Uncertainty over grant payments

WHILE Finance Minister Pravin Gordhan has announced increases to social grants, the uncertainty around how beneficiaries will be paid come April 1 remains.

In his speech, Gordhan announced that old age, disability and care dependency grants would all increase by R90 a month to R1 600, while foster care grants would go up R30 to R920 a month.

The child support grant would rise R20 to R380 a month.

Gordhan said the grants provided income support to the most vulnerable in society and the April increase would compensate for consumer price inflation.

However, two old age homes in Nelson Mandela Bay said the increase did not keep up with everincreasing living costs.

Algoa Bay Council for the Aged chief executive Maureen Andreka said the increase equated to less than 10% and the residents would be no better off than before.

“They may even be worse off than before,” she said, as a petrol price increase would push up transport costs.

“So their R90 increase will not cover their additional expenses.”

Without additional funding like the National Lottery Fund, the council’s own fundraisers and funding from residents’ families, there was little chance of residents at old age homes becoming better off, Andreka said.

In Despatch, residents at privately owned care centre Blackie’s Old Age Home cannot now cover even their accommodation.

The April 1 payment of grants is still in the balance as the SA Social Security Agency (Sassa) has yet to approach the Constitutional Court in a bid to extend the contract with CPS/Net1.