The Democratic Alliance (DA) has raised concerns about recent changes in the distribution of social grants by the South African Social Security Agency (Sassa). Sassa provides permanent grants to over 18 million people, including the Older Persons pension grant, Disability grant, War Veterans grant, Care Dependency grant, Foster Child grant, Child Support grant, Child Support grant Top-Up and Grant-in-aid.
The DA is calling on Social Development Minister Sisisi Tolashe and relevant stakeholders to urgently address challenges faced by beneficiaries, especially older persons.
Changes in Sassa Grant Payment Policy
In 2023, Sassa and Postbank announced plans to phase out all physical cash payment points (CPPs), including cash withdrawals at Post Offices, which ceased in March 2024. This decision was driven by financial difficulties at the Post Office, which recorded a R6 billion loss over the past three years and an additional R2.2 billion loss in the 2022/2023 financial year.
As part of its business rescue plan, the Post Office will close 420 loss-making branches and retrench 6,000 employees. A government bailout of R3.8 billion is also on the table. The plan includes ending revenue streams that have "failed to produce revenue," such as (OTC) payments for Sassa grants and cash pay points (CPPs).
Impact on Beneficiaries
The DA argues that the phased withdrawal of cash distribution services by Postbank and Post Offices has caused confusion and distress among grant recipients. Many have been turned away, particularly due to the unclear transition from Sassa’s gold cards to the new Postbank black cards.
At the end of September 2024, Postbank began rolling out the new black cards, starting in Gauteng, with issuance happening at selected Boxer and Pick n Pay stores. However, this change has left many vulnerable beneficiaries uncertain about how to access their grants.
Additionally, several users of the Sassa gold card have reported issues, though it remains unclear if these challenges are related to the card transition.
Barriers to Access
The DA also highlighted that limiting card distribution to participating retailers like Pick n Pay and Boxer presents further difficulties for grant recipients, especially those in rural areas or with limited mobility. Many beneficiaries struggle to reach these stores, adding another layer of hardship.
The DA urges the government to improve communication regarding the validity of the Sassa gold cards and provide alternative solutions to ensure all grant recipients can access their payments without unnecessary barriers. They are calling on Minister Tolashe to prioritise this issue and ensure that Sassa beneficiaries receive the support they need during the transition.