Latest news with #TracyAdams
IOL News
6 days ago
- Business
- IOL News
Straining to support: South Africa's social grants are vital but can the state keep up?
Economic challenges and the future of social grants in South Africa Image: Tracy Adams Social relief of distress, or social grants, is a key part of South Africa's welfare system; however, recent data indicates that its role is increasingly strained, raising concerns about sustainability, economic growth, and social cohesion. According to the latest General Household Survey released by Statistics South Africa (Stats SA), an unprecedented 40.1% of the population - approximately 25.4 million individuals-now rely on social grants. This marks a significant increase from previous years and reflects a steady rise in dependence, particularly amid persistent unemployment and economic challenges. Risenga Maluleke, Statistician-General of South Africa, noted that the country's official unemployment rate hit 32.9% in the first quarter of 2025. Such figures highlight the stark depth of economic hardship many face, with social grants serving as a vital safety net without sufficient employment opportunities. Paul Maritz, Director at Free SA, a foundation advocating for rights, equality, and systemic reform, highlighted the gravity of this dependence. 'The growing reliance on social grants - now affecting over 25 million people — highlights deep socio-economic challenges and the urgent need for structural change,' he explained. 'Our proposed Power to the People Amendment aims to address these issues by reducing waste, devolving policing, and breaking monopolies that hinder economic opportunity.' Maritz warned that 'sustained dependence on grants without parallel investment in job creation risks entrenching a welfare economy that stifles individual potential and hampers long-term growth.' He warned that if current trends persist, South Africa's economy could face stagnation, shrinking tax bases, and rising inequality-all threatening social stability. The fiscal burden of social grants is significant. In 2011, the South African government allocated around 3.5% of GDP to social assistance, which has grown over the years. The Centre for Global Development estimated that expenditure on social grants, particularly the Child Support Grant (CSG), reached nearly ZAR31 billion (approximately US$4.2 billion) in 2010-11. Instead, they argued that they serve as a necessary-but insufficient-measure to support those unable to provide for themselves. "While grants have helped improve food security, children's well-being, and school attendance,' Maritz warned that they are not a long-term solution to poverty. 'Overdependence can distort labor markets. When social assistance becomes a substitute for employment, it can disincentivize active job-seeking and skills development. 'Countries with more developed economies often implement prerequisites or conditions tied to grants, encouraging recipients to pursue upskilling or community participation.' He added that the current approach risks creating a stagnating workforce and reducing overall productivity in South Africa, thereby hindering economic growth and perpetuating inequality. 'Ironically, the system designed to reduce inequality may inadvertently reinforce it if not paired with empowerment strategies. 'Without access to meaningful employment, quality education, and secure communities, social mobility remains elusive for many beneficiaries.' Furthermore, dependence on grants without addressing the root causes-unemployment, corruption, and inefficient public services-could erode trust in institutions. Maritz warned that 'a society where millions feel trapped and unheard is inherently unstable,' stressing the need for comprehensive reforms.
IOL News
6 days ago
- Business
- IOL News
Welfare State? Concerns grow over South Africa's unsustainable rising dependence on social grants
Economic challenges and the future of social grants in South Africa Image: Tracy Adams Social relief of distress, or social grants, is a key part of South Africa's welfare system; however, recent data indicates that its role is increasingly strained, raising concerns about sustainability, economic growth, and social cohesion. According to the latest General Household Survey released by Statistics South Africa (Stats SA), an unprecedented 40.1% of the population - approximately 25.4 million individuals-now rely on social grants. This marks a significant increase from previous years and reflects a steady rise in dependence, particularly amid persistent unemployment and economic challenges. Risenga Maluleke, Statistician-General of South Africa, noted that the country's official unemployment rate hit 32.9% in the first quarter of 2025. Such figures highlight the stark depth of economic hardship many face, with social grants serving as a vital safety net without sufficient employment opportunities. Paul Maritz, Director at Free SA, a foundation advocating for rights, equality, and systemic reform, highlighted the gravity of this dependence. 'The growing reliance on social grants - now affecting over 25 million people — highlights deep socio-economic challenges and the urgent need for structural change,' he explained. 'Our proposed Power to the People Amendment aims to address these issues by reducing waste, devolving policing, and breaking monopolies that hinder economic opportunity.' Maritz warned that 'sustained dependence on grants without parallel investment in job creation risks entrenching a welfare economy that stifles individual potential and hampers long-term growth.' He warned that if current trends persist, South Africa's economy could face stagnation, shrinking tax bases, and rising inequality-all threatening social stability. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The fiscal burden of social grants is significant. In 2011, the South African government allocated around 3.5% of GDP to social assistance, which has grown over the years. The Centre for Global Development estimated that expenditure on social grants, particularly the Child Support Grant (CSG), reached nearly ZAR31 billion (approximately US$4.2 billion) in 2010-11. Instead, they argued that they serve as a necessary-but insufficient-measure to support those unable to provide for themselves. "While grants have helped improve food security, children's well-being, and school attendance,' Maritz warned that they are not a long-term solution to poverty. 'Overdependence can distort labor markets. When social assistance becomes a substitute for employment, it can disincentivize active job-seeking and skills development. 'Countries with more developed economies often implement prerequisites or conditions tied to grants, encouraging recipients to pursue upskilling or community participation.' He added that the current approach risks creating a stagnating workforce and reducing overall productivity in South Africa, thereby hindering economic growth and perpetuating inequality. 'Ironically, the system designed to reduce inequality may inadvertently reinforce it if not paired with empowerment strategies. 'Without access to meaningful employment, quality education, and secure communities, social mobility remains elusive for many beneficiaries.' Furthermore, dependence on grants without addressing the root causes-unemployment, corruption, and inefficient public services-could erode trust in institutions. Maritz warned that 'a society where millions feel trapped and unheard is inherently unstable,' stressing the need for comprehensive reforms.
IOL News
30-04-2025
- General
- IOL News
SASSA urges SRD grant beneficiaries to complete identity verification to avoid payment delays
SASSA has called on Social Relief of Distress grant beneficiaries to urgently complete their identity verification Image: Tracy Adams The South African Social Security Agency (SASSA) has called on Social Relief of Distress (SRD) grant beneficiaries to urgently complete their identity verification to prevent delays or disruptions in payment. This comes after the agency also introduced a mandatory biometric enrolment and identity verification process designed to enhance security, particularly for beneficiaries using alternative forms of identification instead of the standard 13-digit South African ID number. The SRD grant was first launched by the government in 2020 as an emergency measure to alleviate the financial strain caused by the COVID-19 pandemic. In a statement issued to the media last week, SASSA Mpumalanga spokesperson Senzeni Ngubeni said all beneficiaries must go through the verification process to avoid delays in receiving their grant. 'There is no shortcut. All beneficiaries who are required to go through this process must do so to avoid delays and the disappointment of not receiving the grant,' Ngubeni said. Ngubeni explained that beneficiaries who receive an 'identity verification' status message may do so due to suspected fraudulent activity or discrepancies in their information, and called on them to verify their details either at their local SASSA office or by logging into the website.
The Guardian
28-04-2025
- Health
- The Guardian
Tracy is about to begin chemo and she's also getting evicted. Welcome to Australia's housing crisis
In three weeks Tracy Adams starts chemotherapy for bowel cancer. She will also be evicted from her home. The 63-year-old has been living in her Queensland rental for five years and, despite her landlords knowing she has just been diagnosed with cancer, they have told her to go. 'A few weeks ago they gave me basically a month's notice to leave because they said they think they'll have a better chance of selling the place if it's vacant,' Adams says. 'At the same time, I also got a diagnosis of bowel cancer. I have to be out of here by the 14th of May, which is also the first week I start chemo and radiation. 'I will be homeless. At the moment I am trying to sell everything I own.' The Council on the Ageing, a peak charity representing Australians aged over 50, is calling on major parties to commit to more affordable housing for elderly renters – particularly women, who are disproportionately experiencing homelessness. Advocates warn the number of elderly women living in poverty will keep rising dramatically unless the federal government helps more. Adams lives in Maleny, Queensland. She has a PhD and trained as an environmental scientist. But with a chronic illness, she can only work a few days a week. Complicating things further, she split from her partner and became a single parent to a child with high needs. Sign up for the Afternoon Update: Election 2025 email newsletter 'I've mostly been only able to work part-time, so barely have any savings,' she says. Adams is on the disability support pension and works one day a week. She has $30,000 in super – but both these factors mean she has been rejected from social housing, despite applying twice. 'I've been turned away, [with them] saying I'm not disabled enough because their wait lists are so big,' she says. She pays $300 a week in rent – 60% of her income. There are few rentals in the area. Desperate, her friend launched an online fundraiser to buy her a tent or, ideally a camper van to live in. 'I've noticed that the people who are homeless, who have camper vans, they do a hell of a lot better than the ones who are just in an ordinary car or in a tent,' she says. Last year research from the University of New South Wales found a strong spike in families, people with disabilities, people in work and older women presenting at homelessness services. 'Our recent analysis confirms that homelessness involving older women is, indeed, rising much faster than homelessness across the wider population,' says Prof Hal Pawson, an expert in housing policy at UNSW. Pawson says older men fare even worse, based on growth rate data. Of the 280,000 clients that specialist homelessness services agencies helped in 2023–24, 60% (167,000) were women. Of that group, 15,600 (9.3%) were women aged 55 or older – slightly more than the 13,900 men the same age. Sign up to Afternoon Update: Election 2025 Our Australian afternoon update breaks down the key election campaign stories of the day, telling you what's happening and why it matters after newsletter promotion 'The broader finding is that, while they continue to represent a relatively small proportion of all homeless people, the risk of homelessness is rising faster for older Australians, both men and women, than for others,' Pawson says. 'That may be partly due to falling home ownership rates among people entering retirement – a trend which is only just beginning, but is expected to continue over coming decades.' Fiona York, the executive officer of Housing for the Aged Action Group, says homeless older women, or those in insecure housing, are the result of 'lifetime systemic inequality'. 'Women who have been in lower-paid jobs, women who have been in and out of the workforce due to family responsibilities, they've got less superannuation, less savings,' York says. 'Women couldn't get a home loan without a man to countersign until the 80s. 'It's all of those bigger picture issues that mean that when it comes to them being in their 70s and 80s, they're all of a sudden showing up in these statistics.' The Council on the Ageing chief executive, Patricia Sparrow, is disappointed the major parties have rarely addressed the rental crisis during this election campaign. 'There's been a lot about housing, we haven't seen much action for renters,' she says. 'Over one in five older Australians are renting, and for those renting on a fixed income like the pension, the soaring cost of rent is pushing them into poverty.' The federal government needs to create more affordable housing tailored to different cohorts' needs and to increase rent assistance by 60%, she argues. Adams is standing on the edge of the housing precipice and she knows she is not the only one. 'People tend to think that you get into homelessness because we've got addiction problems or major mental health problems, and that's just not the case for most older women.' She wants to see the government change tax settings that encourage house prices to increase, including negative gearing and cuts to capital gains tax, which according to the Australia Institute cost the budget about $20bn a year, more than twice the $8.4bn state and territory governments spent on public and community housing in 2022-23. 'That money needs to all go into the building [of homes],' she says.
