Finance Minister Enoch Godongwana announced in his budget speech on Wednesday that the old age grant would be increased by R100.
For pensioners under the age of 75, the grant will increase by R90 in April from R2,090 to R2,180, and by a further R10 to R2,190 from October 2024.
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This year's grants are as follows:
Type of grant | value | Increase (2024) | Beneficiaries (as of December 2023) |
nursing home | Current: R1,130
April 2024: R1,180 |
R50 (4.4%) | 222,317 |
child support | Current: R510
April 2024: R530 |
R20 (3.9%) | 13,067,314 |
Elderly (over 75 years old) | Current: R2,110
April 2024: R2,200 October 2024: R2,210 |
R100 (4.7%) | 3,999,326 |
Elderly (under 75 years old) | Current: R2,090
April 2024: R2,180 October 2024: R2,190 |
R100 (4.8%) | |
hindrance | 1,065,838 | ||
nursing care addiction | 161,826 | ||
veterans | Current: R2,110
April 2024: R2,200 October 2024: R2,210 |
R100 (4.7%) | Ten |
The minister said the increase was to keep pace with inflation.
However, this rate of increase is lower than the current inflation rate of 5.3% from January 2023 to January 2024. According to the latest Food Inflation Report for December 2023 by the Food and Agricultural Policy Bureau, global inflation has increased by 8.5% year-on-year. Food and non-alcoholic beverage prices.
“We are sensitive to the rising cost of living for the approximately 19 million South Africans who rely on these subsidies to make a living,” the minister said.
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The government has completed a major review of social security policy, with the aim of ensuring reforms can be implemented with the government's “limited financial resources”, according to national spending estimates set out in the budget speech. There is.
read:
47% of South Africans rely on social grants.
How has the social grant system changed since 1994?
The Social Security White Paper is expected to be compiled within the next three years.
The COVID-19 Social Distress Relief Grant will pay R350 a month to around 8 million people and will continue until the end of 2024-5. A subsequent budget review would see the social assistance budget reduced to R248 billion.
“With this termination, the total number of subsidy beneficiaries is expected to fall from an estimated 27.8 million in 2023/24 to 19.7 million in 2026/27.”
“Furthermore, following the decision to extend the COVID-19 Social Distress Relief Grant until the end of 2024/25, the Ministry has set out policy options on subsidy replacement, taking into account the need to strengthen employment channels and sustainable means of employment. “Means of livelihood'' will be finalized,'' the budget review said.
Read: Money and aging: The positive effects of cash grants
Meanwhile, the Minister said provision had been made to prioritize job creation initiatives, with R61 billion allocated to the medium-term jobs program and R7 billion allocated to the Presidential Jobs Initiative.
© 2024 GroundUp. This article was originally published here.