Persons over the age of 75 and war veterans will now receive R1 880, up from R1 800. SAMSON, M. & WILLIAMS, M. 2007. Qualifying households also tended to pass on the benefits to those that were ineligible and there were multiplier effects on income and welfare in the … However, there is a wealth of literature on social grants dwelling on the positive impact of social grants in alleviating poverty in South Africa. Pretoria, 24 August 2020 – South Africa’s overall GDP is expected to decline by at … The government is giving out food parcels and has increased social grants to help people, but food prices have also increased. 16 Sep 2011. “Grants make people lazy and dependent on the government” Our client, a 42-year-old domestic worker, applied to the South Africa Social Security Agency (SASSA) as the mother, legal guardian and primary caregiver of her minor son in order to receive a child support grant on behalf of her son. The social and economic impact of South Africa’s Social Security System. The economic impact for the poor and most vulnerable is devastating. The study concluded that social grants had negative effects on the incentives of rural households to commercialise their farming activities. ii. Social grants remain the most effective form of poverty alleviation in South Africa as millions of South Africans benefit from the social grants administered by the the South African Social Security Agency (SASSA). The transfer programmes included a 6-month temporary top up for all existing social grants and a new grant—COVID-19 Social Relief of Distress—which targeted those who were unemployed and were not previously receiving other forms of government assistance (The Presidency of the Republic of South Africa 2020). Economic Policy Research Institute. The Constitutional Court has called South Africa's social assistance programme “one of the signature achievements of our constitutional democracy.”. The failure of the South African Social Security Agency (Sassa), which is responsible for the payment and administration of social grants, to act timeously has created a crisis that threatens to deliver grant recipients on a silver platter into the hands of unscrupulous financial services companies. These include child, disability and older person grants. Source: Authors’ calculations using NIDS waves 1 to 4 pooled sample (post-stratified weights). The impact of social grants has been researched by the likes of the Centre for Social Development in Africa (CSDA) at the University of Johannesburg (UJ), United Nations Children’s Fund (UNICEF) and the Department of Economics at Stellenbosch University, with results showing that they are key to helping poor households survive. Studies show that it [the CSG] improves … These include child, disability and older person grants. This has negative implications on the government’s drive to increase commercialisation levels of smallholder farmers by … Consumption inequality is very high and has increased since the end of apartheid 43 B. The right to social security 16 2.1.4. Over 13-million South Africans, 9-million of whom are children, are currently receiving social assistance benefits, says Social Development Minister Edna Molewa, adding that grants remain the most effective form of poverty alleviation. This research examines the effectiveness of social grants in South Africa, and how recipients use their grants. “The social grants are inadequate to cover basic food, energy sources and transport, as well as the additional cost of complying with hygiene protocols during the pandemic. The effects of climate change are already evident in South Africa and the wider sub-Saharan Africa region, manifesting in more droughts and more intense, but less frequent, rainfall. The Covid-19 pandemic has created a much harsher global backdrop for South Africa… evaluated the impact of the provision of social grants on household poverty and inequality, using the Income and Expenditure Survey (IES) Footnote 2 1995 and 2005/2006 data.They found that access to social grant income was not limited to the poorest income … South Africa’s social security system, a major monthly income source for over 12-million people, has been playing an increasingly important role in reducing poverty and inequality in the country since 2000, a survey by Statistics South Africa (Stats SA) finds. Tel: +27114893650. The coronavirus disease 2019 (COVID-19) has resulted in an enormous dislocation of society especially in South Africa. Report of Lund Committee on child and family support 17 2.1.6. Racial composition of South Africa’s five social classes, 2008 and 2014/15. Although commonly extended from the government, the term subsidy can relate to any type of support – for example from NGOs or as implicit subsidies. Cash grants and free basic services lift the incomes of some 3.6 million individuals above $2.50 a day (PPP). In an attempt to minimise the negative economic impacts of COVID-19 on vulnerable households the South African government allocated R50 billion in additional social assistance spending. Confirmation was received from Banking Association of South Africa (BASA) that banks are ready for the payment cycle. The cash transfer package included a temporary increase in existing grants and introduced a new ‘Covid grant’. Responsibility to distribute grant 17 2.1.5. 11 In addition, in the Taylor report (2002) prepared by experts on South Africa’s social grants, it is noted that “among the most consistent complaints in the Social Security system are those … Disability Grant. The number of people receiving social grants in South Africa has increased exponentially over the years. Executive Summary Social grants in South Africa play a critical role in reducing poverty and promoting social development. Except for the foster child grant and the grant-in-aid, social grants are “means tested”. Descriptive analysis: social grants and the labor market 23 4.1 Data 23 4.2 CSG recipients and non-recipients 24 4.3 Labor force transition matrices 31 5. Visit for more related articles at Diversity & Equality in Health and Care. Based on a framework of historical institutionalism, the heritage of a distributional regime based on institutional racism is highlighted. Versions of this large social protection system exist elsewhere in the Global South… Many negative perceptions exist about social grants and their recipients, and a study by the Centre for Social Development in Africa (CSDA) at the University of Johannesburg shows that even beneficiaries themselves believe the stories. COVID-19: South African Government Financial Assistance Measures. The Mercury: “Social Grant System can’t be sustained”, L. Daniels, August 21st, 2006. The myth that teenage girls intentionally get pregnant to access child support grants is perhaps the most pervasive and one that has been given added credibility by spurious news reports. The highest percentage of grant recipients is in the Eastern Cape, where 59% of households are receiving at least one grant. Landing a government grant is a good deal as you don't have to pay the money back. By the end of May, the South African Social Security Agency (SASSA) managed to pay out the R350, Covid-19 Social Relief of Distress grant to over 100 000 beneficiaries. As at April 16, South Africa has reported 2,506 cases of Covid-19 and 34 deaths. Literature review 11 3.1 Labor market impacts 11 3.2 Social impacts 21 4. This dissertation will systematically show that the use of social security as a poverty-alleviating tool is effective given the extent of poverty in South Africa and the limitations on resources. SAMSON, M. & WILLIAMS, M. 2007. South African economy gains formal jobs in fourth quarter. “South Africa’s social grants, along with its tax policies and social spending, have been credited with being strongly progressive, helping to raise the income of the poorest by 10 times and to reduce income inequality by a quarter. Foster Care Grant. fax: +27114892257. Foster care will increase from R1 000 to R1 080, care dependency rises from R1 780 to R1 860. Old Age Grant. However, it is the most industrialized, technologically advanced, and diversified economy on the African continent. War Veteran’s Grant. The child support grant has grown significantly, increasing from just under 22 000 beneficiaries in … Republic of South Africa. Social grants are given in a developing economy for the welfare of the small, backward and marginal groups. Sponsored Feature. South Africa is an upper-middle-income economy, one of only eight such countries in Africa. War Veteran’s Grant. South Africa's system of social grants has reduced poverty and is playing a developmental role in uplifting poor households, according to a new study. businesses in South Africa. The results support the disincentive hypothesis, demonstrating a negative association between social grants and market participation levels of smallholders. In November 2011 various news websites carried an article originally authored by the South African Press Agency (Sapa) on teenage pregnancy in Limpopo province. The Conversation Africa’s business and economy editor Sibonelo Radebe asked Jannie Rossouw to explain what’s at stake. What would be the impact if social grants weren’t paid? As a form of social protection, social grants not only ameliorate poverty and provide a safety net, they also potentially promote social transformation. Pooled sample analysis – … In 1994 there were about 4 million people receiving grants … The digitisation of South Africa’s social grant payment system was sold as promising to expand financial inclusion, but monopolisation by a single private company mutated it into a … Testing is taking place with over 80,000 individuals examined thus far. South Africa’s social grants 9 3. A team of researchers predict that the extreme poverty rate among vulnerable households will almost triple. Economic Policy Research Institute. The scope of social classes in South Africa 35 iii. Millions benefit from social grants. Save. The economy of South Africa is the third largest in Africa. Who has been hit hardest by South Africa’s lockdown? What are the weaknesses in the system? It also motivates teenage pregnancy where many teen mothers drop out of school and use grant money onalcohol and parties. The concrete impacts of such social grants are- 1) Social grants in sort of food subsidy, LPG support, cash grant which benefit the poor to come out of their poverty and help them subsist basic life necessities. Report of Lund Committee on child and family support 17 2.1.6. It is 25 days since South Africa began a nation-wide lockdown to contain the spread of the coronavirus. About 70% of outlays on social grants and 54% of spending on education and health go to the poorest half of the population in South Africa. At the time, the stats provided clues about South Africa's economic state and the effects of … The study findings imply that policies aimed at increasing smallholder commercialization should also focus on how to reduce the disincentive effects of social grants. ATMs will be restocked in time for the payment cycle which starts on 30 March. About 2.9 million South Africans above the age of 60 receive old age grants, 11.3 million are beneficiaries of child support grants and 1.1 million receive disability grants, the review notes. In an attempt to minimise the negative economic impacts of Covid-19 on vulnerable households the South African government allocated R50 billion in additional social assistance spending. According to the latest General Household Survey released by Stats SA, the percentage of people who rely on social grants has increased from 12.7 % in 2003 to 30.1 % in 2015. Socio-economic impact of gambling in South Africa (2017) Key findings and recommendations Presentation to: ... Gambling and social welfare grants 70,5 29,5% 0 20 40 60 80 Not receiving social grants Receive social grants Percentage ... negative impact of gambling on household welfare, amongst the less affluent. Payment of grants. Bhorat et al. However, a number of these social expenditure programmes have been less effective than they could have been in delivering services to the poorest South Africans. It is 25 days since South Africa began a nation-wide lockdown to contain the spread of the coronavirus. Figures from the Quarterly Employment Statistics (QES) survey showed that South Africa’s formal non-agricultural sector added 81 000 jobs in the fourth quarter of 2017, bringing the total number of persons employed in the formal non-agricultural to 9,8 million. Recent reports show an increase in the number of South Africans who rely on state funds in order to make ends meet. The main weakness is the fact that the grant system was expanded during a period of rapid economic growth. This had lasting effects on social … If you're already receiving a social grant or are in the process of applying for one, here's what you need to know. Old Age Grant. 702/CapeTalk presenter Redi Tlhabi had an interview with Louise Ferreira, a journalist for Africa Check, on some of the myths surrounding Social Grants in South Africa. Grants make people lazy and dependent on the government. The child grant increases teenage pregnancy. Parents claim grants for children who don’t live with them. South Africa distributes 17 million social grants every month. And so by the time the COVID-19 inflection point arrived, the country’s socio-economic stability was already in a fragile state of affairs. Taking the SBI statistics into account, 57 500 businesses would be affected: Calculation: 250 000 x = 57 500 But how many are true? On 21 April 2020, the President of South Africa addressed the nation yet again to inform South Africans of additional economic and social relief measures to be put in place as a result of the novel coronavirus ("COVID-19") pandemic. You will only be eligible for a grant if your income and assets fall below a certain threshold. The state has developed a number of grants for payment to vulnerable members of society like children, the disabled and the elderly to reduce poverty and better manage economic and social risks. Commissioned by the Directorate: Finance and Economics for the Department of Social Development. In fact, social grants encourage laziness and dependency on the government. Social grants and labour market behaviour: evidence from South Africa’s household surveys. The media’s focus as COVID-19 has washed over the globe has largely concentrated on … The seven social grant categories will increase by between 4 and 4.7%. The full list of grants available in South Africa include: Child Support Grant. Notwithstanding enormous sociopolitical pressures on the national budget after social grants reform, new analysis shows that the overall fiscal position is still stable. Responsibility to distribute grant 17 2.1.5. A total of 44.3% of households in South Africa are receiving at least one social grant, up from 30.8% in 2003, according to a new report by Stats SA. The report shows that the poorest in South Africa benefit from social spending programs. Brand South Africa reporter. History of social grants in South Africa with specific reference to the Child Support Grants (CSG) 15 2.1.3. Social grants. Government grants are available for everyone from artists to businesses to biochemists. For South Africa to be the strongest African economy and attenting positions such as being a member of the g8 as been a clearl work of globalization making it at the center of the Africa. The main report pulls together a number of aspects. The full list of grants available in South Africa include: Child Support Grant. The South African government has imposed a number of measures aimed at controlling the pandemic, chief being a nationwide lockdown. 2. They estimate that the social assistance measures announced by the government will still leave 45 per cent of South African … Over 17 million South Africans, one in five, rely on social welfare grants from the state, said Stats SA. The social and economic impact of South Africa’s Social Security System. Literature reviewed in this paper reveals that this anti-poverty measure has contributed significantly towards the reduction of poverty levels in South Africa. The paper examines the social protection measure using the Income and Expenditure Survey data (2010/11). Social grants and labour market behaviour: evidence from South Africa’s household surveys. The means test is the process of assessing the value of your assets and income. In 2002 South Africa … Social grants doing more harm than good? Research ICT Africa’s (RIA) 2018 Report on the State of ICT in South Africa reveals that high-speed broadband internet and the broader digital economy play a vital role in South Africa. If the 29% of SMMEs who are not sure if their business will survive end up not surviving during this period, the number of respondents would increase from 11% to 23%. The good, the bad and the ugly facing South Africa after lockdown. The child support grant has grown significantly, increasing from just under 22 000 beneficiaries in … History of social grants in South Africa with specific reference to the Child Support Grants (CSG) 15 2.1.3. This study evaluates the social and economic impact of State Old Age Pensions (SOAP), Disability Grants (DG), Child Support Grants (CSG), Care Dependency Grants (CDG), Foster Care Grants (FCG) and Grants-in-Aid (GIA). Most grants are targeted in a way that's supposed to serve the greater good, whether by creating art or carrying out research. About 2.9 million South Africans above the age of 60 receive old age grants, 11.3 million are beneficiaries of child support grants and 1.1 million receive disability grants, the review notes. Globalization has managed to have an impact on the economy ,politics and social nature bringing about positive results for South Africa. The impact of social grants on poverty and inequality is well documented, particularly in the case of South Africa. This paper aims at analyzing the effects of social policies on income inequalities in South Africa since the 1990s. The majority of cases have been in Gauteng (865) the Western Cape (587) and Kawazulu Natal (443). Grants are like putting a Band-Aid on a deep cut that needs stitches. The results show that social grants are well-targeted and have significantly reduced poverty levels in areas with high poverty rates such as the Eastern Cape and Limpopo provinces, among the African population, in female-headed households and in rural areas. Applicants for social grants must be South African citizens, permanent residents or refugees and currently living in South Africa. Except for the Foster Child Grant and the Grant in Aid, social grants in South Africa are currently “means tested”. review of South Africa, concludes that the country needs job-intensive growth, and—in support of its youth—an edu-cation and training system that can produce a more skilled workforce that is better attuned to evolving labor market demands.10 8 “Social grants reach almost one third of South Africans,” South Africa.info, 19 June On paydays hundreds of people gather in towns and that’s when the rules of social distancing are completely forgotten. Hagen-Zanker, Morgan and Meth (2011) noted that social grants have a range of positive outcomes on non-monetary aspects of poverty, such as health of household members, school attendance of A few years ago, hippo.co.za wrote an article about South Africans' growing dependence on social grants. South Africa: Covid-19 and Rural South Africa - The Good, the Bad and the Ugly. Commissioned by the Directorate: Finance and Economics for the Department of Social Development. 2021 will be much like 2020. These weather changes impact on agricultural output and the timing of harvest seasons, thus wreaking havoc on food security and logistical planning. The programme is one of the tools we have for addressing a long history of inequality and assisting the most vulnerable people in our country. South Africa’s tax buoyancy has declined from 1.37 in 2014 … ... in countering the economic effects of lockdowns. This has resulted in income loss for individuals and firms, with vulnerable populations (low earners, those in informal and precarious … In this regard, old age and disability grants will increase by 4.5% to R1 860, up from R1 780. email: eseekoe @uj.ac.za. The cash transfer package included a temporary increase in existing grants … A buoyancy of one means the pace of revenue growth is matching that of GDP growth. South Africa’s Dependency on Social Grants – 3 Years Later. With the help of modest economic growth and an associated increase in per capita household income, the introduction and expansion of social grants has helped alleviate the inherited burden of poverty. The nation-wide lockdown has had a negative impact on the revenue of municipalities at a time when the demands on them are increasing. A buoyancy of one means the pace of revenue growth is matching that of GDP growth. Social grant payments through bank ATMs and retail outlets. The number of social grants recipients in South Africa have increased exponentially over the past twenty years: from an estimated 4-million in 1994 to 16.3-million by 31 August last year. The democratic government in South Africa has developed a system of social grants to combat the high levels of poverty and inequality inherited from the apartheid regime. In South Africa, ... of social grants and unemployment insurance South Africa … People are dying across South Africa because of Covid-19 and others will be killed by starvation. A subsidy or government incentive is a form of financial aid or support extended to an economic sector (business, or individual) generally with the aim of promoting economic and social policy. 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