Budget Speech: Government’s proposed old age grant increase

Social grant beneficiaries, especially those receiving old age grants, were waiting with bated breath to find out how much their grants would increase.

The increases were expected to be announced by Finance Minister Enoch Godongwana when he tabled the National Budget Speech in Cape Town on Wednesday, 19 February. However, the speech was postponed at the 11th hour over disagreements about the proposed two percentage point VAT increase.

THE PROPOSED OLD AGE GRANT INCREASE

In his speech, Godongwana intended to announce that National Treasury would inject a massive R23.3 billion into the social grants and welfare programmes that support almost half of South Africa’s population, Independent Online reported.

The increase was reportedly aimed at shielding millions of social welfare beneficiaries from the proposed VAT increase.

“Spending on social grants is allocated an additional R23.3 billion. This is to ensure that low-income households are not left worse off by the increase to the VAT rate,” Godongwana intended to say on Wednesday.

The government’s old age grant was set to increase by R150 throughout the year, with an immediate R140 increase in April and an additional R10 increase in October, while the child support grant would have increased by R50.

It is not yet clear if Godongwana will table different figures when he delivers the Budget Speech on 12 March. However, this is how much social grant beneficiaries would get monthly should he table the same figures:

• Old age grant increases by R140 on 1 April and R10 in October 2025
• Child Support Grant increases from R530 to R580
• Foster care grant increases by R80
• Covid-19 Social Relief of Distress Grant – Remains at R370

In the 2024 Budget Speech, Godongwana said work was underway to improve the COVID-19 SRD by April 2024. He said the National Treasury will work with the Department of Social Development to ensure that improvements in this grant are captured in the final regulations.

“These improvements will be within the current fiscal framework. For the extension of the grant beyond March 2025, the social security policy reforms, together with the funding source, will be finalised,” he said at the time.

Eventually, the SRD grant was increased by R20 to R370.

The Finance Minister was also set to announce the extension of the SRD grant to March 2026.

DO YOU THINK THE PROPOSED OLD AGE GRANT INCREASES WOULD CHANGE WHEN THE MINISTER TABLES THE NEW BUDGET?

Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.

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