SOCIAL ASSISTANCE: ISSUES AND CHALLENGES

Presentation to NCOP Select Committee

11 SEPTEMBER 2001

Background

• Major types of grants: Children, Elderly, people with Disabilities

• Distribute R1,7 billion to 3,8 million beneficiaries monthly

• Major program for Poverty Alleviation

Trends in Beneficiary Numbers - Total

• Beneficiaries increased from 2,8 million in April 98 to 3,8 million in April 2001

• Strong increase in CSG

Total number of Beneficiaries

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

98/04 99/04 00/02 01/04

Trends in Beneficiary Numbers - Child Support

• Increase in uptake– from 34 471 in April

98 to 1 078 million in April 2001

Child Support Grant

0

200000

400000

600000

800000

1000000

1200000

99/04 00/02 01/04

Number of beneficiaries

Child Support Grant - Provincial variation

Table 4: Child Support Grant Applications

Target April-03 Actual July 01 % of target

Eastern Cape 780000 187272 24.01

Free State 300000 70925 23.64

Gauteng 90000 145859 162.07

Kw aZulu Natal 600000 325265 54.21

Mpumalanga 210000 104160 49.60

Northern Cape 30000 23518 78.39

Northern Province 600000 165561 27.59

North West 330000 119657 36.26

Western Cape 90000 80908 89.90

Total 3030000 1223125 40.37

Trends in Beneficiary Numbers - Old Age

• Increase from 1,7 million in April 98 to 1,9 million in April 2001

• Average annual rate of 3,5%

• Above 3,5% growth in EC, MP, NC, NW, NP and WC

• Others all below 3%

Old Age Grant

1.6

1.65

1.7

1.75

1.8

1.85

1.9

98/04 99/04 00/02 01/04

Number of beneficiaries

Provincial variation in Old Age

Beneficiaries 98/04 99/04 00/02 01/04

Eastern Cape 346,634 363,014 381,469 393,185

Free State 109,607 108,980 108,969 113,832

Gauteng 221,907 226,543 226,363 225,603

Kw aZulu Natal 363,257 390,045 386,470 389,079

Mpumalanga 122,172 124,966 128,015 132,354

Northern Cape 36,416 40,468 41,115 42,049

Northern Province 234,127 271,770 279,988 285,222

North West 136,038 144,192 151,219 153,942

Western Cape 132,489 142,717 145,118 146,922

Total 1,702,647 1,812,695 1,848,726 1,882,188

Trends in Beneficiary Numbers - Disability Grant

• Decline from 660 000 in April 98 to 607 000 in February 2000 - About 4,1%

• Increase again in April 2001 by 4%– Above 5% in EC, FS,

G, MP and NP

• Declines in NC & NW

Disability Grant

580

590

600

610

620

630

640

650

660

670

98/04 99/04 00/02 01/04

Thou

sand

s

Number of beneficiaries

Provincial variation in Disability Beneficiaries

98/04 99/04 00/02 01/04

Eastern Cape 146,988 128,942 130,983 140,563

Free State 47,820 40,140 29,968 35,480

Gauteng 65,742 60,005 61,269 64,775

Kw aZulu Natal 171,555 148,165 131,369 137,025

Mpumalanga 32,365 30,703 32,160 34,341

Northern Cape 31,105 37,509 25,955 25,349

Northern Province 20,355 46,203 51,821 56,982

North West 50,854 52,839 53,115 46,276

Western Cape 93,414 89,272 90,897 90,967

Total 660,198 633,778 607,537 631,758

Trends in Beneficiary Numbers - Other

• Foster Care Grant- Increased from 43 906 (April 98) to 61 268- Grew by 6% in 98/99, 7,2% in 99/00 and 23%

in 2000/01- Strong growth in KZN and Northern Province

• Care Dependency Grant- Grew by 66% in 98/99, 35% in 99/00 and 33% in

2000/01

• War Veteran’s, State Maintenance and Grant-in-aid numbers continues to decline

Focus Areas

• Policy and Issues- Comprehensive social security- Improvement of social security delivery- Amendment to social assistance regulations

• Budgeting for 2002- Grant increases- Projections of expenditure and budgets

Comprehensive social security

• Policy Areas Covered

- Poverty alleviation- Employment policy- Old age and retirement- Private insurance- Healthcare- Disability- HIV/AIDS- Regional integration

Improvement of social security delivery

• Key challenges in service delivery

- Lack of communication regarding approval, review, cancellation, death

- Venues that lack shelter, toilet facilities, water, chairs and long queues

- Lack of necessary human resources

- Attitudes of paying staff

- Robberies and safety of staff and pensioners

- Under-budgeting

Recommendations

- the design of uniform administration processes to approve grants within two days

- building human resources capacity for social security

- improving customer care inline with the Batho Pele principles

- Decentralised operations:will facilitate quick decision making and accountability

- Compliance and Fraud prevention will become an express

requirement

Recommendations

- modernising financial management

- upgrading pay points and physical infrastructure

- the replacement of the Socpen system and related technology

Amendment of Regulations to Social Assistance Act 1992

• Appointment of Assessment Panels

• Abolition of the assets test for social grants

• Amendment of the accrual date

• Simplification of review procedures