The Democratic Alliance (DA) expressed concern regarding the changes in the distribution of social grants by the South African Social Security Agency (Sassa).
Sassa pays permanent grants to more than 18 million people. This includes the Older Persons pension grant, Disability grant, War Veterans grant, Care Dependency grant, Foster Child grant, Child Support grant, Child Support grant Top-Up and Grant-in-aid.
The party is calling on Social Development Minister Sisisi Tolashe and relevant stakeholders to take immediate action to address the challenges faced by beneficiaries, particularly older persons.
Change In Sassa Grant Payment Policy
In 2023, a statement from Sassa and Postbank revealed plans to phase out all physical cash payment points (CPPs), including cash withdrawal services at Post Offices which concluded in March 2024.
The Post Office has stopped distributing cash for Sassa grants due to its financial difficulties. The agency has incurred a R6 billion loss over the past three years, with an additional R2.2 billion loss in the 2022/2023 financial year.
As part of its business rescue plan, the Post Office is set to close 420 loss-making branches and retrench 6,000 employees, with the potential for a R3.8 billion government bailout. The plan also includes phasing out revenue streams that have “failed to produce revenue”.
The revenue services they are referring to include Over The Counter (‘OTC’) payment services, which include Sassa and cash pay points (‘CPP”) payments.
The DA says the phased withdrawal of cash distribution by Postbank and Post Offices has led to confusion and distress among Sassa grant recipients, They argue that many grant beneficiaries are now being turned away due to a lack of clarity regarding the transition from Sassa gold cards to the new Postbank black cards.
The phased withdrawal of cash distribution by Postbank and Post Offices has led to many SASSA grant recipients being turned away, as the transition from SASSA gold cards to the new Postbank black cards has not been effectively communicated.
At the end of September 2024, it was revealed that Postbank is beginning to roll out a new Black Card. The initial rollout of the Sassa Postbank Black Card began in Gauteng, with card issuance facilitated at select Boxer and Pick n Pay stores across the province.
This lack of information has left vulnerable individuals uncertain about how to access their grants.
The rollout of new cards comes at a time when several Gold Card users began encountering challenges with using their Sassa cards. It remains unclear whether these matters are related.
The DA says limiting card issuance to participating retailers like Pick ’n Pay and Boxer stores has also presented additional barriers for grant recipients.
They argue that many beneficiaries find it difficult to travel to these locations, especially those in rural areas or with limited mobility.
We are deeply concerned about the potential hardships this may cause, especially for those already facing financial challenges.
The DA is calling for clear communication about the validity of Sassa gold cards as well as the introduction of measures to support grant recipients, and alternative solutions to improve access to grant distribution points. The party is also urging the Minister to prioritise this issue and work towards a resolution that ensures all Sassa beneficiaries receive the support they need without unnecessary barriers.
