Minister of Finance Enoch Godongwana announced changes to social grants in Wednesday’s budget. Archive photo: Ashraf Hendricks

Minister of Finance Enoch Godongwana has announced increases to social grants which do not keep pace with inflation.

Godongwana said the funds allocated —- R58.6 billion in the medium term —- would “provide for inflationary increases” to permanent grants. But none of the grants will rise as much as the current inflation rate of 5.7% a year. And the Foster Care grant is going up by less than 2%.

Changes to grants this year:

• The Care Dependency Grant will increase from R1,890 to R1,980 (in April) and then R1,990 (in October) (a 5.3% increase)
• The Disability Grant will increase from R1,890 to R1,980 (in April) and then R1,990 (in October) (a 5.3% increase)
• The War Veterans Grant will increase from R1,910 to R2,000 (in April) and then R2,010 (in October) (a 5.2% increase)
• The Old Age Grant will increase from R1,890 to R1,980 (in April) and then R1,990 (in October) (a 5.3% increase. And for people older than 75 years the grant will increase from R1,910 to R2,000 (in April) and then R2,010 (in October) (a 5.2% increase)
• The Foster Care grant will increase from R1,050 to R1,070 (a 1.9% increase)
• The Child Support Grant will increase from R460 to R480 (a 4.3% increase)

Godongwana also announced a new social grant, the Extended Child Support Grant, for double orphans, “to encourage the care of orphans within families rather than foster care”.

And he confirmed that the R350 Covid-19 Social Relief of Distress (SRD) grant will be extended for another 12 months. This will cost R44 billion.

The Old Age, War Veterans, Disability, and Care Dependence grants will increase by R90 in April and a further R10 in October. The Foster Care and Child Support grants will increase once-off by R20 in April.

Nearly one in two South Africans (46%) now receive social grants, Godongwana said.

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