China adopts law to expand and improve social assistance

China's top legislature on Thursday voted to adopt a law on social assistance, aimed at improving essential living support for vulnerable groups.

The law expands coverage to improve access to assistance for low-income families, broadens assistance from basic subsistence to more development-oriented support, and encourages greater participation of social roles.

The law was passed after its third reading at a legislative session of the Standing Committee of the National People's Congress, which runs from Monday to Thursday. The law will take effect on July 1, 2026.

Expands access to include more vulnerable groups

One of the key feature of social assistance law is the expansion of eligible groups. In addition to traditional beneficiaries such as those in extreme hardship and households receiving minimum living allowances, the law now includes marginal low-income households and families facing heavy essential expenses.

Households with per capita income below 1.5 times the local minimum standard can be classified as marginal low-income, while those with high essential expenditures are assessed based on the share of such costs in their income. This adjustment addresses the "cliff effect," under which households just above the threshold did not qualify for assistance despite facing financial pressure.

In 2023, more than 44 million people were covered by minimum living allowances or classified as extremely poor, alongside over 20 million others including marginal households, according to data from the Chinese Ministry of Civil Affairs. By March 2024, about 7.28 million marginal individuals and 5.84 million people facing heavy essential spending had received targeted assistance. The law incorporates these groups into the national social assistance system, extending coverage beyond existing categories.

Improves coordination and delivery of assistance

The law provides a legal basis for better information sharing and policy alignment across departments. In practice, information such as household income and assets has primarily been managed by civil affairs authorities, while other forms of assistance are handled separately. This has made it difficult to connect different programs and keep information up to date. By formalizing the mechanisms and coordination processes, the law aims to streamline how assistance is delivered and reduce administrative barriers.

The law also includes provisions to involve social organizations in service delivery. Social workers and service institutions are encouraged to provide support such as home visits, counseling, and resource coordination, while the government may purchase these services to complement public provision. This approach integrates professional social services into the assistance system, expanding the range of support available beyond financial aid alone.

Shifts from basic aid to broader, service-based support

A central challenge in social assistance is that fixed rules often fail to reflect real-life situations. The law helps address a common challenge in social assistance systems: fixed eligibility rules do not always reflect real-life needs. In practice, support is often determined by strict income thresholds, but financial hardship can vary widely. For example, some households may earn slightly above the cutoff but still face significant pressure due to medical or education expenses. 

By introducing service-based assistance, the law allows support to be provided in more flexible ways. People who do not qualify for cash benefits can still access services such as care or counseling. This approach helps bridge the gap between rigid policy criteria and more complex, real-world situations.

The social assistance law expands coverage, improves coordination and broadens the form of support provided. By bringing more groups into the system and strengthening how assistance is delivered, it addresses gaps in existing programs. As it takes effect in July 2026, its impact will depend on implementation at the local level, particularly in coordination and service delivery.