To alleviate the financial strain faced by millions of South Africans grappling with the increasing cost of living, the South African Social Security Agency (Sassa) announced significant expenditure on social grants.
With nearly 19 million citizens relying on these grants to meet their basic needs, the South African government underscored its commitment to providing essential support within the constraints of the country’s fiscal health.
Sassa distributes several different permanent grants aimed at assisting financially vulnerable people living in South Africa. Permanent grants distributed by Sassa 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.
The government outlined the following expenditure on grants
- Old-age grant: R107.0 billion
- Social security funds: R89.0 billion
- Child-support grant: R85.8 billion
- Other grants: R73.4 billion
- Provincial social development: R22.0 billion
- Policy oversight and grant administration: R10.1 billion
Sassa Grant Increases
To keep pace with inflation and increase access, permanent social grants were increased:
- An increase of R100 to the old age, war veterans, disability, and care dependency grants. This amount was divided into R90 effective from April, and R10 effective from October.
- A R50 increase to the foster care grant.
- A R20 increase to the child support grant.
The Finance Minister Enoch Godongwana revealed that work was currently underway to improve the COVID-19 Social Relief of Distress Grant by April this year. The National Treasury would collaborate with the Department of Social Development to ensure that improvements in this grant were captured in the final regulations.
These improvements would be made within the current fiscal framework. For the extension of the grant beyond March 2025, social security policy reforms, together with the funding source, would be finalised.
