In a move that aims to alleviate the financial burden on South Africa’s most vulnerable citizens, the 2024 Budget Speech unveiled a significant increase in social grant payouts. With nearly 19 million individuals relying on these grants to make ends meet, the government has recognized the pressing need to combat the soaring cost of living and provide a much-needed lifeline.
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Breakdown of the Grant Increases
Finance Minister Enoch Godongwana, in his address, outlined the following grant increases to be implemented this year:
- A R100 increase for the old age, war veterans, disability, and care dependency grants, divided into R90 effective from April and R10 effective from October.
- A R50 increase for the foster care grant.
- A R20 increase for the child support grant.
These increments, while modest, are expected to provide some relief to the millions of South Africans who depend on these grants as their primary source of income.
Budgetary Allocations and Projected Beneficiaries
According to the expanded Budget 2024 review, social grant expenditure – excluding the Social Relief of Distress (SRD) Grant – is projected to increase from R217.1 billion in 2023/24 to R259.3 billion in 2026/27. This substantial allocation underscores the government’s commitment to supporting the most vulnerable members of society.
Furthermore, the number of grant beneficiaries, excluding those receiving the COVID-19 SRD Grant, is expected to rise from 18.8 million in 2023/24 to 19.7 million in 2026/27. This anticipated increase highlights the growing need for social assistance as economic challenges persist.
Notably, the COVID-19 Social Relief of Distress Grant, commonly referred to as the R350 grant, has been allocated R33.6 billion in 2024/25, with provisional allocations for the following two financial years. Minister Godongwana emphasized that work is currently underway to improve this grant by April 2024, with National Treasury collaborating with the Department of Social Development to ensure that improvements are captured in the final regulations.
However, the extension of the grant beyond March 2025 hinges on the finalization of social security policy reforms and the identification of a funding source.
People Also Ask
How much will the old age grant increase in 2024?
The old age, war veterans, disability, and care dependency grants will see an increase of R100, split into R90 effective from April and R10 effective from October.
What is the COVID-19 Social Relief of Distress Grant?
The COVID-19 Social Relief of Distress Grant, widely known as the R350 grant, was introduced as a temporary measure to assist individuals impacted by the pandemic. It has been allocated R33.6 billion in 2024/25, with provisional allocations for the following two years.
How many South Africans rely on social grants?
According to the 2024 Budget Speech, nearly 19 million South Africans rely on social grants to make ends meet. This number is projected to increase to 19.7 million by 2026/27, highlighting the growing need for social assistance.
What improvements are planned for the Social Relief of Distress Grant?
The government has stated that work is currently underway to improve the COVID-19 Social Relief of Distress Grant by April 2024. National Treasury and the Department of Social Development are collaborating to ensure that improvements are captured in the final regulations.
How does the government plan to fund the grant increases?
The 2024 Budget Speech outlines the budgetary allocations for social grant expenditure, which is expected to increase from R217.1 billion in 2023/24 to R259.3 billion in 2026/27. However, the extension of the COVID-19 SRD Grant beyond March 2025 depends on the finalization of social security policy reforms and the identification of a funding source.
Through these targeted increases and initiatives, the South African government aims to cushion the impact of rising living costs on its most vulnerable citizens. While the path ahead may be challenging, these measures underscore the nation’s commitment to fostering a more inclusive and equitable society.