The social welfare policy has been an important issue on the political agenda. Due to the particular social and political circumstance in Taiwan, the government tended to adopt a conservative position toward the social welfare policy. Following the political reform in the 1980s and the competition of parties in the 1990s, political arties have endeavored to introduce a series of new social welfare policies. However, the political party substitution after the 2000 Presidential election marked a distinctive stage of the development of the social welfare policy. This study conducts an analysis of the senior Citizens’ Life Allowance of Middle-to-Low Income Households, first introduced by KMT before the substitution, in an attempt to investigate the extent to which this policy was transformed along with the process of competition between parties. This analysis includes the development of allowance policy, and the roles and functions of the Senior Citizens’ Life Allowance of Middle-to-Low Income Households. My conclusion is that this kind of social allowance politics should be integrated into the social welfare system.