Earlier this week, the South African Social Security Agency (Sassa) announced that no cash grant payments will be made at Post Office Branches in the future. This came as a surprise to millions of grant beneficiaries who rely on the convenience of collecting their grant payment at a post office branch close to their homes.
Sassa distributes 19 million permanent grants which include 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. Many of these grant beneficiaries choose to collect cash at a Post Office branch due to its accessibility in rural areas.
In a joint statement issued with Postbank, Sassa outlined plans to gradually eliminate all physical cash payment points (CPPs), including the withdrawal of grants in cash from Post Offices. This process is scheduled to kick off in January next year, concluding by 31 March 2024.
The transition will be implemented sensibly to ensure that no one is left out. The aim is to ensure continuity in the payments for everyone and that every person is paid their grant in the most efficient, safe, secure, reliable and convenient manner.
Why Sassa Made This Decision
Sassa spokesperson Paseka Letsatsi says it does not make economic sense to continue with cash grant payments. They point to high administrative costs associated with distributing lower-value grants like the child support grant.
As an organisation, we have then taken a decision that it doesn't make economic sense for us to continue to use cash pay points
Beneficiaries of the child support grant receive a monthly grant payment of R510. Letsatsi explains that it costs Sassa around R750 to pay for the administration of a child support grant.
The R500 will be of a child support the R750 it goes to the administration in a sense that we have to pay for the shelter, we have to make sure that we pay for security, we have to make sure that we pay Municipal services and so so it doesn't make sense
Letsatsi assured grant beneficiaries that pay points will not close without viable alternatives. Sassa will continue engaging with beneficiaries and promoting transactions at various outlets, including Shoprite, Checkers, and Boxer while reinforcing the functionality of gold cards even after the transition.
They also said the transport large amounts of cash for grant payments is a significant safety concern. They described it as is a breeding ground for cash-in-transit heists.
