Budget 2023
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Social safety nets get more money

Cape Town - Finance Minister Pravin Gordhan has allocated R147bn – R15bn more than last year -  to social protection, saying that it is a practical expression of a caring society.

About 70% of this budget vote is on transfers to households in the form of social grants.

There are now almost 15 million people receiving social grants in South Africa – which is more than a quarter of the population and over six times the number of grant beneficiaries in 1998. Social assistance will contribute R97.6bn to household income in 2011/12.

Gordhan told MPs: “This practical expression of a caring society amounts to R147bn in 2011/12, rising to R172bn in 2013/14.

"Income support to poor households has been extended over the past decade, mainly through the phased extension of the child support grant to older children.”  

Social grant increases will come into effect from April as follows:

• The monthly state old age grant and the disability and care dependency grants will rise by R60 a month to R1 140; 
• For pensioners over the age of 75, the old age grant will rise by a further R20 a month to R1 160;
• Foster care grants will increase by R30 to R740; and
• The child support grant will increase from R250 to R260 in April and to R270 in October.

While government warns it can’t afford to pay people grants if they do not qualify for them, the 2011 budget also talks about proposed revisions to the means test thresholds, which will benefit households with modest incomes that reduce their grant entitlements.
 
Gordhan also revealed that proposals are now well advanced for “alignment and consolidation” of  all social security offerings.

This will be complemented by the introduction of a mandatory basic retirement savings plan.
 
“Over R9bn a year is currently spent in administering our fragmented social security system. An integrated and better coordinated social security system will offer better protection to vulnerable households at a lower administrative cost,” said Gordhan. 
 
 - Fin24
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