The Minister of Finance, Enoch Godongwana, has announced the much-anticipated SASSA grant increase 2023 while presenting South Africa’s budget in Parliament on Wednesday, 22 February.
The Minister indicated that the increases are linked to inflation. He announced an allocation of R66 billion to the Department of Social Development this year.
SASSA grant increase 2023
According to the Godongwana’s budget speech, the SASSA grant increase 2023 is as follows:
- The old age and disability grants increase by R90 on 1 April 2023 and a further R10 on 1 October 2023. The result is a total increase to R2,090.
- The child support grant will increase from R480 to R510 on 1 October 2023.
- The foster care grant will increase from R1,070 to R1,130 on 1 October 2023.
“Expenditure on social grants will increase from R233 billion in 2022/23 to R248.4 billion in 2025/26 due to increases in the number of recipients and the value of the grants,” the National Treasury’s Budget Review stated.
“Excluding the COVID-19 social relief of distress grant, social grant coverage is expected to increase from about 18.6 million beneficiaries in March 2023 to 19.6 million beneficiaries by March 2026.
“The child support grant and old age grant together account for about 70 percent of total grant expenditure over the MTEF [Medium Term Expenditure Framework] period. These two grants will be provided to a total of 17.5 million beneficiaries in 2023/24. Social grants will increase in line with inflation over the medium term.”
The table below summarises the grant increases in 2023:
| Grant | 2022/23 | 1 April 2023 | 1 October 2023 |
|---|---|---|---|
| Old age | R1,990 | R2,080 | R2,090 |
| Old age over 75 | R2,010 | R2,100 | R2,110 |
| War veterans | R2,010 | R2,100 | R2,110 |
| Disability | R1,990 | R2,080 | R2,090 |
| Foster care | R1,070 | R1,120 | R1,130 |
| Care dependency | R1,990 | R2,080 | R2,090 |
| Child support | R480 | R500 | R510 |
| Grant-in-aid | R480 | R500 | R510 |
| CSG top-up | R240 | R250 | R250 |
R35.7b for SRD grant extension
To fund the extension of the R350 SRD grant until March 2024, the National Treasury has allocated R35.7 billion to the Department of Social Development. It also allocated R400 million to the South African Social Security Agency (SASSA) to administer the grant.
“Government is still considering alternative options to provide appropriate social protection for the working-age population that can replace or complement the current grant,” the Budget Review stated.
The SRD allocation is lower than the R44 billion allocated in the 2022 budget. “Funds spent on the grant are lower than projected in 2022/23 due to improved means testing,” the National Treasury explained.
The government has not yet announced what form of assistance would replace the SRD grant when it ends next year.
In November last year, President Cyril Ramaphosa said the National Treasury is considering a “work-seekers grant” to help the unemployed during their job search efforts.