Lindiwe Zulu wants grant for those who earn less than R624 a month

Social development minister Lindiwe Zulu has proposed the R350 social relief of distress (SRD) grant be paid to people who earn less than R624 a month. 

The proposal comes after many, including organisations and members of the public, raised concerns about the income threshold to qualify for the grant being reduced from R595 to R350.

The reduction came after the grant was moved to the Social Assistance Act following the end of the national state of disaster. 

In the latest government gazette, Zulu proposed an update to the regulations underpinning SA Social Security Agency payments, calling for public comments by July 29. 

One proposed change sets the income threshold for “insufficient means” to R624. 

“The minister may from time to time, with the concurrence of the minister of finance, amend the income threshold contemplated in sub-regulations by notice in the gazette,” it read. 

The sum of R624 is the national food poverty line set by Stats SA in September 2021. 

Those who wish to comment on the proposal should submit written comments to the acting chief director of social assistance at saregs@dsd.gov.za or post them to the social development department in Pretoria.

How much has been budgeted? 

In June, Zulu said R44bn had been set aside to pay qualifying beneficiaries. She said the budget will provide a monthly R350 to 10.5-million people until the end of March 2023.

“Aspects of the regulations had to be strengthened to strengthen our fraud prevention and deter those who are not the intended beneficiaries from accessing the grant,” said Zulu. 

“The department will provide the R350 grant to fewer people in the third iteration than in the second iteration.”

What criteria will determine who is eligible? 

According to deputy director-general of the department Brenda Sibeko, all applicants will undergo “a means test”. 

“A proxy means test consists of checks against databases that may indicate income or alternative financial assistance and verification of insufficient means with banks. “If the results from bank verification contradict results from data checks referred to in the sub-regulation, the results from the bank verification must be used to make the final determination,” read the criteria. 

If a person had more than one bank account, the criteria for insufficient means would be deemed to have been met if all the bank accounts, assessed individually, were below the income threshold referred to in the sub-regulation. 

Sibeko said approved applicants did not need to reapply for the grant every month, but checks would be made monthly to determine if applicants continued to qualify.

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