure their basic living needs," Li said.

The meeting urged full implementation of the policy to expand coverage of subsistence allowances. Dynamic monitoring will be enhanced so that those eligible for allowances will be covered on a timely basis.

A one-time living subsidy will be given to subsistence allowance recipients and other people in need, and the funds must be delivered as quickly as possible.

Greater assistance will be extended to people in distress. The policy of providing temporary, one-time relief allowances must be promptly implemented.

The meeting stressed that from September 2022 to March 2023, the mechanism of raising social benefits in tandem with price increases will be adjusted.

In addition to existing groups, including people living on subsistence allowances, those receiving unemployment insurance benefits and orphans, the mechanism will be extended to cover those receiving unemployment subsidies and people nearing eligibility thresholds for subsistence allowances.

The expanded policy measures will cover 67 million people in total. One of the triggers of the mechanism, monthly consumer price index increases, will be lowered to 3 percent from the previous 3.5 percent.

"We must step up dynamic monitoring to detect, in a timely manner, people who have lost jobs and those eligible for subsistence allowances or in temporary distress. Social protection and assistance should be expanded whenever needed so that all eligible recipients are duly covered and provided for. The mechanism of raising social benefits pro rata with price increases should be promptly activated as situations require," Li said.

The central government will provide proportionate funding subsidies for rising local expenditure by expanding coverage of subsistence allowances and other relief schemes and adjusting the pro rata price increase mechanism. The funds will be distributed by local authorities in advance and settled later under central public finance auspices. The meeting also announced measures to support the eldercare and childcare industries to help them overcome difficulties and restore growth.

"The eldercare and childcare industries are closely related to people's livelihoods, and play an important role in taking care of the aged and children. Related market entities are facing difficulties. We must step up support for them," Li said.

Rental fees for State-owned properties will be waived through the end of the year for micro, small and medium-sized businesses as well as the self-employed. Localities where conditions permit will adopt practical and effective measures to support reductions or exemptions of rent payments by owners of private properties.