Volume II - The Northern Cape Provincial Spatial Development ...

Northern Cape PSDF
Volume 2
E.2.3 SOCIAL GRANTS RECEIVED
Stellenbosch Economic Working Papers: 15/10.
Office of the Premier &
Department of Rural Development & Land Reform
87
December 2011
Grants have been playing an important role in redistributing wealth in South Africa and proven to
be successful in reducing some of the income inequality. Grants soften the effects of poverty by
improving children’s health, reducing malnutrition, and enabling better access to schooling,
among other benefits 22 . Social grants are important sources of income for poor households,
especially in rural areas. They contribute up to 50% of income in households headed by the
elderly and prevent many such households from falling into poverty (Van der Berg et al 2009) 23 .
With 66.6% of households in Northern Cape earning less than R3 200, it is imperative that social
grants be effectively implemented among the poor. According to Botes (2011), social security
interventions will continue to be up‐scaled in the Northern Cape, because the government has
extended Child Support Grant to 18 years of age, and because of the population paradigm which
indicates that the Northern Cape is experiencing an increasingly ageing population. The
demographic indicators used for the Millennium Development Goals for lifting people out of
poverty shows an increase in the number of children receiving grants from 101 728 in 2005 to 245
486 in 2010 out of an estimated number of 327 541 children in the Northern Cape.
The number of foster care grants increased from 8 835 in 2007 to 10 238 in 2010. The care
dependency grant increased from 2 852 in 2007 to 3 883 in 2010, whilst the child support grant
now covers all eligible children born after 31 December 1993 until the child reaches the age of 18
years. Botes (2011) states when looking at the provincial population benefiting from social
assistance, the Old Age grant represents 17%, Disability grant represents 13% and the Child
Support grant represents 64% of the total. Child grants are but one way of addressing child
poverty by embracing the survival needs of children. Addressing child poverty holistically requires
interventions that achieve results of survival, protection, development and participation.
According to the LED Strategy approximately 27.9% of the Northern Cape received social grants in
2007 with child support (48.9%) getting the largest portion followed by old age grants (22.6%) and
physical disabilities (16.6%). Refer to the table below that indicates the social grants received in
South Africa and in the Northern Cape in 2007:
Table E.15: Social Grants received in South Africa and the Northern Cape, 2007 (Source: Global
Insight, 2009 as cited in the PGDS).
SOCIAL GRANT SOUTH AFRICA
(NUMBER OF
PERSONS)
AS % OF SOUTH
AFRICAN
POPULATION
NORTHERN CAPE
(NUMBER OF
PERSONS)
AS % OF
NORTHERN CAPE
POPULATION
Old age pension 2 367 320 4.9% 61 985 6.3%
Disability grant 1 186 493 2.5% 45 264 4.6%
Child support grant 7 192 926 15.0% 133 632 13.6%
Care dependency grant 182 365 0.4% 5 598 0.6%
Foster care grant 23 185 0.0% 914 0.1%
Grant in aid 102 322 0.2% 2 764 0.3%
Social relief 39 645 0.1% 1 031 0.1%
Multiple social grants 56 147 0.1% 1 914 0.2%
Institutions 651 769 1.4% 20 423 2.1%
TOTAL 11 802 173 24.7% 273 436 27.9%
22 http://ipsnews.net/news.asp?idnews=50402 – 20 September 2011.
23 Van der Berg, S. Siebrits, K. and Lekezwa, B. 2009: Efficiency and equity effects of social grants in South Africa.
Dennis Moss Partnership