The country will reform its income distribution system to reverse the growing wealth gap, said Party General Secretary Hu Jintao yesterday in a keynote speech at the 17th National Congress of the Communist Party of China (CPC).

"We will increase transfer payments, regulate incomes through taxation, break business monopolies, create equal opportunities and overhaul income distribution practices to gradually, reverse the growing income disparity," he told more than 2,200 delegates to the congress.

Hu's report also included the subject of "people's livelihood".

He said although people have achieved a relatively comfortable standard of living, the growing gap in income distribution has not been completely reversed, and it has become more difficult to accommodate all interests.

"However, equitable income distribution is an important indication of social equity," he said.

Hu pledged that a reasonable and orderly pattern of income distribution will be put in place, with middle-income people making up the majority, and absolute poverty to be eliminated.

"Vigorous efforts will be made to raise the incomes of low-income groups, increase poverty-alleviation aid and the minimum wage, and set up regular pay increases for enterprise employees," Hu said.

He also made it clear the Party will protect lawful incomes.

Reforming income distribution is only one of the blueprints Hu mapped out for improving people's livelihoods over the next five years. His report also detailed plans for developing education, employment, medical and old-age care, and housing.

He said the country's aims include:

- The country will work to ensure children from poor families and those of rural migrant workers living in cities to enjoy the same access to compulsory education as urban children.

- To establish a unified, standardized labor market and ensure equal employment opportunities for both urban and rural residents. The country will also improve employment aid for the needy and make it a priority to find jobs for zero-employment families.

- To establish a sound social security system with basic old-age pensions, medical care and subsistence allowances, and supplemented by charity and commercial insurance. The country will also improve the low-rent housing system and resolve housing difficulties of low-income families in urban areas.

- To maintain public medical and healthcare services, focusing on rural areas and attaching equal importance to traditional Chinese and Western medicines.

Experts said Hu's speech set a clear direction to achieve a harmonious society.

"It says clearly how to build a harmonious, well-off society in an all-round way," said Li Junru, vice-president of the Party School of the Central Committee of the CPC.

Li also said it is the first time the "people's livelihood" has been officially included in a Party report, putting it high on the Party's agenda.