The underprivileged will be eligible for state a housing subsidy starting in October even if they have immediate family members who have enough income or assets to be able to support them, the welfare ministry said Friday.

The Ministry of Health and Welfare will carry out of a phased softening of standing regulations that disqualify people from various government subsidies because they have parents or children who are financially capable of helping them. Such rules will be lifted for housing fund as one of the early changes, ministry officials said.

The criteria for housing fund eligibility will also be relaxed, from household income of under 43 percent of the median to 45 percent, according to the ministry. The measure aims to lighten the housing cost burden for low-income people. 

The government action is a response to cited loopholes in the national welfare program that excludes people living in poverty from benefits because they have close family members with income, even in cases when they have no contact with their family members, either because they cannot be reached or refuse to provide monetary support.

Starting from January next year, the government will give basic sustenance and medical subsidies to households who have handicapped family members with low income, regardless of the family status.

The same change will go into effect from January 2022 for households with elderly family members with low income.

As of 2015, there were 930,000 people in 630,000 households who were eligible for government subsidies due to their income level but could not receive them because they had family members who had enough wealth. (Yonhap)