During the 2023 State Of The Nation, President Cyril Ramaphosa announced that all existing social grants will be increased. The increases to social grants will form part of governments plans to protect poor and vulnerable individuals from the rising cost of living and inflation.
Civil Society Group Black Sash says they are waiting in anticipation to find out what the increases to social grants will be. They are calling for grants to be increased in line with the inflation rate.
The president further announced that the government will continue with its implementation of the Social Relief of Distress (SRD) grant. The grant currently supports more than 7 million unemployed people between the ages of 18 and 59-years-old.
While the group welcomed Ramaphosa’s acknowledgement that grants serve as a lifeline for millions of vulnerable people. They argue that no grant must be under the food poverty line.
Currently, recipients of the SRD grant receive R350 monthly while beneficiaries of the Child Support Grant receive R480. If the president is to heed the calls made by Black Sash, these two grants will be increased to the food poverty line that currently stands at R624.
The question remains, will those living in South Africa between the ages of 18 and 59 receive a permanent grant in 2023 at an amount above the Food Poverty Line of R624?
Previously, Black Sash had called for the SRD grant to be made a permanent relief measure. The group are hoping that the government considers the fiscus from a human rights perspective rather than affordability when future plans regarding the grant are revealed.
“We wait in anticipation to hear what that increase will be. Black Sash demands that the increase in social grants must be at least at the inflation rate, with no grant being below the Food Poverty Line which means Child Support Grant and the Social Relief of Distress grant must be at least R624,” declared Black Sash.
While the group welcomed the news that grants will be increased and the SRD grant will continue to be implemented, they argue that Ramaphosa's words during the SONA speech indicated that government procrastinated in moving forward and that little commitments have been made that will immediately impact the lives of the poor and marginalised.
President Ramaphosa also announced that work is underway to develop a mechanism for targeted basic income support which is targeted at supporting the most vulnerable. The president cautioned that the basic income support will be planned considering the government's fiscal constraints.
Black Sash argues that this statement made by the president regarding basic income support fails to make a firm commitment as to how and when the policy framework will be developed.
The group questioned the government's commitment to developing the framework as they previously acknowledged that a Basic Income Support is a solution to address the economic crisis and at the same time stimulate the local economy.
Plans regarding increases to existing social grants and the continued implementation of the SRD grant will be revealed during the 2023 Budget Speech. The Budget speech will be delivered on Wednesday 22 February 2023 by Finance Minister Enoch Godongwana.
