Ramaphosa says basic income support is on the cards

The government has announced the establishment of basic income support to cushion the poor against the rising cost of living while it seeks ways to mitigate the impact of load-shedding on food prices.

President Cyril Ramaphosa announced during his state of the nation address on Thursday that work is under way to develop a mechanism for targeted basic income support for the most vulnerable, within the country’s fiscal constraints.

This, according to Ramaphosa, will build on the innovation government has introduced through the social distress grants, including linking the data across government departments to make sure all those in need are reached.

Ramaphosa also announced the government would continue rolling out the R350 social distress grant introduced during the Covid-19 pandemic. 

“In support of this work and to counter the rising cost of living, we will continue the social relief of distress grant, which currently reaches around 7.8 million people. We will ensure that existing social grants are increased to cushion the poor against rising inflation,” he said.

This will be set out in the budget by the minister of finance while the National Treasury considers the feasibility of urgent measures to mitigate the impact of load-shedding on food prices.

Ramaphosa said the rising cost of living is deepening poverty and inequality.

“Millions of South Africans are unable to provide for themselves and their families. It is the job of the state to provide a minimum level of protection below which no South African will fall.

“Right now in our country, there are more than 25-million people who receive some form of income support, about two million indigent households receive free basic water, free basic electricity and free solid waste removal,” he said. 

Ramaphosa added that about 60% of his government’s budget is spent on what is known “as the social wage” by providing various forms of support, basic services and assistance to households and individuals to combat poverty and hunger.

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