SOUTH AFRICA: Old Age Grant Up To R820 A Month

CAPE TOWN (iAfrica.com), February 15, 2006: The maximum old age and disability grant and the care dependency grant will increase by R40 to R820 a month as from April 1, South Africa's Finance Minister Trevor Manuel announced on Wednesday. Manuel said that income support to vulnerable households through social security and social assistance grants "has been the fastest growing category of government expenditure since 2001 and now amounts to R70-billion a year" — or 3.4 percent of GDP "and reaches more than 10 million beneficiaries". Manuel said the 2006 Budget provided for "continuing growth in eligible beneficiary numbers, and social grants will increase in real terms". At the same time the foster care grant will rise by R30 to R590 and the child support grant by R10 to R190 a month. "We are mindful that these amounts are modest in relation to household needs, although alongside education this is the largest programme of expenditure on the Budget. The challenge remains to balance these income support commitments with continued strengthening of expenditure on infrastructure and service delivery," he said. Manuel said further: "Social grants contribute more than half of the income of the poorest 20 percent of households and have doubled in real terms over the past five years." "Recent survey data has provided clear empirical evidence of significant improvements in child nutrition associated with the child support grant, which in turn positively affect cognitive ability and school outcomes." By Donwald Pressly I-Net Bridge