Welfare Card Reforms Spark Outcry Amidst Tightened Eligibility

The Thai government's move to tighten eligibility for its state welfare card program has backfired, drawing criticism as thousands of elderly people, farmers, and low-income workers find themselves excluded from essential benefits. The reforms, intended to ensure aid reaches only the genuinely poor, have instead highlighted the complexities of poverty identification and the potential for well-intentioned policies to inadvertently harm vulnerable populations. The state welfare card program, launched in 2017 under the Gen Prayut Chan-o-cha administration, aimed to provide targeted assistance to low-income households and reduce inequality. It offers a monthly allowance of 300 baht for essential goods, alongside discounts on utilities and public transport, with annual spending exceeding 50 billion baht. However, this year's introduction of stricter criteria has significantly reduced the number of beneficiaries. Out of 18.82 million applicants, only 9.51 million qualified, a marked decrease from the roughly 13 million who previously received aid. The primary reasons for rejection were vehicle ownership (41% of unsuccessful applications) and outstanding loans exceeding 100,000 baht. Many applicants argue that the new rules fail to reflect their real-life circumstances. They point to essential assets like aging pickup trucks or motorcycles used for farming and work, or loans taken out for housing and education, which are now disqualifying them. Somchai Jitsuchon, research director for Inclusive Development at the Thailand Development Research Institute (TDRI), emphasized the difficulty in accurately identifying poverty. "Poverty is harder to identify than people think," he stated, noting that assets like gold or a pickup truck do not automatically signify wealth. He also highlighted the challenge posed by the large informal economy, where irregular earnings are difficult to verify. "For street vendors, the state does not know exactly how much they earn each day, what their costs are, or whether they make a profit or a loss. Sometimes even the sellers themselves do not know," Mr Somchai explained. Governments often rely on asset ownership, including land, bank deposits, and vehicles. However, Mr Somchai warned such indicators frequently failed to capture people's real financial circumstances. Some applicants, he noted, had vehicles registered in their names even though they no longer owned them, while others relied on decades-old pickup trucks worth very little but essential for earning a living. "A vehicle should not automatically mean someone is not poor," he said. "Some second-hand vehicles are worth less than 100,000 baht and are simply tools for earning a living." Mr Somchai believes national databases should be supplemented by local verification through village heads, village health volunteers, and local administrative organizations. "They know who genuinely needs help," he said. Such cooperation, he argued, could reduce both long-standing welfare problems: people receiving benefits despite not qualifying and genuinely poor households being excluded. He believes the government's increased focus on people who have fallen through the cracks is a welcome change. "There are always two problems -- leakage and exclusion. A good welfare system has to reduce both." Varakorn Samakoses, an economist and president of Dhurakij Pundit University, agreed. Cash assistance, he said, remains one of the most effective ways of helping poor households, but accurately identifying eligible recipients has challenged governments around the world. "The correct approach is to discuss the issue and go into communities to see the reality," Mr Varakorn said. He said some of the poorest people were often those least able to deal with government procedures, including people lacking proper identification documents or living in informal settlements. "They may not even dare to visit district offices because they fear problems arising from their documents." Mr Varakorn said the Interior Ministry's local administrative network is best placed to identify genuine hardship because village heads and district chiefs understand conditions within their communities. He criticized earlier screening rules for assuming poor people should not own vehicles or certain assets. "Those rules were created from imagination rather than reality," he said. "Poor people can own old motorcycles because they need them to work." The issue gained wider attention after several elderly applicants faced difficulties while attempting to appeal. In Nan province, Ngao, 65, from Pua district, travelled from a mountain village to a Bank for Agriculture and Agricultural Cooperatives branch to appeal after losing her welfare entitlement. After waiting from afternoon until evening, she collapsed outside the bank and later died in hospital. Her younger sister Amphai said the family was devastated and wanted the government to reconsider procedures that placed additional burdens on elderly people living in remote areas. Villagers said many residents in the area had also lost their benefits because of old vehicle registrations or loans used for farming, building houses, and supporting children. In Phetchabun, another elderly woman died in a road accident while travelling to appeal her welfare status. The cases prompted Prime Minister Anutin Charnvirakul to instruct agencies to adopt a more proactive approach. Mr Anutin said government agencies should not wait for people to travel to appeal but should instead visit communities to verify cases directly. Deputy Interior Minister Polapee Suwunchwee said the ministry would work with village heads, district chiefs, and local officials to review rejected applications. Officials would examine vehicle conditions, housing, financial records, and cases where personal information may have been used without consent.