While social grants that are administered by the South African Social Security Agency (Sassa) play a crucial role in ensuring that impoverished South Africans can avoid absolute poverty, experts believe that the country’s social security is not functioning effectively.
There have been calls for the government to increase its investment on social security to keep up with unemployment, according to Mervyn Abrahams who is the Programme Coordinator Pietermaritzburg Economic Justice and Dignity.
Because we have such high unemployment levels, our Social Security net needs to prevent people from going into abject poverty and needs to catch households where children might possibly die because of malnutrition.
Abrahams goes on to say that although some economists may not agree, additional government investment into South Africa’s social grant system will drive further demand into the country’s economy.
South Africa currently has over 18 million people who depend on some form of Sassa social grant. These include social grants that are paid out to the elderly, children and people living with a disability among others.
Announced Permanent Increases for Permanent Grants
During his 2023/24 Budget speech in February, Finance Minister Enoch Godongwana announced that there would be a 5% increase on all permanent social grants throughout the course of the next financial year.
Godongwana explained that expenditure on social grants would increase from R233 billion in 2022/23 to R248.4 billion in 2025/26 due to increases in the number of recipients and the value of the grants.
The first social grant increments came into effect in April and will continue at the beginning of October. They are outlined as follows:
Here Are The Grant Increases For 2023
- Old Age grant will increase from R1,985 to R2,085
- Old Age grant (above 75 years old) and War Veterans grant will increase from R2,005 to R2,105
- Disability Grant will increase from R1,990 to R2,085
- Care Dependency grant will increase form R1,985 to R2,085,
- Foster Care grant will increase from R1,070 to R1,125
- Child Support Grant will increase from from R480 to R505
Anticipating Increased Beneficiaries and Spending
Minister Godongwana highlighted that the expansion of the grant program is necessary due to the projected rise in beneficiaries.
The government anticipates that the number of grant beneficiaries will increase from 18.6 million in March 2023 to 19.6 million by March 2026. This projected growth will necessitate an additional expenditure of over R10 billion on grants in 2025 alone.
The calls for increased investment in social grants reflect a collective effort to provide a safety net for vulnerable populations and stimulate economic recovery.
