Millions of vulnerable people require financial support from the government. The President revealed work is being done in an effort to introduce a basic income grant.
President Cyril Ramaphosa acknowledged that unemployment is the main driver of poverty in South Africa. While unemployment cannot be solved overnight, several interventions have been introduced by the government to assist unemployed people living in the country.
The President delivered the Opening of Parliament Address (OPA) at the Cape Town City Hall on Thursday where he revealed details of the programme of action for the new Executive.
The OPA comes a few weeks after the ushering in of the seventh administration after the National and Provincial Elections which took place. With no outright party winning a majority of the vote, 10 political parties formed a Government of National Unity (GNU), which encourages all parties to work together for improved service delivery and advanced economic growth.
Ramaphosa said the seventh administration will work towards rapid, inclusive and sustainable economic growth; the creation of a more just society by tackling poverty; safeguarding the rights of workers; stabilising government; building State capacity, and pursuing a foreign policy based on human rights, solidarity and peace.
Basic Income Support
Ramaphosa acknowledged that employment and earning opportunities are the best mechanisms to combat poverty. However, people require relief immediately which necessitated the introduction of the Social Relief of Distress (SRD) grant and other programmes.
We have however made interventions to support the unemployed through a variety of interventions including during Covid when we introduced the SRD Grant.
Millions of people submit SRD grant applications monthly with approximately 10 million people being eligible for Sassa SRD payments each month.
The SRD Grant has provided a lifeline to millions of unemployed people.
Ramaphosa said the SRD grant will be used as a basis for the introduction of permanent income support for unemployed people living in the country.
We will use this grant as a basis for the introduction of a sustainable form of income support for unemployed people to address the challenge of income poverty.
In the meantime, the president called on the local government to ensure that elderly, disabled, and impoverished citizens receive the necessary assistance with basic service payments through the indigent policy. Indigent policy refers to assisting poor households to pay for basic services like water and electricity, within what the municipality can afford.
Importantly, we will link social assistance with other forms of support to lift people out of poverty.
Introduction Of Basic Income Support Policy
Earlier this week, Social Development Minister Sisisi Tolashe said the extension of the SRD grant’s implementation until March 2025 has provided the government with an opportunity to finalise the draft policy on basic income support.
The minister said this draft policy will be tabled in Cabinet during the 2024/2025 financial year.
The extension of the SRD Grant until March 2025 has given us adequate time to finalise the Draft Policy on Basic Income Support, which will be tabled in Cabinet this financial year.
“This forms part of our social security reforms towards establishing the comprehensive social security system envisioned in the National Development Plan.”