The Covid-19 pandemic exacerbated economic challenges, leading to the introduction of the Social Relief of Distress (SRD) grant. Combined with existing grants, the South African Social Security Agency (Sassa) now supports nearly 28 million people.
Sassa distributes more than 18 million permanent grant payments monthly which include 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.
Budget Constraints
Sassa's budget for the 2024/25 financial year has been cut by R461 million. This has forced the agency to prioritize spending and reduce non-essential services. While the SRD grant will continue, at a reduced rate, the closure of cash pay points and over-the-counter payments has eased some financial pressures.
The apportionment of the budget entailed identifying items where the R461 million could be implemented and thus creating no space for funding new activities. In apportioning the budget, a sharp focus was placed on ensuring alignment to the Annual Performance Plan (APP) and that all the targets in the APP are funded.
Despite cost-cutting measures, Sassa faces increasing demands. The number of grant recipients has grown steadily, with KwaZulu-Natal, Gauteng, Eastern Cape, and Limpopo provinces having the highest dependency rates.
Concerns exist about the rising number of young mothers receiving the Child Support Grant.
Payment Method Shifts
Payment methods are evolving. More beneficiaries are opting for bank accounts, while the use of cards is declining. Sassa aims to improve the efficiency of SRD applications, ensuring accurate eligibility checks.
The agency's ability to meet its mandate is under strain due to budget constraints and growing beneficiary numbers. As South Africa continues to grapple with economic recovery, the welfare of millions hinges on the government's commitment to social safety nets.
