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SASSA Grant Changes
The South African Social Security Agency (SASSA) is an essential provider of financial assistance to underprivileged individuals and families through various programs. In addition to introducing other adjustments over the years, the South African organization SASSA has announced a significant overhaul for 2024.
After accounting for inflation, spending on social grants has increased fourfold since 1994. Currently, the South African Social Security Agency (SASSA) disburses social grants totaling 26 million every month. In this article we are going to provide detailed information on History and Future of SASSA Grant Changes, so please continue with us and keep reading.
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Understanding the need of SASSA Grant Changes
The amount for various social grants provided by SASSA changes every year, and is announced beforehand by the Finance Minister of South Africa. It is done in order to keep up with the inflation and adjust the grant amounts in order to help the beneficiaries cope up with the increasing cost of living.
Further, by increasing the Grant amount and other essential variables, SASSA wishes to reach more and more number of people in the nation. The main purpose of the SASSA grants is to uplift the living conditions of low-income and vulnerable households, this can be achieved only if the grant amounts are revised regularly.
SASSA Grant Changes Overview
| Post Head | History and Future of SASSA Grant Changes |
| Country | South Africa |
| SASSA Grants Introduction year | 1994 |
| Current No. of Recipients | Around 26 million |
| For More Readings | Tap Here |
History of SASSA Grant Changes
The SASSA Grnats were first launched in 1994, the year that South Africa gained its democratic status. All state pensions for old age were equal by 1994.
Grants for state maintenance and disability were also available, albeit they were added later, for foster parents and children. About 2.5 million people were given grants by the nation at the time, primarily for state maintenance, disability, and old age.
From R10.5 billion in 1994 to R232.7 billion in 2022, or around 11% of the R21-trillion national budget, is the amount that the government has spent on social handouts since 1994. During 1994, social grant expenditures had doubled when adjusted for inflation.
The Old Age Grant was raised from R390 to R1,985 in 2022 from 1994. While in 1994 the Foster Care Grant was almost at the upper bound of the poverty line, it is currently only marginally above the lower bound of the food poverty level (R663 in 2022).
Future of SASSA Grant Changes
Social handouts would rise by almost 5%, according to a statement made by Finance Minister Enoch Godongwana during his budget speech for the fiscal year 2023–2024. After SASSA was given R400 million, the Minister described the increases to permanent grants.
For individuals over 75, the old age stipend will be R2,085; for those under 75, it will be R2,105. The payment for war veterans will increase from R2,005 to R2,105. The rise in disability allowances will go from R1 990 to R 2085. Similarly, grant-in-aid is scheduled to rise from R480 to R505, since it is due for an increase.
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Godongwana also mentioned that the state anticipates an increase in beneficiaries over the following three years and that the two programs that receive the most percentage of government financing are child care and old age benefits. Child support and old age subsidies together account for 70% of grant expenditures over the MTEF period.
How Often SASSA Changes Grant Amount?
The percentage of South Africans who get social grants is about 42%. Comparing 1994 to now, this is an increase of 6.5%. Annual adjustments are made to the SASSA grant amount to reflect changes in inflation and cost of living.
The World Bank claims that although there has been no progress in reducing poverty in South Africa since 2011, the number of impoverished individuals has risen recently.
In 2014, the World Bank conducted its most recent survey, which revealed that 25% of people were food impoverished and that 55% of people were living below the national upper-bound poverty threshold of R992 per month.
According to World Bank estimates, 63% of the population currently lives below the poverty level of an upper-middle-income country (R40 per day), which is an increase of 1.8 million individuals from before the Covid outbreak.
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