Beneficiaries of social grants in South Africa, particularly those receiving the old age grant, were eagerly waiting to hear how much their payments would increase.

With a lot of anticipation, many hoped the Finance Minister, Enoch Godongwana, would unveil the new figures during the National Budget Speech in Cape Town on Wednesday, February 19.

Unfortunately, the speech was delayed at the last moment due to disagreements surrounding a proposed two-percentage-point VAT hike.

What Was Expected in the Budget Speech?

In his original speech, Godongwana was expected to announce a substantial R23.3 billion increase in funding for social grants and welfare programs.

This would have benefited nearly half of South Africa’s population, particularly those who rely on social assistance.

The goal of the increase was to help protect millions of South Africans from the financial impact of the proposed VAT hike.

Godongwana had planned to explain that the additional funds would ensure that low-income households wouldn’t suffer due to the VAT rate increase.

The expected boost would have supported a wide range of grants, including the old age and child support grants.

Details of the Proposed Grant Increases

For those relying on the old age grant, the increase would have been R150 over the course of the year.

Specifically, there was to be an immediate R140 increase in April, followed by an additional R10 in October.

The child support grant would have also seen a R50 increase.

If the budget figures remain the same when Godongwana delivers his speech on March 12, here’s a breakdown of the expected changes to social grants:

Old age grant: R140 increase in April and an additional R10 increase in October
Child support grant: Increased from R530 to R580
Foster care grant: R80 increase
COVID-19 Social Relief of Distress (SRD) Grant: Remains at R370

What’s the Future of the COVID-19 SRD Grant?

Last year, Godongwana had mentioned that work was in progress to enhance the COVID-19 SRD grant by April 2024.

The Treasury planned to collaborate with the Department of Social Development to improve the grant’s final regulations.

At that time, he also assured that funding for the grant’s extension beyond March 2025 would be clarified, along with social security policy reforms.

Eventually, the SRD grant was increased by R20, bringing it to R370.

The Minister was also planning to announce the grant’s extension until March 2026.

Will the Proposed Increases Change?

As the budget delivery has been delayed, it remains to be seen whether the proposed grant increases will remain the same when Godongwana addresses Parliament in March.

Will the figures change, or will they stay the same? Share your thoughts with us in the comments or via WhatsApp.

This article was published on TDPel Media. Thanks for reading!

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