GOOD statement by Brett Herron,
GOOD: Secretary-General & Member of Parliament
22 July 2022
The repo rate hike of .75 points announced yesterday comes as a direct and crushing blow to many South Africans already battling to pay car and furniture installments, and home-loans.
But the continuing uncaring and unprofessional management of the country’s Social Relief Distress Grant, which has left millions of our most destitute citizens high and dry for three months, is a national disaster.
The lack of urgency in helping those who have no choice but to rely on the unreliable support of the State reflects an uncaring government which continues to drive inequality through its inefficiencies and wastage.
According to a recent report by the Institute for Economic Justice, cumulatively, over the past three months, 27 million fewer payments of the Social Relief Distress Grant have been made, compared to the previous rate of payments.
This is a crushing disaster for those whose lives depend on this tiny income.
Since the chaotic transition to a new administrative system in March, an irrational means tests, red tape, technical glitches and payment delays have literally cut millions of citizens’ lifelines.
All beneficiaries had to reapply with over half of the people who applied for the R350 grant in April rejected. While the Department of Social Development has proposed amendments to the regulations, including raising the means test threshold to R624 a month sometime in the future, this does not go far enough.
The new threshold is the current national food poverty line as set by the Stats SA, but still far below the Upper Bound Poverty Line (currently at R1335). Furthermore, once qualified, the value of the grant itself remains R350 per person per month.
Lastly, the statistics show that only 66% of approved June applicants actually received their payments in June, with the backlogs also spilling into this month, along with the outstanding payments from months back.
It is astonishing to see how government is taking such a laid-back approach to the state of poverty and unemployment in South Africa. Government is fully aware that social grants make up the primary source of income for 24.4% of households in the country.
To add insult to injury, the Consumer Inflation Rate hit 7,4% in May – the highest it has been in the 13 years. Overall, this means an increase of up to 9,2% in average food prices, placing even more strain on the poor trying to cover just the basic food items, electricity, and the bare necessities.
Fixing the current challenges around the SRD grant is urgent, but it is also essential that we start planning the away forward for a universal Basic Income Grant (BIG).
The GOOD Party once again emphasise that whether or not South Africa can afford a BIG comes down to priorities, and it is therefore incumbent on the State to prioritise better.
Media Enquiries:
Brett Herron, GOOD: Secretary-General & Member of Parliament
Cell: 0825183264
Email: bretth@forgood.org.za
Janke Tolmay, GOOD: Media Manager
Cell: 0733671223
Email: janke@forgood.org.za