Finance Minister, Tito Mboweni has confirmed that social grants will increase by below inflation rates of between 1.0 and 3.4 percent.
This increase will take effect from April 2021. Along with this, the extension of the temporary R350 grant will come to an end, decreasing grant expenditure by 2.2% over the next three years.
“Total social grants are reduced by R5.8 billion in 2021/22, R10.7 billion in 2022/23 and R19.5 billion in 2023/24. All grant values will increase by less than inflation. The number of beneficiaries is expected to increase by about 300 000 people over the period,” reads the 2021 Budget Review report.
The increases for the grants will be as follows:
- Old age and disability grants will increase from R1 860 to R1 890 (1.6% increase)
- Persons over the age of 75 and war veterans will both increase from R1 880 to R1 910 (1.6% increase)
- Foster care will increase from R1 040 to R1 050 (1.0% increase)
- Care dependency will increase from R1 860 to R1 890
- Child support will increase from R445 to R460 from the current (3.4% increase).
Government expects the number of social grant beneficiaries to reach 9 million by 2022/2023.
Provincial departments of social development have also been allocated R2.3 billion over the Medium-Term Expenditure Framework (MTEF).
In the Budget Review, the Treasury said this includes an amount of R1.2 billion to employ social workers, as well as R603.3 million for social programmes to tackle the social effects of gender-based violence, HIV and substance abuse.
“Provinces will also receive R3.5 billion from the Department of Social Development through the early childhood development grant to improve access to quality early childhood development services,” reads the report.
Government has also set aside R678.3 million for the rollout of free sanitary products for learners who come from low income households.