According to the Recommendation on the Drafting of the Twelfth Five-Year Plan from the Central Committee of the Chinese Communist Party （CCCCP），“realizing the full coverage of social assistance system in both urban and rural areas” is the emphasis of our work for the next period. The paper first describes the implementation status and features of the urban and rural social assistance system in 2010. According to the author，there are four major problems regarding the current social assistance system. First，price increase has significantly affected low income families. Secondly，the threshold of social welfare for low income families should be adjusted. Third，relying on local government to raise capital is not a feasible plan to achieve. Last but not least，the notion that “full coverage without prerequisite” is not scientifically accurate. Based on the analysis，the author makes several proposals to solve those problems.