KZN: TAFTA calls out government for ‘failing to support elder-led households’

The Association for the Aged (TAFTA) is calling out government following its ‘dismal’ 1, 16 percent increase in the old aged social grant- an increase far below inflation rates of up to 3, 4 per cent, as announced by finance minister, Tito Mboweni in his budget speech, last week.

TAFTA CEO, Femada Shamam, “The old age and disability grants will increase to R1, 890 from R1, 860 (1, 6 per cent). Recent studies by the SIRFAR institute and others have found that 87 per cent of the country’s elderly are using their pension social grants to support their adult children and their own children, therefore housing several generations. This is, in part, is due to the country’s high unemployment rate, exacerbated in recent months by the pandemic. These grants are supposed to be instrumental in the government’s poverty alleviation strategy, but if these increases are not even inflationary linked, we’re looking at entire families being impacted by a growing debt burden.”

Shamam explained that the organisation continues to struggle with a continued reduction in state funding in recent years and a growing debtors book of elders incapable of meeting their rental commitments, forcing the organisation to eat into its financial reserves, built over decades of the organisation’s 62-year history.

“We’ve been pointedly told that we need to utilise these reserves as funding is slowly stripped out from under us- this in the context of an ever decreasing year on year state subsidy,” she continued.

Given the organisation’s growing debtor’s book of R3 million in the current financial year, together with decreased funding and the lower social grant increase, the organisation would be forced to 0-rate residential rental increases to prevent elders from falling into further debt.

“Given that their pensions would not be inflationary linked, we couldn’t possibly look at increasing rentals at this time, and this further forces the organisation to dip into reserves to continue functioning. If the current climate prevails, long-standing organisations like our own, who continue to carry the responsibility of the state to care for vulnerable elders, will be forced into making difficult sustainability decisions relating to services for vulnerable elders. Where will that leave the impoverished elder generation then?” Shamam asked.

“TAFTA meets a 64 per cent shortfall in care costs for elders in our care, after an elder’s pension contribution and the Department of Social Development subsidy we receive for care. This shortfall amounts to a R22 million annual operational deficit that TAFTA meets through fundraising and investment programmes.

“In 2021, this deficit is set to grow to approximately R26 million due to a difficult fundraising environment and Covid-19 care costs.

“If we cannot reach out to vulnerable elders in the eThekwini region, almost 5, 500 elders would be impacted. These elders depend on TAFTA for their meals, community care and social support. If the state’s poverty alleviation strategy is not revised sooner rather than later, we will see the growth of multi-generational families living in abject poverty for sure,” Shamam concluded.

Visit www.tafta.org.za more information on the organisation.