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Pension hike as food costs bite

Oct 21 2008 15:31

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Cape Town - Old age pensions and other grants are to rise by an unexpected R20 a month as part of the government's bid to protect poor people against soaring food prices, Finance Minister Trevor Manuel announced on Tuesday.

Introducing the adjustments budget in the National Assembly, he said the government was setting aside R11bn over the next three years to deal with the short and longer-term implications of the price increases.

Government had taken "several steps" this year to mitigate the impact.

"Several of these programmes will continue over the medium term, and increased agricultural support should enhance our efforts to ensure food security for all," he said.

"Amongst the short term interventions introduced, government is raising the value of the old age grant, child support grant, disability grant and care dependency grant by R20 each this month so that grant beneficiaries don't have to wait until April to see the buying power of their grants protected."

Extra resources had also gone into school feeding programmes and for agricultural starter packs for poor rural households.

Global food prices soared 40% between 2006 and 2007, according to the United Nations, and they have continued to rocket this year.

The SA Human Rights Commission has reported that 30% of South Africans, or 14 million people, do not have access to sufficient healthy food.

In the main Budget in February this year, Manuel announced social grant increases that "take into account the disproportionate impact of price increases on the poor".

Disability and old age grants increased by R70 a month, to R940, in April, while the child support grant rose by R20, in two staggered hikes, to R220 a month.

Just over 12 million South Africans draw grants, and roughly 20% of South Africans live on less than R250 a month.

According to the medium term budget policy statement that Manuel tabled along with Tuesday's adjustments budget, support for emerging farmers will be stepped up in coming years in a bid to ensure food security.

This applied particularly to the rural poor and their ability to get enough and affordable food.

An amount of R969m was being added to the existing allocation to the comprehensive agricultural support programme over the next three years.

- Sapa

 
 
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