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Update on Social Assistance Regulations (2008) Presentation

Thabo Rakoloti presents proposed changes to social assistance regulations, including changes to the means test, estimated number of beneficiaries, and time frames.

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Update on Social Assistance Regulations (2008) Presentation

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  1. Update on Social Assistance Regulations(2008)Thabo RakolotiPresentation to the Portfolio Committee on Social DevelopmentCape Town25 June 2008

  2. PRESENTATION OUTLINE Purpose Background Proposed changes to the regulations Proposed changes to the means test Estimated number of beneficiaries Time frames

  3. PURPOSE To brief the Portfolio Committee on the Status of the 2008 Regulations made in terms of the Social Assistance Act, Act No. 13 of 2004

  4. BACKGROUND In terms of section 32 of the Social Assistance Act, Act No. 13 of 2004, The Minister of Social Development must make regulations Section 32 (2) of the Social Assistance Act, 2004 provides that the Minister of Social Development must obtain concurrence of the Minister of Finance… if the regulations apply to, amongst others, the application for and payment of grants and the requirements in respect of eligibility for grants

  5. BACKGROUND During 2005, The Minister published the Regulations which were meant for public comments. On the 19th of March 2008 in the matter between Acess and the Minister of Social Development, Judge Webster ruled that the 2005 Regulations are in force and should be implemented. Regulation 10(6) of the 2004 Regulations provides as follows: “The agency may accept alternative proof of any of the documents required in terms of sub-regulation (1) to (5), including, where applicable, a statement made by the applicant under oath.”

  6. BACKGROUND In dealing with these matters, we consulted with the National Treasury and SASSA to finalise the correct version of the Regulations. The changes that we are effecting are as a result of this extensive consultation with our counterparts

  7. PROPOSED CHANGES (INSERTION) Regulation 9(1) SRD rewritten/revamped so that he/she must first comply with insufficient means and any of the other conditions as set out in the Procedure Manual on Social Relief of Distress Regulation 14 (5)- a social worker or any other person may investigate extension of SRD Provision for permanent residents to access social assistance (Khosa matter)

  8. PROPOSED CHANGES (INSERTION) Disabled refugees to access SRD and disability grants as well as refugee foster parents may access foster child grants and care dependency grants (Scalabrini) Extension of CSG to 15 years from 01 January 2009 Regulation 27(8) (b)- permanent DG may be reviewed at any time after application i.t.o. Reg. 3(a)

  9. CHANGES TO THE MEANS TEST In 2007, DSD commissioned a study to review the means test and grant values. The review confirmed that the impact of inflation has eroded the value of the grants and excluded many as the thresholds of the means test remained stagnant.

  10. CHANGES TO THE CHILD GRANTS • The urban/ rural distinction when assessing income for • Child Support Grant is removed. • Inserted a formula which will automatically adjust as the • grant value increases. • The income threshold for the CSG will now be 10 times • the value of the grant. • For example, if the grant value is R220, then the income • threshold will be R 2 200 per month. This income • threshold is now raised from R 1 100 per month to • R2 200 per month.

  11. CHANGES TO THE CHILD GRANTS The formula for determining income threshold for the Care Dependency Grant is: A = B x 10, where: A = income threshold B = Annual value of grant Therefore, the income limitation of Care Dependency Grant has increased from R4 000 per month to R 9400 per month for single persons

  12. CHANGES TO THE CHILD GRANTS The income of the child will not be taken into consideration for the purposes of both the Care Dependency Grant and the Foster Care Grant

  13. CHANGES TO THE ADULT GRANTS • The income exclusion level for the adult grant • is raised from R I 900 to R2 200 per month. • The asset test is increased from R338 000 to R450 000 for unmarried persons and; from R677 000 to R 900 0000 for married persons

  14. IMPACT OF THE CHANGES • The changes to the means test will increase • the number of child grants from 8,226,636 to • 9,213,832 • The extension to the CSG will result in • additional 1 114 000 • The changes to the Adult Grants will only • result in about 1% increase on the existing • levels

  15. TIME FRAMES • The Regulations will be • promulgated by beginning of July • 2008.

  16. THANK YOU

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