Aid package offers relief for needy but worries linger

The vulnerable and low-income earners may face difficulties making ends meet in the long term, experts told The Straits Times, even as they welcomed the recent announcement of a $1.5 billion support package that is geared towards this group.

The package that Deputy Prime Minister Lawrence Wong announced last Tuesday includes additional goods and services tax (GST) vouchers of up to $300 and a $100 household utilities credit for all households.

ComCare cash payouts will also be permanently increased - a one-person household on Long-Term Assistance will receive $640 per month, versus the current $600, while larger households will receive more.

The $1.5 billion package is the latest in a string of packages and grants rolled out by the Government in recent years to help Singaporeans cope with the rising cost of living amid the Covid-19 pandemic.

Fei Yue Family Service Centre senior assistant director Joyz Tan said while the social service agency's clients - including seniors and at-risk families - are grateful for the package, they wonder how often such aid can be rolled out to help tide low-wage earners and the vulnerable through inflation and supply chain disruptions.

She said: "Many of our clients share that they face higher stress or worries about how they will cope in the long term. Previously, whatever they received in terms of financial assistance could last them longer throughout the month compared to now."

Some of her clients, particularly the elderly, have now resorted to cutting their monthly spending on food. For example, instead of buying fresh eggs in the supermarket, they now grab cheaper but processed food off the shelves, Ms Tan added.

In addition to lower-income families, the $1.5 billion package will help the likes of Ms Siti Farhana, who lives with her three children in a two-room rental flat in Boon Lay. The 31-year-old childcare teacher earns $2,600 a month and is left with only a few hundred dollars each month after spending on necessities like groceries, diapers, transportation and childcare, although her fiance helps out with the family's monthly expenses.

She said she feels the pinch from the rising cost of products as she used to spend around $100 per month on items like diapers, shampoo and toothpaste, but now forks out about $50 to $100 more.

The Institute of Policy Studies' Social Lab head and principal research fellow Mathew Mathews said additional assistance like the $1.5 billion aid package is crucial to tide the underprivileged through this period of uncertainty.

Singapore University of Social Sciences associate professor Walter Theseira said the additional GST vouchers in the package should cover a few months of price increases due to inflation for the average household.

"It will, however, not remove all the effects of inflation, so they may still have some difficulties making ends meet without changing some of their purchasing behaviours or receiving additional income," he said.

Adjusting assistance levels when the cost of living changes would help ensure households can maintain the same quality of life when facing high inflation, he added.

"Our current practice is to review this periodically or when needed - such as now, due to high inflation - but this practice creates uncertainty for those receiving assistance, and there is a risk that if the review is not timely, many households on assistance could be deprived of a minimum standard of living."

While agreeing the new package would help the low-income and vulnerable groups to an extent, Touch Community Services' chief executive James Tan said: "The Government cannot alone be responsible for solutions. It is also important for the community to come alongside and complement the Government's efforts for greater impact."

• Additional reporting by Yong Li Xuan