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More earners to receive grants
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Fri, 30 May 2008 11:03
In a move that will see an additional two million South Africans
receiving social grants, Social Development Minister Zola Skweyiya on
Friday announced that people earning more than R2000 will soon qualify
for welfare assistance.
Addressing the National Assembly during the department's budget vote
debate, Skweyiya said the current means test, where people earning more
than R1500 a month did not qualify for grants, had kept many people
out of the social security system.
"Consequently, we have agreed to work towards the removal of the
archaic means test on certain grant types. This will have the
consequence of removing the urban/rural qualification divide whilst
raising the threshold to R2200 per month for child support, old age
and disability grants," he said.
The changes were meant to assist the poor to cope with current
economic challenges characterised by high inflation and rising food
prices.
"All these reforms in our social
security system will go a long way
towards widening the social security safety net and may see the entry
into the system of two million deserving people," he said.
The new measures would be implemented in phases.
"This exercise will however, pose a fiscal challenge which may
require either a gradual phasing out of the means test or
reconsideration of the tax threshold levels," Skweyiya said.
The department had set aside R124-million this year to assist those worse affected by the escalation of food prices.
"In response to poverty and vulnerability in the context of raising
food prices, we will do what ever is within our reach to ensure that
every qualifying and vulnerable citizen receives the social relief of
distress grant," he said.