SUBMISSION TO THE SOCIAL DEVELOPMENT PORTFOLIO COMMITTEE ON THE 2007 FINANCE BUDGET KAREN PETERS DEON RUITERS BLACKSASH ADVOCACY UNIT

INTRODUCTION Making Social Grants Count Extension of grants Child headed households Social workers for the future? Budget spending and litigation Monitoring SASSA Definitions of Poverty for South Africa The Financial and Fiscal Commission concerns

“Need for consistency in approach with respect to all grants” INTRODUCTION Child Support Grants “Need for consistency in approach with respect to all grants” FFC 16 February 2006 Child Support Grant R200 Foster Care Grant R620

How have grant increases been calculated How have grant increases been calculated? Given foreknowledge by SARS and the Treasury - fuel levy - CPIX (weighting of basket of common goods) - Western Cape Provincial Fuel Levy - Basket of common goods average increase (impact on LSM 1-3) - R10 increase in Child Grant and R50 to State Old Age Pension - Is the increase based on the whim of the Minister of Finance, or by rational discourse Fostercare grant vs Child Support Grant- “Need for consistency” FFC - other lack of CSSS issues.

Child headed Households 15 November 2006 services were provided to 5 987 child-headed households STATS SA over 118 564 child headed households in 2005

Social Workers for the Future R365 million bursary scheme Universities can only accommodate 300 to 500 students Training of social auxiliary workers, youth care workers Funding of para-legals Concern: Child Justice Bill B49-2002 probation officers

Budget Spending and Litigation 98.1% spending against budget Unspent funds to be utilized for improvement of grant allocation system CONCERN unspent funds to be used for LITIGATION COSTS How many cases won? How many cases lost?

Monitoring the South African Social Security Agency (SASSA) Does the SASSA MIS include questions of increased access to beneficiaries -over and above issues of financial and other compliance? -where is the focus in evaluating progress - measuring progress. -Are we going to see the roll out to more people within each of the grant categories. SA Social Security Agency costing the taxpayer R4.1 billion per year  

Definition of Poverty ‘Individuals, families and groups in the population can be said to be in poverty when they lack the resources to obtain the types of diet, participate in the activities and have the living conditions which are customary, or at least widely encouraged or approved, in societies to which they belong. Their resources are so seriously below those commanded by the average family or individual that they are in effect excluded from ordinary living patterns, customs and activities.’ (Townsend, 1979, p31).’ ‘The poor shall be taken to mean persons, families and groups of persons whose resources (material, cultural, social) are so limited as to exclude them from the minimum acceptable way of life in the member state in which they live’ (European Union).

What "the new Comprehensive Social Security System" comprises according to the Budget. - Unemployed are unprotected without support - the same people fall through the cracks - "Self reliance" Comparison BOLSA Familia in Brazil decreased poverty by 19% (proper work programmes)

"Social Cohesion and Solidarity" - which tax instruments benefited the poor, given that there have been huge gains for business (and upper and middle income earners) - e.g. abolition secondary company tax; retirement fund tax Under current tax brackets, propose relief to income earners (Written off tax = R 8.4 billion) - p.23 Budget Speech Support People's Budget Campaign to decrease VAT in solidarity with the poor that will effectively increase (minimally) their disposable monthly income. % spent on taxed consumables by the poor.

The Financial and Fiscal Commission concerns FFC Recommendation : “there is a need for consistency in approach with respect to all grants as to the appropriate determination of ceilings for the use of portion of the grants for acquiring capacity, administration and set-up costs.” FFC Recommendation “government revise the estimated cost of basic services (R130) per poor household per month as it is not sufficiently close to the true cost of providing basic services across a range of municipalities. The commission proposes that government consider raising the estimated cost to R175. This would help ensure that grant allocations are directed towards enhancing the ability of poor municipalities to carry out their constitutional mandate”.

SUBMISSION TO THE SOCIAL DEVELOPMENT PORTFOLIO COMMITTEE ON THE 2007 FINANCE BUDGET KAREN PETERS DEON RUITERS BLACKSASH ADVOCACY UNIT