Godongwana urged to increase social grants in line with food inflation

Finance Minister Enoch Godongwana has been urged to match social grants with the rising cost of living. Picture: Picture: Phando Jikelo/Independent Newspapers

Finance Minister Enoch Godongwana has been urged to match social grants with the rising cost of living. Picture: Picture: Phando Jikelo/Independent Newspapers

Published Feb 16, 2025

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MANYANE MANYANE

Finance Minister Enoch Godongwana has been urged to prioritise the rights and dignity of social grant recipients in his budget speech on Wednesday.

Civil society organisations said the government must increase social grants at a minimum to match the rising cost of living.

Social grants provide crucial support for millions of South Africans, particularly the elderly, disabled and children from low-income households.

However, the value of social grants has been decreasing due to the exorbitant cost of living and the continuing rising cost of living has become a growing concern for millions of households, with the financial strain of putting food on the table seemingly ever-increasing, civil society groups said.

According to the Pietermaritzburg Economic Justice and Dignity Group (PMBEJD), the child support grant of R530 was below the average food poverty line of R796 and further below the average cost of R976,39 to secure a basic nutritious diet for a child in January 2025.

The South African National Christian Forum (SANCF) said the government should increase social grants to the same value spent on prisoners, which covers food, clothing and detention costs.

Last year, Correctional Services Minister Pieter Groenewald revealed that the government spent about R400 per day on an inmate.

SANCF president Bishop Marothi Mashashane said it does not make sense that the government was prepared to spend more for wrongdoers than law-abiding citizens.

“It's our plea that elderly pension grants be increased to at least R3,500 noting that most of them are still feeding families due to the high rate of unemployment, we further recommend R900 for the child grant to deal with the scourge of hunger amongst children, and the unemployment grant be increased to R700 to assist those who are spending money while searching for jobs,” he said.

Mashashane said that Godongwana’s budget speech would be a great test to see if the Government of National Unity’s (GNU) purpose is to eradicate inequality, poverty and unemployment.

“The starting point should be helping the poor, and working together to address the economic and social factors that contribute to poverty and inequality,” said Mashashane.

Human rights organisation Black Sash called on Godongwana to increase the social relief of distress (SRD) grant to match the food poverty line.

The organisation’s executive director Rachel Bukasa said concrete commitments must be made toward implementing a comprehensive Social Protection Floor that guarantees economic security “for all”.

Bukasa added that the South African Social Security Agency (Sassa) must receive adequate support to prevent payment delays, improve accessibility, and reduce barriers to receiving grants.

“Social grants are a vital lifeline for millions. We call on the Minister to ensure that the budget reflects the urgent need to protect the most vulnerable in our society,” she said.

The Economic Liberators Forum SA (ELF-SA) said it is also expecting Godongwana to announce an increase in social grants.

The organisation’s spokesperson Sfiso Mthembu said given the current deficit in the government budget, ELF-SA hopes to hear about strategies to address this issue while still prioritising social welfare programs, including social grants.

“ELF-SA is optimistic that the Minister will address these important issues in the budget speech to positively impact the lives of citizens and create a more sustainable future,” Mthembu said.

Meanwhile, the Congress of South Africa Trade Unions (Cosatu) said it is hoping that the government will not disappoint, adding that the working class and society at large are battling numerous dire socio-economic crises.

Cosatu’s parliamentary coordinator Matthew Parks said: “Now is not the time for a business-as-usual approach. What is needed is a bold, progressive and aggressive budget that will capacitate the state to deliver the quality public services society and the economy depend upon, to stimulate badly needed growth and slash unemployment to generate the revenue the state requires, to provide relief to the unemployed whilst the economy picks up.”

“What we cannot afford is yet another attempt by Treasury to delude ourselves into believing that tinkering at the sides will make a difference. Nor should we fool ourselves into thinking that inflicting pain upon the poor and the working class is a sound economic model.”

Parks said the union will vehemently rejects any increase on taxes upon the working class, in particular VAT or personal income tax for low-income earners.

He said such increases would plunge workers and their families, who are already bleeding from the rising costs of living and a 400 basis points hike in the repo rate, into further jeopardy.

“ A VAT increase will stoke inflation. Such hikes would suck money out of the economy when it is most needed to stimulate growth. It would send a message to society that the government cares more about balancing tables and graphs than workers being able to put food on the table and pay for electricity.

“This is a message that politicians would be very wise to listen to as we head towards the highly contested 2026 local government elections, in particular our ally, the ANC,” he said