Latest news with #SocialReliefofDistress
eNCA
2 days ago
- Business
- eNCA
IEJ calls for hike in social grants
JOHANNESBURG - As hunger and poverty continue to affect millions across South Africa, the Institute for Economic Justice is calling for a much-needed increase in social grant payments. WATCH | eNCA SoapBox | Who is to blame for SA's food poverty? Current grants, including the Social Relief of Distress and child support grants, fall well below the national food poverty line of R796 per person per month, leaving many families unable to afford basic nutrition.
The Citizen
3 days ago
- Business
- The Citizen
Sassa payment dates for July: What you need to know
Sassa payment dates for July: What you need to know The South African Social Security Agency (Sassa) has announced the payment dates for grant recipients in July. Below are the payment dates for the Older Person's, Disability and Children's grants: Old Age Grant: July 2 Disability Grant: July 3 Child Support Grant: July 4 Pretoria Rekord reports that as Sassa grant payments are made on different days, depending on the type of grant you receive, it's important to go to your payment point or ATM only on your designated date. Arriving too early may result in your payment not reflecting. Always double-check your grant's scheduled payment date to avoid delays or disappointment. All social grants, barring the Social Relief of Distress (SRD) grant, increased in April. Delivering the 2025 Budget Speech in Parliament earlier this year, Finance Minister Enoch Godongwana said that the number of social grant beneficiaries – excluding those receiving the SRD grant – was expected to rise to around 19 million in 2025/26 and 19.3 million in 2027/28 due to a growing population of older persons. He said that for 2025/26, approximately R284.7b was allocated for social grants. 'As announced by the President in the State of the Nation Address, the SRD was to be used as a basis for the introduction of a sustainable form of income support for unemployed people. 'The future form and nature of the SRD [grant] would be informed by the outcome of the review of active labour market programmes, which was expected to be completed by September. 'The truth was that ours was one of the most comprehensive social safety nets among emerging economies. This reflected our commitment to addressing poverty and inequality, while keeping our spending sustainable,' he said. The grant increases that took effect in April were: War Veterans Grant: Increased from R2 205 to R2 335 Disability Grant: Increased from R2 185 to R2 315 Foster Care Grant: Increased from R1 180 to R1 250 Care Dependency Grant: Increased from R2 185 to R2 315 Child Support Grant: Increased from R530 to R560 Grant-in-aid: Increased from R530 to R560 In the Budget Review, National Treasury stated that the budget for social grants was increased by R8.2b over the medium term to account for higher living costs. 'An amount of R35.2b was allocated to extend the payment at the current SRD rate of R370 per month per beneficiary, including administration costs,' the department said. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Eyewitness News
4 days ago
- General
- Eyewitness News
IEJ calls for hike in social grant payments, argues it's below national poverty line
JOHANNESBURG - The Institute for Economic Justice (IEJ) is calling for an urgent increase in social grant payments, arguing that current amounts fall significantly below the national poverty line. According to Statistics South Africa (Stats SA), the food poverty line – the minimum required to afford basic daily nutrition – is currently R796 per person, per month. The IEJ said grants such as the Social Relief of Distress (SRD) grant, which stands at R370, remain far below what's needed to cover basic living costs. IEJ researcher Siyanda Baduza said despite the Constitution guaranteeing the right to social assistance, many grant recipients can't afford food for themselves and their families. 'Similarly, the child support grant is also below the child poverty line, it's at R560, and it is also below the cost estimated to be needed to feed a child. 'I think one way to effectively target food poverty definitely would be with an increase in grant value because there's a very strong link between income poverty and food poverty.'
IOL News
4 days ago
- Business
- IOL News
62. 4% of under 24s Jobless: Experts call for urgent reform
The tragedy of youth unemployment brings severe economic and societal consequences. Image: RON AI South Africa's younger citizens had little to celebrate this Youth Month. Unemployment among those aged between 15 and 34, who make up almost half of the country's working age population, surged to 46.1% in the first quarter of 2025, Statistics South Africa recently reported. This was up from 44.6% in the previous quarter. The facts become even more sobering at the lower end of this age group, with a staggering unemployment rate of 62.4% listed for those aged under 24. The very idea that youths born after the dawn of democracy in 1994 are referred to as 'born frees' must surely feel like a cruel joke to those facing one closed door after another while trying to make something of their lives. Youth unemployment is also incredibly costly to the economy. According to Sanish Packirisami, an economist at Momentum Investments, the most significant cost to the economy associated with unemployment is the strain that it puts on the fiscus, which must support an expanded social welfare programme. 'This diverts much-needed funding for enhancing the potential growth of the economy through infrastructure spending or for delivering on social services to maintain the overall standard of living for millions,' Packirisami told IOL. 'When fewer individuals are contributing to tax revenue, there is further strain on the fiscus,' she added. Social grants, necessitated by widespread unemployment, are a drain on the fiscus. Image: Oupa Mokoena / Independent Media South Africa's social welfare programme is believed to cost the Treasury around R285 billion per year. This funding includes the R370-per-month Social Relief of Distress grant that many unemployed youths apply for. Youth unemployment isn't simply a loss of productivity, it's also a loss of potential, says Dr Thabo Mashongoane, CEO of the Mining Qualifications Authority. 'Every unemployed young person represents a stalled contribution to GDP, a missed innovation, and in many cases, a future cost to the public through welfare or social assistance,' Mashongoane told IOL. Role of the informal sector While youth unemployment remains one of the most pressing challenges in South Africa, it is mitigated, to a degree, by the informal sector, says Maarten Ackerman, Chief Economist at Citadel. However, this situation also brings a set of unique challenges. 'While the informal economy is thriving and provides many youth with opportunities to earn a living, the downside is that these individuals lack access to formal financial services,' Ackerman said. 'For instance, without a payslip, it's much harder to qualify for a loan to buy a home or a car. This exclusion creates a significant gap in the economy.' Youth unemployment brings an economic as well as a human toll. Given that joblessness in South Africa is more prevalent across lower-income earning groups, it can fuel social unrest and crime, which damages the very fabric of society, Packirisami adds. An often unspoken aspect of the youth unemployment crisis is mental health. 'Poor mental health, substance abuse, limited digital access and gender-based barriers also create a divide for the unemployed,' Packirisami explained. 'More government support for those affected by poor mental health and substance abuse is necessary to provide a healthier workforce in SA.' Better support for women facing caregiving burdens was also needed to encourage female labour force participation in the economy, Packirisami added. What are the potential solutions to youth unemployment in South Africa? Addressing the youth unemployment crisis in South Africa will require a multi-pronged approach. At the very least, government needs to address the poor quality of basic education, which leaves gaps in literacy and numeracy, Packirisami said, leaving the workforce ill-equipped when it comes to foundational job-specific skills. 'Government needs to encourage more students to enter Technical and Vocational Education and Training (TVET) to provide practical skills, but these TVET colleges often suffer from underfunding, outdated curricula, and social stigma, as they are viewed as second-best options,' Packirisami added. A telling statistic is that 72% of the 'multidimensionally' poor youth in the former homeland areas of South Africa lack adequate education, according to the most recent Youth Multidimensional Poverty Index. People in these areas, deprived of essential infrastructure and services during the apartheid era, continue to suffer from widespread poverty. Addressing the skills mismatch Educational opportunities that are created also need to align with demand patterns in the economy, says Nkosinathi Mahlangu, Youth Employment Portfolio Head at Momentum Group. 'Alignment between institutions of higher learning and the economic drivers is key to getting young people to acquire skills that are in demand, instead of graduating or pursuing courses that will not result in employment.' Critical and scarce skills should also be listed and tracked, in order to steer the youth into careers that will help turn the tide, Mahlangu added. 'Skills that are imported need to be part of a knowledge transfer and upskilling plan that will subsequently give South Africans a chance to fill those roles in the medium to long term.' Degrees don't always translate to jobs. Image: Supplied Mashongoane said the widening skills mismatch was one of the most overlooked problems facing the economy. Industries such as mining, for instance, face a shortage of artisans, technicians and safety professionals, but the training and the 'pipeline' for delivering these skills are under pressure. Furthermore, the renewable energy sector is expected to create more than 250,000 new jobs by 2030, Nepoworx Energy's CEO Nonjabulo Sokhela told IOL. Yet many of these roles remain unfilled due to a mismatch in skills. 'When young people are excluded from these opportunities, we lose critical human capital and risk delaying our just energy transition,' Sokhela said. According to BluLever Education, South Africa currently produces only 13,000 artisans a year, against a national target of 30,000. Its research shows the sector holds 2.1 million potential jobs, and trades like plumbing alone have a 280,000-role gap. Mashongoane strongly believes that South Africa needs to make a fundamental shift from 'education for education's sake' to education that leads to employment. 'Government, SETAs, and employers must jointly fund and scale programmes that combine classroom theory with real workplace exposure. This includes expanding artisan development, apprenticeships, internships, and learnerships that are matched to sector needs.' Role of the private sector The private sector should play a key role in helping the youth transition into the formal economy, and this goes hand in hand with addressing the broader structural challenges that have long hindered sectors such as manufacturing, mining and construction. Companies can help bridge the gap through various skills development, enterprise development and corporate social investment interventions, Mahlangu said. However, government needs to play its part in creating optimal conditions for these opportunities to be realised. 'Unlocking growth in these industries through better policy, infrastructure, and investment conditions would enable businesses to expand and create sustainable employment opportunities,' Ackerman said. 'Ultimately, enabling the private sector to thrive will help absorb more workers into the formal economy and reduce the unemployment burden, particularly among young South Africans,' he added. Unemployment remains one of the single biggest threats to South Africa's future, both socially and economically. In 2025, we have less people employed, in nominal terms, than just before the COVID pandemic, says Frederick Mitchell, chief economist at Aluma Capital. 'If you don't incentivise businesses to grow or employ people, businesses won't do that,' Mitchell said. Clearly, there is a great deal more that government could be doing to alleviate this crisis. IOL Business
IOL News
4 days ago
- Business
- IOL News
62. 4% of under 24s Jobless: Experts call for urgent reform
The very idea that youths born after the dawn of democracy in 1994 are referred to as 'born frees' must surely feel like a cruel joke to those facing one closed door after another while trying to make something of their lives. The facts become even more sobering at the lower end of this age group, with a staggering unemployment rate of 62.4% listed for those aged under 24. Unemployment among those aged between 15 and 34, who make up almost half of the country's working age population, surged to 46.1% in the first quarter of 2025 , Statistics South Africa recently reported. This was up from 44.6% in the previous quarter. South Africa's younger citizens had little to celebrate this Youth Month. 'When fewer individuals are contributing to tax revenue, there is further strain on the fiscus,' she added. 'This diverts much-needed funding for enhancing the potential growth of the economy through infrastructure spending or for delivering on social services to maintain the overall standard of living for millions,' Packirisami told IOL. According to Sanish Packirisami, an economist at Momentum Investments, the most significant cost to the economy associated with unemployment is the strain that it puts on the fiscus, which must support an expanded social welfare programme . Youth unemployment is also incredibly costly to the economy. Reset restore all settings to the default values Done Beginning of dialog window. Escape will cancel and close the window. Social grants, necessitated by widespread unemployment, are a drain on the fiscus. South Africa's social welfare programme is believed to cost the Treasury around R285 billion per year. This funding includes the R370-per-month Social Relief of Distress grant that many unemployed youths apply for. Youth unemployment isn't simply a loss of productivity, it's also a loss of potential, says Dr Thabo Mashongoane, CEO of the Mining Qualifications Authority. 'Every unemployed young person represents a stalled contribution to GDP, a missed innovation, and in many cases, a future cost to the public through welfare or social assistance,' Mashongoane told IOL. Role of the informal sector While youth unemployment remains one of the most pressing challenges in South Africa, it is mitigated, to a degree, by the informal sector, says Maarten Ackerman, Chief Economist at Citadel. However, this situation also brings a set of unique challenges. 'While the informal economy is thriving and provides many youth with opportunities to earn a living, the downside is that these individuals lack access to formal financial services,' Ackerman said. 'For instance, without a payslip, it's much harder to qualify for a loan to buy a home or a car. This exclusion creates a significant gap in the economy.' Youth unemployment brings an economic as well as a human toll. Given that joblessness in South Africa is more prevalent across lower-income earning groups, it can fuel social unrest and crime, which damages the very fabric of society, Packirisami adds. An often unspoken aspect of the youth unemployment crisis is mental health. 'Poor mental health, substance abuse, limited digital access and gender-based barriers also create a divide for the unemployed,' Packirisami explained. 'More government support for those affected by poor mental health and substance abuse is necessary to provide a healthier workforce in SA.' Better support for women facing caregiving burdens was also needed to encourage female labour force participation in the economy, Packirisami added. What are the potential solutions to youth unemployment in South Africa? Addressing the youth unemployment crisis in South Africa will require a multi-pronged approach. At the very least, government needs to address the poor quality of basic education, which leaves gaps in literacy and numeracy, Packirisami said, leaving the workforce ill-equipped when it comes to foundational job-specific skills. 'Government needs to encourage more students to enter Technical and Vocational Education and Training (TVET) to provide practical skills, but these TVET colleges often suffer from underfunding, outdated curricula, and social stigma, as they are viewed as second-best options,' Packirisami added. A telling statistic is that 72% of the 'multidimensionally' poor youth in the former homeland areas of South Africa lack adequate education, according to the most recent Youth Multidimensional Poverty Index. People in these areas, deprived of essential infrastructure and services during the apartheid era, continue to suffer from widespread poverty. Addressing the skills mismatch Educational opportunities that are created also need to align with demand patterns in the economy, says Nkosinathi Mahlangu, Youth Employment Portfolio Head at Momentum Group. 'Alignment between institutions of higher learning and the economic drivers is key to getting young people to acquire skills that are in demand, instead of graduating or pursuing courses that will not result in employment.' Critical and scarce skills should also be listed and tracked, in order to steer the youth into careers that will help turn the tide, Mahlangu added. 'Skills that are imported need to be part of a knowledge transfer and upskilling plan that will subsequently give South Africans a chance to fill those roles in the medium to long term.'
