SASSA Social Grant Facts and Statistics 2020-2021

by

Updated on November 16, 2024

South Africa’s social grant system, managed by the South African Social Security Agency (SASSA), is one of the country’s primary tools for alleviating poverty and providing financial stability to millions of its most vulnerable citizens. In the 2020-2021 financial year, SASSA’s grants reached record numbers due to increased demands exacerbated by the COVID-19 pandemic. This article provides a detailed look into the data and performance of SASSA’s social grants, emphasizing the economic and social impact during one of the most challenging periods in recent history.

Overview of SASSA Social Grants and Beneficiaries

As of the end of March 2021, a total of 18.44 million social grants were disbursed monthly by SASSA, benefiting 11.45 million individuals. The difference between the number of grants and beneficiaries highlights that many beneficiaries rely on more than one type of grant, underscoring the multifaceted needs of South African households.

The primary grants included:

  • Old Age Grant (OAG): Providing support to nearly 3.72 million elderly South Africans.
  • Child Support Grant (CSG): Reaching approximately 12.99 million children monthly.
  • Disability Grant (DG): Assisting over 997,000 individuals with disabilities.
  • Social Relief of Distress (SRD) Grant: A temporary COVID-19 response grant that peaked at over 6 million beneficiaries.

Monthly Grant Performance by Type

Each grant type exhibited unique trends throughout the fiscal year. Below are some notable patterns:

Child Support Grant Statistics 2021 (CSG):

  • The Child Support Grant consistently provided assistance to around 12.99 million children each month by March 2021. This grant accounted for roughly 70.5% of all social grants, reinforcing its role as a critical support mechanism for children in low-income families.
  • The slight month-to-month increases reflect ongoing demand, with a high of 12,992,589 beneficiaries recorded in March 2021.

Old Age Grant Statistics 2021 (OAG):

  • The Old Age Grant supported 3.72 million beneficiaries by March 2021, a figure that remained relatively stable throughout the year.
  • This grant represented approximately 20.2% of all SASSA grants, providing essential income for elderly citizens without other income sources.

Disability Grant Statistics 2021 (DG):

  • The Disability Grant saw fluctuations, ending the year with 997,752 beneficiaries. This grant makes up about 5.4% of the total monthly grants, highlighting the substantial demand for disability support amid the pandemic, which posed unique health challenges.

Social Relief of Distress (SRD) Grant Statistics 2021:

  • The SRD Grant, introduced as a temporary measure during COVID-19, reached 6.1 million beneficiaries at its peak in September 2020 before stabilizing around 5.2 million by December 2020.
  • The SRD grant expenditure reached R19.54 billion, underscoring the scale of SASSA’s response to pandemic-related economic hardships.

Regional Distribution of Social Grants

Social grant distribution varied significantly across South Africa’s provinces, reflecting regional socio-economic challenges:

  • KwaZulu-Natal had the highest number of grant recipients, with 2.45 million beneficiaries, followed closely by Gauteng at 1.91 million.
  • The Northern Cape had the lowest number of beneficiaries at 300,707, illustrating disparities in dependency on social grants across provinces.
  • Gauteng saw the largest increase in beneficiary numbers, with an additional 40,961 beneficiaries from April 2020 to March 2021, followed by Limpopo with an increase of 30,554 beneficiaries.

This regional variance highlights how social and economic vulnerabilities are distributed across the country, with provinces like KwaZulu-Natal and Gauteng showing the highest demand due to larger population sizes and higher poverty rates.

Economic Impact and Budget Allocation

For the fiscal year ending in March 2021, the total preliminary expenditure on social grants was R218.96 billion, slightly under the R220.6 billion budget, showing a variance of less than 1%. Here is the breakdown of the expenditure by grant type:

  • Child Support Grant (CSG): Consumed the largest portion of the budget at R85.59 billion, slightly exceeding its allocated budget of R84.88 billion.
  • Old Age Grant (OAG): Accounted for R81.02 billion against a budget of R83.1 billion.
  • Disability Grant (DG): Spent R23.03 billion, under its budget of R24.39 billion.

The COVID-19 SRD Grant alone cost R19.54 billion, highlighting the government’s significant financial commitment to emergency support during the pandemic. This expenditure was essential in cushioning millions of South Africans who lost jobs or income due to lockdowns and other restrictions. You can also check SASSA Social Grant Statistics 2023.

Socio-Economic Impact of Social Grants

SASSA grants play an instrumental role in reducing poverty and maintaining socio-economic stability in South Africa. Key impacts include:

  1. Poverty Alleviation: SASSA’s social grants directly support the country’s poverty reduction efforts, particularly in rural areas where employment opportunities are limited. The Old Age and Child Support grants, in particular, are crucial in households where they may represent the primary or sole income source.
  2. Economic Relief During COVID-19: The SRD grant offered temporary relief for those affected by job losses due to COVID-19. With approximately 6 million beneficiaries at its peak, the SRD grant proved invaluable in preventing severe economic hardship during one of the country’s toughest economic periods.
  3. Regional Support Disparities: The data show higher social grant dependency in provinces with significant rural populations, such as KwaZulu-Natal and Limpopo. This trend underscores the importance of social grants in addressing regional economic disparities.

Future Outlook and Challenges

Despite the successes, SASSA faces challenges in sustaining such high levels of social assistance. The agency’s expenditure has steadily risen, and continued reliance on social grants raises questions about long-term sustainability. Moreover, the need for the SRD grant during the pandemic has sparked discussions around establishing a permanent basic income grant to support South Africans facing ongoing economic challenges.

Efforts to optimize grant distribution and minimize fraud are also ongoing. In recent years, SASSA has improved its systems through biometric verification and other security measures, yet challenges persist in ensuring efficient and fair grant delivery.

Conclusion

The 2020-2021 period underscored the critical role of SASSA’s social grants in supporting millions of South Africans. With 18.44 million grants disbursed monthly by March 2021, SASSA’s impact on poverty alleviation and economic relief is unmistakable. Moving forward, the agency’s ability to adapt to fiscal challenges and explore sustainable social support models will be essential in safeguarding the welfare of South Africa’s vulnerable populations.

Leave a Comment