1. SELECT COMMITTEE ON FINANCE – 18 OCTOBER 2005 DEPARTMENT OF SOCIAL SERVICES AND POVERTY ALLEVIATION WESTERN CAPE PROVINCE PRESENTATION BY THE MEC & CFO

2. INTRODUCTION: MEC National priorities Provincial priorities Organisational re-alignment Social Capital Formation Strategy

3. OVERVIEW Departmental growth between 2001/02 and 2004/05 Total:81,42% Social Assistance:89,94% Social Welfare:10,06% Table 4.4 Unspent funds for 2004/05 = R64m (R20m cost centre, R16m Food relief, handling fees)

4. BRANCH: SOCIAL ASSISTANCE Factors which influenced growth between 2001/02 to 2005/06 Introduction of CSG extension Change in policies e.g disability grants Mashishi court case Population growth of 14% (1996 – 2001)

5. BRANCH: SOCIAL ASSISTANCE Budget for 2004/05 amounted to R3 691358 000. Budget for 2005/06 is a conditional grant due to the establishment of SASSA and amounts to R4 238 905 000. Monthly amount of ± R336m (Oct 2005) is paid to beneficiaries in the Western Cape. Transfer payments: R4 002 671 000 Administration: R236 234 000 586 594 beneficiaries (not including children) received their monthly payments for October 2005 through the following pay methods: Banks(79 836) Post Office (Walvis Bay)(213) ALLPAY (515 094) All expenditures are monitored on a monthly basis

6. BRANCH: SOCIAL ASSISTANCE Grant TypeBudget 2005/06 Old Age GrantsR1 526 845 000 War Veterans GrantsR 7 104 000 Disability GrantsR1 391 382 000 Foster Care GrantsR175 840 000 Care Dependency GrantsR70 955 000 Child Support Grant (0-6 yrs)R539 553 000 Child Support Grant (7-14 yrs) R283 372 000 Social Relief of DistressR7 620 000

7. AVERAGE GROWTH IN BENEFICIARY NUMBERS PER FINANCIAL YEAR ( To be paid per month)

8. Old Age Grants Growth from April 2004 to April 2005 Older Persons

9. War Veteran Grants Growth from April 2004 to April 2005 War Veteran grants

10. Grants for the disabled Growth from April 2004 to April 2005 Grants for the disabled

11. Care Dependency Grants Growth from April 2004 to April 2005

12. Foster Child Grants (children) Growth from April 2004 to April 2005 Foster Child Grants

13. Child Support Grant (0-6) Child Support Grant Growth from April 2004 to April 2005

14. Child Support Grant (7-14) Child Support Grant Growth from April 2004 to April 2005

15. BRANCH: SOCIAL ASSISTANCE Progress Report on the implementation of the Agency Development of a comprehensive business plan for the establishment of SASSA in the Western Cape Ring fencing of Social Security Personnel, Assets, Financial Management. Establish SASSA Western Cape Provincial Head Office. SASSA staff establishment structure submitted to the National Department for approval. Efforts underway to obtain office space for SASSA District Offices. Developing agreement for support services to be rendered by the Department of Social Services and Poverty Alleviation. Advertisement of posts for appointment.

16. BRANCH: SOCIAL DEVELOPMENT Social service delivery Factors limiting growth: - Outcrowding due to social assistance - Inflationary increases Results: - Limited increase in funding levels - Not meeting all critical priorities Challenges: -child abuse – reported incidents increased to 62% since 2002. -substance abuse – 50% increase in TIK since 2003 in youth under 20. -HIV / Aids prevalence rate current @ 13,1% (up from 12,5%) -youth – arrest rate averages 2300 per month. -Implementation of financial awards. -Management information -Greater demand for funding

17. BRANCH: SOCIAL DEVELOPMENT Cost Pressures: Affordability of costing model (R180m p.a) Redistribution of resources Day care services for older persons Youth programmes

18. BRANCH: SOCIAL DEVELOPMENT Cost pressures (continue) The bills: -Children's, Older Persons, Child Justice. -ECD infrastructure and capacity building (integrated approach)

19. BRANCH: SOCIAL DEVELOPMENT Social Workers -Number of Social Workers as at 30 September 2005: 337(NGO sector = 600 all levels) -National norm1 : 5000 -Provincial gap approx. 56 (excl. management) -Social Workers salary upgrade: 1 April ’04 -Increased funding to NGO sector for salary increases of social workers

20. DEVELOPMENT AND SUPPORT SERVICES HIV / AIDS (04/05 = R5,8m / 05/06 = R10m) Programmes: Home / Community based programmes Child headed households & orphans

21. DEVELOPMENT AND SUPPORT SERVICES Poverty reduction: IPRS proposes deepened safety nets, participation, democracy and extensive investment in poverty programmes. Unemployment and unemployability School drop-outs and mismatched education Low and unskilled work force Social pathologies

22. DEVELOPMENT AND SUPPORT SERVICES Poverty reduction: Programmes -Food security-sustainability -SMME development -ECD-long term investment

23. DEVELOPMENT AND SUPPORT SERVICES Food Relief Tender not approved during 2004/05 Roll-over of funds to 2005/06 – R16.2m. Approval of 4 service providers – September Plans and systems in place for distribution and support

24. PERSONNEL SPENDING AND NUMBERS Establishment as @ 30 September 2005 Approved establishment:1 684 Contract workers :586 Interns & learnerships:116

25. THANK YOU DANKIE ENKOSI