South Africa

Budget 2024: Godongwana pulls purse strings as social grants receive minimal increases

Minister Enoch Godongwana at the Budget 2024 announced the old age grant, war veterans, care dependent and disability grants will all receive an increase of R100 in 2024.

They would first receive R90 effective from April this year and the remaining R10 from October.

Minister Godongwana also said that foster care grants would receive a R50 increase while those getting a child support grant would receive a R20 grant increase.

Cost of living

“We are sensitive to the increase in the cost of living for the nearly 19 million South Africans who rely on these grants to make ends meet.

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In this regard, we have done as much as the fiscal envelope allows,” he said.

Meanwhile, Minister Godongwana confirmed that efforts are presently being made to enhance the Covid-19 Social Relief of Distress Grant by April of this year.

He said that the National Treasury and the Department of Social Development are collaborating to ensure that any changes to this grant are properly incorporated into the official regulations.

The minister said that these changes are planned to fit within the existing financial framework, meaning they won’t exceed the budget already allocated for this purpose.

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Continuing SRD grant

Looking ahead, Godongwana explained that if there’s a need to continue the grant beyond March 2025, it will require a thorough consideration of social security policy reforms and a sustainable funding source.

This means that policymakers will need to finalise both the reforms to how social security is structured and funded to ensure the grant’s longevity and effectiveness in supporting those in need during these challenging times, he said.

Last year, the minister revealed an allocation of R66 billion to Social Development over the medium term, part of which included R36 billion for extending the Covid-19 social relief of distress grant until 31 March 2024.

Additionally, R30 billion was allocated to inflation-linked increases in various social grants.

The old age and disability grants received significant boosts, with increases of R90 on 1 April 2023, followed by an additional R10 on 1 October 2023, resulting in a total rise to R2 090.

Similarly, the child support grant saw an upward adjustment from R480 to R510  (a R30 increase) on October 1, 2023, while the foster care grant increased from R1 070 to R1 130 over the same period.