Can we believe political parties’ promises about basic income grant?

With political parties making promises before the national election next week and the president dangling the carrot of a basic income grant, many citizens want to know if they can believe what they’re being told.

The ANC released a far-reaching statement on Wednesday committing to a universal and redistributive basic income grant (BIG) that will be achieved by expanding the coverage and value of the social relief of distress (SRD) grant, if it is still in government after the election. This builds on and deepens commitments in the party’s manifesto and policies.

This statement comes partly in response to the Basic Income Election Scorecard released last week by the Universal Basic Income Coalition (UBIC). In producing the scorecard, UBIC reached out to all major parties and several responded with further clarity on their policies, including the ANC.

Parties’ scores on the UBIC scorecard ranged from A to F, reflecting large differences in the level of commitment to expanding the social security net. Of the other parties that responded to UBIC, both the UDM and GOOD also adopted additional policies or statements affirming their commitment to UBIG, and in GOOD’s case, the removal of unfair barriers to access to social grants.

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The scorecard process highlights the value and importance of dialogue between civil society and political parties on the detail and implementation of their policies.

The new ANC statement provides a basis that civil society can use to hold the ANC accountable for concrete targets and tangible outcomes after the election in the event that the ANC remains the governing party.

This is why ANC’s basic income grant plan is encouraging

UBIC says the ANC’s statement is encouraging because it:

• commits to finalising a policy for a universal BIG within two years
• rejects conditionalities being attached to BIG
• commits to values linked to poverty lines
• commits to progressive financing of the grant
• commits that the BIG will not replace existing social security, such as the Child Support Grant (CSG) or existing public services, and
• commits to addressing problems with the existing SRD.

However, UBIC says, achieving these commitments will require a transition to a developmental macroeconomic policy, which contrasts with the policy framework of the current government.

“This will require a departure from austerity measures that contributed to approximately 50% of eligible persons (6 million people) being excluded from the SRD grant each month, as well as post office and pay point closures, long queues and a lack of capacity within Sassa to assist, all of which disproportionately impact the most vulnerable, such as mothers with babies and rural communities.”

UBIC notes that it will also be important for the party to carefully review the systems and infrastructure of grant administration, which has resulted in high exclusion errors and privacy and surveillance risks for SRD grant applicants.

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Also need to restore child support grant to food poverty line

In addition, UBIC says it will continue to engage with the ANC on the need to restore the child support grant (CSG) to the food poverty line and ensure it maintains parity with the BIG, as this is crucial to meet the basic needs of children, while also ensuring that caregivers (predominantly women) are not left behind in the social security system, creating further gender inequity.

“A wealth of rigorous research shows that a UBIG in South Africa would stimulate local economies, boosting consumption and productivity and helping to bring more people into employment. This in turn will boost gross domestic product (GDP) and government revenue and if combined with other developmental macroeconomic and industrial policies, help to catalyse a virtuous cycle of inclusive economic growth.”

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UBIC says while there is an ongoing need for dialogue and vigilance, it is extremely encouraged to see political parties taking note of what civil society has to say. “We encourage political parties to affirm a clear, progressive commitment to evidence-based social protection policy.

“We are also happy to present our position paper to any stakeholders or political party interested in discussing the issues or mapping a pathway to universal basic income.”

UBIC is comprised of these organisations:

• Africa UBI Observatory
• Alternative Information and Development Centre (AIDC)
• Basic Income Earth Network (BIEN)
• Black Sash
• Children’s Institute, UCT
• Congress of South African Trade Unions (COSATU)
• Family Caregiving
• Global Reformed Platforms for Engagement (GRAPE)
• Institute for Economic Justice (IEJ)
• #PayTheGrants
• RightfulShare An Income Movement
• Social Policy Initiative (SPI)Women on Farms Project
• Youth Lab.