The Society for Community Organisation on Tuesday welcomed a government move to boost allowances for 50,000 elderly people, but called for an easing of restrictions to allow more elders to benefit from the handout.

The government confirmed on Monday that the lower tier of the Old Age Living Allowance would be abolished, meaning people who previously received HK$2,920 per month would see their payout rise to HK$3,915 from September, fulfilling a pledge made by Chief Executive Carrie Lam two years ago.

However, the handout is still subject to limits on income and assets. Sze Lai-shan, deputy director of Soco, told RTHK's Hong Kong Today programme that changes should be made to allow larger families to claim even if their income is higher than the current limit.

"I think the income, if they can increase for them, if they have three members or four members, for now they have a limit for those elderly people or couples," she told RTHK's Janice Wong. "But they do not pay attention to those elderly who still have families; their children are still young, they don't have income."

The allowance has an income limit for single elderly people of $10,430 per month, or $15,810 for a married couple. Asset limits are also in place, though a claimant's home is excluded from the calculation.