The Department of Social Development (DSD) is grappling with challenges in managing social grants amidst the country’s economic pressures. During a session before Parliament’s portfolio committee on social development, DSD officials addressed calls to increase the pensioners’ grant, acknowledging the complexities involved.
Concerns Over Insufficient Pensioners’ Grant
Riyad Isaac, a representative from the DSD, highlighted the inadequacy of the current pensioners’ grant. At R2,310 per month, he argued that this amount is insufficient to meet the high living costs that pensioners face.
Isaac shared his personal concern for those living on this amount, emphasizing that many elderly citizens are forced to rely on food parcels because their income does not stretch far enough to cover basic needs. “Our parents have raised us, and this is how we repay them?” Isaac questioned, expressing his frustration with the situation.
Isaac further explained that while government employees or individuals with certain pensions might have more financial security, the majority of pensioners are struggling to survive. He proposed an increase of R500 to the current grant, acknowledging that the desired R5,000 increase is not feasible at this point.
Government’s Position on Grant Increases
While the Department of Social Development sympathizes with the elderly, Dr. Maureen Mogotsi, the acting chief director of the department, explained that a R5,000 pensioners’ grant is unrealistic. She pointed out that the pensioners’ grant, currently at R2,310 for those under 75, is already among the highest in the country.
The government has allocated R284.7 billion to social grants for the 2025/26 financial year, with around 19 million beneficiaries receiving grants. Of these, about 4.1 million are pensioners, representing a significant portion of the population.
Dr. Mogotsi also noted that increasing the pensioners’ grant to R5,000 for all recipients would cost an additional R246 billion, nearly doubling the current budget.
Pensioners’ Grant vs Other Social Grants
The pensioners’ grant exceeds the Upper Bound Poverty Line, and while this is a significant amount, it is difficult to argue for an increase, especially given that other grants, such as the Child Support Grant, fall below the food poverty line, even though child poverty rates are higher than those of adults. This imbalance in grant allocation creates a difficult dilemma for the department.
Current Grant Allocation and Future Projections
In 2023, there were 5.5 million people aged 60 and above, with women making up 59.8% and men 40.2% of this group. The Western Cape had the highest percentage of older people, at 10.8%. The pensioners’ grant is set to increase slightly in October, from R2,310 to R2,320 for those under 75, and from R2,330 to R2,340 for those 75 and older.
A Rock and a Hard Place: The Department’s Dilemma
The Department of Social Development finds itself in a tough spot, balancing the competing needs of different social grant recipients. SRD (Social Relief of Distress) grants, for example, also fail to meet the poverty line, leading to a challenge in determining which group should receive priority support.
Ultimately, Dr. Mogotsi concluded that, while the department acknowledges the need for higher support for pensioners, the financial burden of increasing the grant to R5,000 for millions of beneficiaries would be unsustainable.
Breakdown of Social Grants and Budget Allocations
| Grant Type | Current Amount | Proposed Increase | Beneficiaries |
|---|---|---|---|
| Pensioners’ Grant (under 75) | R2,310 | R2,320 (Oct 2025) | 4.1 million |
| Pensioners’ Grant (75 and older) | R2,330 | R2,340 (Oct 2025) | 4.1 million |
| SRD Grant | Below poverty line | N/A | 8.5 million |
| Child Support Grant | Below food poverty line | N/A | Varies |
The Department of Social Development finds itself at a crossroads, balancing the need for increased support for pensioners with the financial realities of the government’s budget.
Although the request for an increase to R5,000 seems urgent, the department’s position is clear: without significant adjustments to the budget, it is not feasible. The challenge remains to find sustainable solutions for all social grant beneficiaries.
FAQs
Why is the pensioners’ grant considered insufficient?
The current pensioners’ grant is R2,310, which does not cover the increasing living expenses faced by pensioners, especially for rent, utilities, and food.
How many people receive social grants in South Africa?
Approximately 19 million individuals benefit from social grants, with 4.1 million being pensioners.
What would the financial impact be if the pensioners’ grant were increased to R5,000?
Increasing the pensioners’ grant to R5,000 would cost the government an additional R246 billion, which would almost double the current budget for social grants.