Sassa Underspends R4 Billion on SRD Grants Due to Stricter Means Test

The Social Relief of Distress (SRD) grant, a lifeline for millions of South Africans struggling to make ends meet, is facing a significant shortfall due to a stricter means test implemented by the Social Security Agency of South Africa (Sassa).

In a recent audit, the Auditor-General revealed that Sassa underspent a staggering R4 billion on the SRD grants during the 2022/23 financial year.

The primary reason for this underspending was a decline in the number of beneficiaries who qualified for the grant under the new, more stringent criteria.

The stricter means test, which was introduced to ensure that the grant is only received by those who truly need it, has inadvertently left thousands of vulnerable individuals without the financial support they desperately require.

Many beneficiaries who previously qualified for the grant have found themselves disqualified due to minor changes in their income or circumstances.

Critics argue that the stricter means test has created a barrier to accessing the SRD grant, particularly for those who may be struggling to document their income or who may have irregular or seasonal work.

This has led to increased frustration and desperation among the affected beneficiaries.

In addition to the financial impact, the underspending has also had a negative effect on Sassa’s service delivery.

The agency has been overwhelmed by a surge in inquiries and complaints from beneficiaries who have been denied the grant or who are facing difficulties in accessing it.

While Sassa has acknowledged the challenges posed by the stricter means test, it has maintained that the new criteria are necessary to ensure the sustainability of the SRD grant program.

However, many advocates for social justice argue that the agency needs to find a way to balance the need for fiscal responsibility with the imperative of providing essential support to vulnerable South Africans.

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