Increases in grants will not alleviate poverty in communities – researcher says

Government’s slight social grants increments will not have much impact on alleviating poverty for the most vulnerable in society.

This is according to economic justice researcher Mervyn Abrahams.

Abrahams said the national treasury’s budget tabled by minister Tito Mboweni last week was very disappointing for the vulnerable members of society who depend on social grants to get by.

“We are extremely disappointed by the budget, the R30 increase for old age is a 1.6 per cent increase and the R10 for child support is about 2.2 per cent increase. Both of these fall below the inflation rate.”

Abrahams said the fuel increase by 27c/litre and 15 per cent electricity hike expected to start in April would worsen the living conditions of the poor and make the slight grant increment come to nothing.

“On the one hand the government was giving but on the other, it was taking a huge chunk from the consumer which will affect the poor the most. Due to the increment in fuel and electricity, which are both factors in price hikes, the poor will afford less food,” he said.

“This will likely see hunger and poverty levels increase.”

Abrahams said about 21 per cent of South Africans were living below the poverty line.

“The average cost to feed a child nutritious food costs R710 and the R460 grant will not add much of a significance in the nutrition of a child.”

He said the latest research showed that one in four children under five years were suffering from stunting levels due to not having nutritious meals.

“Most of these vulnerable homes are women-headed so the government’s message of violence against women has been weakened by this budget. One of the most powerful weapons of violence is by weakening one’s buying power and this budget does that.”

Abrahams hinted that with the rate of unemployment climbing up, food insecurity due to lack of affordability would become an issue over the next financial year.

During the national budget speech, Mboweni announced a slight increment in the social grants.

Regular social assistance grants were adjusted as follows:
– R30 increase for the old age, disability and care dependency grants to R1 890.
– R30 increase in the war veteran’s grant to R1 910.
– R10 increase in the child support grant to R460.
– R10 increase for the foster care grant to R1 050.

Mboweni said for the 2021/22 financial year starting in April, provinces would receive R3.5-billion from the Department of Social Development to improve access to early childhood development services. R6.3 billion was allocated to extend the special Covid-19 social relief of distress grant until the end of April 2021.

Also, R678.3-million was earmarked for provincial departments of social development and basic education to continue rolling out free sanitary products for learners from low-income households.