Latest news with #socialgrants
Russia Today
6 days ago
- Business
- Russia Today
Over 25 million South Africans rely on social grants
The latest General Household Survey (GHS) released by Statistics South Africa has revealed that a staggering 25.4 million South Africans, or 40.1% of the population rely on social grants for survival. The GHS shows that 50.4% of all households in the country receive at least one form of social grant, making grants the second most important source of income after salaries. In some of South Africa's poorest provinces, more households depend on grants than on salaries. 'A larger percentage of households received grants compared to salaries as a source of income in five provinces: Eastern Cape (65.6% versus 49.0%), Free State (64.2% versus 54.6%), Limpopo (62.9% versus 50.4%), Northern Cape (64.0% versus 60.5%) and Mpumalanga (59.1% versus 56.8%),' Stats SA reported. In response to the rising numbers, Evashnee Naidoo from Black Sash said: 'The increase in poverty, unemployment and inequality increases month-on-month in South Africa due to poor economic growth and limited to no employment opportunities, particularly for those aged 18–59. As we know, the highest rate of unemployment is for the age group 18–35, where the government has also failed to provide an adequate social security safety net to protect and cushion individuals adequately from birth to death.' With the government adopting austerity budgeting, Naidoo warned that 'spending on social spending is decreasing at an alarming rate. Black Sash calls on the government to end austerity budgeting and rather prioritise social spending so that it firms people living in South Africa and allows economic growth to flourish in communities,' she said. Naidoo said access to grants also remained an issue. 'Access to pay channels, as well as government institutions for recourse are particular challenges in the administration of grants, particularly in peri-urban and rural areas, where beneficiaries are shunted from pillar to post.' Black Sash said it would continue to call for permanent Basic Income Support for those aged 18–59 years. 'This would ensure dignity to our people and provide a secured source of income to individuals and households,' Naidoo published by IOL
The Herald
27-05-2025
- Business
- The Herald
Double-dipping alert: Sassa delays grants for 210,000 beneficiaries
The SA Social Security Agency (Sassa), in collaboration with registered credit bureaus, says it will delay June payments to more than 210,000 social grant beneficiaries who appear to be receiving income that was not truthfully disclosed to the agency. Sassa spokesperson Paseka Letsatsi spokesperson said: "These individuals are required to present themselves at their nearest Sassa office for a grant review within 30 days from the notice date, in line with regulation 30 of the Social Assistance Act. "Beneficiaries who fail to comply with the process risk having their grants suspended. Continued non-compliance may lead to the permanent lapsing of their grants." According to the Social Assistance Act and its regulations, applicants are legally obligated to declare all sources of income when applying and to inform Sassa of any changes in their financial situation. Letsatsi said: "Failure to comply with the requirements constitutes a violation of the act and may result in corrective action."
News24
27-05-2025
- Business
- News24
Second income trouble: SASSA identifies 210 000 possible ‘double-dippers'
SASSA has delayed June social grant payments for 210 000 beneficiaries after discovering they may have not disclosed additional income. Affected beneficiaries must present themselves to SASSA offices for a review within 30 days to avoid suspension or permanent cancellation of their grants. SASSA emphasised its zero-tolerance policy for fraud and urged all beneficiaries to update income information and report undeclared accounts. The South African Social Security Agency (SASSA) has discovered that 210 000 beneficiaries allegedly receive social grants despite getting a second income. This came to light after SASSA and registered credit bureaus investigated recipients who may not have truthfully disclosed their extra income. Speaking to News24 on Tuesday, SASSA spokesperson Paseka Letsatsi said the suspected 'double-dippers' would have their grants frozen, and SASSA would ask them to come in and present 'necessary documents'. He said that if they are able to do so, their accounts will be unfrozen; 'if they do not come forward, their grants will be permanently stopped'. READ | 113 Sassa officials implicated in corruption over 3 years According to Letsatsi, the Social Assistance Act and its regulations state that beneficiaries are legally required to 'fully disclose all sources of income during their initial application'. He said beneficiaries were also obliged to inform SASSA of any changes in their financial situation after their application was approved. 'Failure to comply with these requirements constitutes a violation of the Act and may result in corrective action,' he said. In a statement, Letsatsi said that the grant payments to the 'affected beneficiaries' will be delayed in the June payment cycle. The recipients in question have been asked to present themselves to their local SASSA offices for a grant review within 30 days of Tuesday. SASSA said it hopes the initiative will address potential errors in the social security system. It stated: A beneficiary may have qualified for a grant at the time of application, but improved material conditions over time may render them ineligible. It further encouraged beneficiaries not identified to disclose all extra income sources and report any additional bank accounts they may have not declared. It also asked that beneficiaries who have not yet done so, to replace their old green ID books with the smart ID card 'due to the increased risk of fraud associated with the older ID format'. 'SASSA reiterates its zero-tolerance stance on fraud, and should there be evidence of any officials colluding with beneficiaries to defraud the system, immediate disciplinary and legal action will be taken to safeguard the integrity of the Agency and prevent financial losses,' Letsatsi concluded.
Zawya
23-05-2025
- Business
- Zawya
South Africa's Budget 3.0: Social grant increases remain in place
Increases to all social grants, barring the Social Relief of Distress (SRD) grant, will not be affected by the re-tabled budget. This according to National Treasury's 2025 Budget Overview released on Wednesday. The number of social grant beneficiaries – excluding those receiving the SRD grant – is expected to rise to 19.3 million people by March 2028. The grant increases for 2025/26 are as follows: - Old age grant will increase from R2185 to R2315 - War veterans grant will increase from R2205 to R2335 - Disability grant will go up from R2185 to R2315 - Foster care grant rises from R1180 to R1250 - Care dependency grant will increase from R2185 to R2315 - Child support grant will go up from R530 to R560 - The grant-in-aid will increase from R530 to R560 'The increase in the social grants budget of R1.6bn in 2025/26 remains. The temporary Covid-19 Social Relief of Distress grant will be extended until 31 March 2026, with R35.2bn allocated to maintain the current R370 per month per beneficiary, including administration costs,' National Treasury said. While delivering the Budget Speech in Parliament on Wednesday, Finance Minister Enoch Godongwana said government is 'actively exploring various options to better integrate' the SRD grant with employment opportunities. 'This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes. 'Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,' Godongwana said. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Mail & Guardian
21-05-2025
- Business
- Mail & Guardian
Godongwana trims spending, lowers growth forecast
Finance Minister Enoch Godongwana. In the new 2025 budget tabled on Wednesday, Finance Minister Enoch Godongwana trimmed additional spending allocations for front line services and social grants made in March to mitigate the revenue shortfall created by his about-turn on Proposed additional spending over the medium-term has been reduced from R232.6 billion to R180.1 billion, the minister said, while the country's gross borrowing requirement for the year has increased from R5.82 billion in March to R5.88 billion. Although the departments of health, education, home affairs and defence will still see their budgets grow, the increases will be smaller. Grant increases that had been designed to shield recipients from the effect of VAT increases will now fall away. So too will plans to give more money to disaster management services, and while the Passenger Rail Agency of South Africa had been due to receive an additional R19.2 billion over the medium term, this sum has been reduced to R12.3 billion. Godongwana also revised his growth forecast downwards, citing greater domestic risks, an expected downturn in global trade growth amid tariff instability and slower expansion prospects in both advanced and developing economies, dampened by the weakened outlook in the United States. 'South Africa's real GDP growth is now forecast to be 1.4% in 2025, compared with 1.9% projected in March 2025,' the finance minister said. He said he expected growth to increase modestly to 1.6% in 2026 and 1.8% in 2027. Demand from South Africa's key trading partners was expected to grow by only 2.8% in the year, while heightened geopolitical risk has brought export commodity price assumption down to 5.4%. Godongwana said these headwinds were 'a vivid reminder that we must urgently turn the tide on our economic prospects and get our fiscal affairs in order'. He had earlier this month dismissed suggestions that his unprecedented political difficulty in getting the annual budget passed would deter investors, saying sentiment would be informed by the treasury's commitment to macroeconomic stability, On Wednesday, he said the main message in his budget was that fiscal consolidation remained on course, with the deficit expected to narrow from 4.8% of GDP in 2025-26 to 3.4% in 2027-28. He added that S&P Global's decision days ago to put South Africa's credit rating on a positive outlook 'amid this mess' was testament to the credibility of the treasury. Plans to stabilise debt as a percentage of gross domestic product in the current year remain on track, but at 77.4% of GDP compared with the 76.2% predicted in March, as a result of weaker growth forecasts. Godongwana said this was 'mainly due to lower nominal GDP'. The director-general of the treasury, Duncan Pieterse, noted that it was below the sum projected last year. Debt service costs are expected to peak at 21.9% of main budget revenue.. At a media briefing shortly before he tabled the budget, Godongwana was asked whether he was losing the battle to rein in the debt to GDP ratio. He replied that he had played devil's advocate with his treasury colleagues and asked whether one could say the goal posts had been shifted. But the battle was also a political one, he said, and on that front he was confident that he was winning because an overwhelming majority of his cabinet colleagues now agreed that 'we have a debt problem' and wanted it to be addressed. Wednesday's budget is Godongwana's third attempt, after two earlier versions were undone by political dissent over his decision to raise VAT, initially by two percentage points immediately. The minister later trimmed that to one percentage point, staggered over two years, but ultimately That revised increase, plus a decision not to adjust personal income tax brackets for inflation, had been due to generate R28 billion in 2025-26 and R14.5 billion in 2026-27 The latest version includes no direct tax increases, as the minister promised in late April, but the treasury again opted not to adjust personal income tax brackets, and warned of tax increases in the new year. Godongwana said he would propose additional tax measures to raise R20 billion in tax revenue next year. But he also suggested these could be avoided, provided the state was able to effect savings of 'tens of billions of rands' by implementing potential cuts identified in successive spending reviews or the performance of the South African Revenue Service (Sars) improved dramatically. 'If government achieves significant savings from implementing the recommendations of these reviews, it may mitigate the need for additional tax measures in the 2026 budget.' The treasury noted that Sars collected R95 billion in debt in the past financial year. The additional R7.5 billion it was allocated over the medium-term in the March budget — this figure has unchanged — is expected to help boost debt collection by R30 billion a year. 'The performance of Sars will be monitored by assessing the charge in the amount of cash collected from debt, which will be published monthly. If successful, the R20 billion in tax increases to be proposed in the 2026 budget will be reconsidered.' The revenue collection forecast for the medium is now R61.9 billion less than the March estimate, as the weaker economic outlook was likely to mean less growth in key tax bases. To help to compensate for the revenue shortfall created by the withdrawal of the VAT increase, the treasury is raising the fuel levy for the first time in four years. From 4 June, the levy on petrol and diesel will be R4.01 per litre and R3.85 respectively. This increase, and personal income tax bracket creep, will account for R18 billion in tax revenue in the current year.
