In a landmark announcement by the Minister of Finance, South Africa is poised to witness a pivotal increase in social grants come 2024, heralding a significant move towards bolstering the welfare of the nation’s most vulnerable demographics amidst prevailing economic challenges.
This adjustment in social grants underscores the government’s commitment to enhancing social security, aiming to mitigate the impacts of inflation and the cost-of-living crisis that has disproportionately affected the impoverished and marginalized sectors of society.
SASSA Social Grants Increase Rundown
Old Age, War Veterans, Disability, and Care Dependency Grants
- Current Amount: As of the last update, the Old Age, Disability, and Care Dependency Grants stand at approximately R1,980 per month. The War Veterans Grant is slightly higher, reflecting the additional support provided to those who have served.
- New Amount After Increase: With the R100 increase, beneficiaries of these grants will receive R2,080 per month by October 2024. The increase will be phased in, with an initial R90 bump in April, bringing the grant to R2,070, followed by an additional R10 increase in October.
Foster Care Grant
- Current Amount: The Foster Care Grant is currently set at about R1,050 per month, offering financial support to foster parents caring for children in need.
- New Amount After Increase: Following the R50 increase, the Foster Care Grant will rise to R1,100 per month. This adjustment will directly benefit foster care providers, aiding in the care and support of foster children.
Child Support Grant
- Current Amount: The Child Support Grant, aimed at assisting parents and guardians with the costs of children’s basic needs, is currently R480 per month.
- New Amount After Increase: With the R20 increase, the grant will amount to R500 per month. This enhancement is designed to help alleviate the financial burden on families, ensuring children’s needs are met more effectively.
Beneficiary Statistics by Social Grant Category
The South African Social Security Agency (SASSA) administers several social grants, each designed to support different segments of the population in need. Here’s a rough overview of the estimated number of beneficiaries for each category:
- Old Age Grant: This grant is intended for South African citizens, permanent residents, and refugees 60 years and older who meet the income and asset criteria. As of the latest data, there are approximately 3.7 million beneficiaries of the Old Age Grant.
- Disability Grant: Aimed at individuals aged between 18 and 59 who are unable to work due to a physical or mental disability. The Disability Grant serves around 1.1 million beneficiaries.
- War Veterans Grant: Although the number of war veterans is dwindling, this grant supports those who served in World War II or the Korean War and meet specific criteria. The beneficiaries of this grant are relatively few, numbering in the hundreds.
- Care Dependency Grant: This grant is for caregivers of children with severe disabilities under the age of 18. There are about 150,000 beneficiaries of the Care Dependency Grant.
- Foster Child Grant: Designed to support foster parents in providing for the basic needs of foster children. Approximately 400,000 children benefit from the Foster Child Grant.
- Child Support Grant: The most widely accessed grant, designed to assist parents and guardians with the costs of the basic needs of children up to the age of 18. There are over 13 million beneficiaries of the Child Support Grant, making it the largest category.
These statistics highlight the extensive reach of South Africa’s social grant system, touching the lives of millions across various demographics. The increases announced for 2024 in the social grants are expected to further support these beneficiaries, reflecting the government’s commitment to social welfare and support for its most vulnerable citizens.
Related: Understanding SASSA Grants: Who Qualifies?
Impact of the Increases
These increases in social grants are a reflection of the government’s commitment to supporting its most vulnerable citizens. By adjusting the grant amounts, the government aims to better align with the cost of living and inflation rates, ensuring that beneficiaries can afford basic necessities. The phased approach to the increases, especially for the Old Age, War Veterans, Disability, and Care Dependency Grants, is designed to provide immediate relief while planning for additional support later in the year.
For many South Africans, these grants are a critical source of income, enabling them to cover essential expenses such as food, healthcare, and education for children. The increases are thus not only a financial adjustment but also a measure aimed at enhancing the quality of life for millions of beneficiaries across the country.
These adjustments are part of the expanded Budget 2024 review, where the National Treasury outlined that social grant expenditure – excluding the Social Relief of Distress (SRD) grant – is projected to rise from R217.1 billion in the 2023/24 financial year to R259.3 billion by the 2026/27 financial year.
Furthermore, the number of grant beneficiaries, excluding those receiving the COVID-19 SRD Grant, is expected to increase from 18.8 million in the 2023/24 period to 19.7 million by 2026/27. This projection underscores the growing need for social support among South Africans and the government’s commitment to meeting this demand.
Related: Ramaphosa Announces Plans to Enhance R350 Grant at the 2024 SONA
Continuing the SRD Grant
Looking ahead, Finance Minister Godongwana highlighted the potential continuation of the SRD grant beyond its current expiration date in March 2025. The continuation of this grant hinges on the thorough consideration of social security policy reforms and identifying a sustainable funding source. This approach signifies the government’s acknowledgment of the ongoing need for support among the populace and the importance of establishing a resilient and effective social security system.
Last year, the minister announced an allocation of R66 billion to Social Development over the medium term. This funding includes R36 billion dedicated to extending the Covid-19 social relief of distress grant until 31 March 2024, alongside R30 billion allocated for inflation-linked increases to various social grants.
The SASSA Social Grants Increase announcement is a testament to the government’s dedication to supporting its citizens, particularly those in vulnerable positions. As South Africa navigates through economic uncertainties, these adjustments in social grants are a beacon of hope for many, ensuring that the nation’s social security net remains robust and responsive to the needs of its people.