Initial Basic Income Should Be Limited To Current COVID Grant Recipients – Panel

The expert panel on Basic Income Support said a social transfer scheme is a necessary and urgent requirement in South Africa but said considering the current constraints the initial phase should be limited to the current COVID social relief of distress grant.

While the panel on the Basic Income Support backs the implementation of a basic income grant framework – it said when considering the current economic and administrative constraints – the initial phase should be limited to the current COVID social relief of distress grant.

The panel released its report on Monday after it was commissioned to investigate the feasibility of basic income support under the supervision of the International Labour Organisation and the government.

Scenarios considered include setting the BIS level of benefits at R1,300 rand per month.

The panel added that overall, the differences in outcome between its scenarios indicate that coverage and the value of the grant matters.

However, indications were that even with the cautious entry-level version of the income support, the intervention levels are impactful in reducing poverty and inequality.

The panel added that the grant in South Africa will help combat poverty, but won’t do much to create jobs.

The government is expected to make an announcement on the scheme in next February’s budget speech.