Future financial options for selected social grants in South Africa

Abstract

In this Research Report, I explore future options for the improvement of take-up rates in the State Old-Age Pension (SOAP) and the Child Support Grant (CSG), and the roles they play in reducing poverty in South Africa. I argue that although there is evidence that social security grants help reduce poverty, there are still people who are living in poor conditions and not receiving grants, and who might be eligible to receive them. I establish the importance of these grants and the role they play in reducing poverty for the poor. The position which I develop maintains that increasing the take-up rates of the Child Support Grant to all children under the age of 18 and reducing men's age of eligibility to 60 years to correspond to that of women could reduce poverty more than is the case presently. I investigate various views on welfare philosophies, in particular the views of Beveridge and the International Labour Organization models on social protection, together with the Constitution of the Republic of South Africa and the Social Assistance Act. I then conclude that there is discrimination between certain groups of the elderly and the children, thus making them ineligible for the State Old-Age Pension and the Child Support Grant and worsens via their living conditions. I then argue that extending the eligible age for children up to under 18 years and reducing the qualification age up to 60 years for elderly men would increase the take-up rates and reduce poverty among these vulnerable people even further. It is important to note that these grants also provide households with more resources like financial support to send children to school, access to better health care, access to better nutrition and increases their income. The Research Report concludes by describing the impact that these grants could have with increased eligibility.