DA wants to increase child support grant by 30%

The DA wants the child support grant to be increased from R480 to R624 a month to match the food poverty line, and in support of the department of social development’s findings that the grant is insufficient to protect the poorest children from hunger, malnutrition and stunting.

According to the March 2023 household affordability index, the child support grant of R480 is 28% below the food poverty line of R663, and 45% below the average R874.71 cost of a basic nutritious diet for a child.

The proposed increase will help cushion the most vulnerable children against an underperforming economy, high unemployment and rising inflation, the party says.

The proposals, contained in the DA social policy document released on Monday, come less than 15 months before the 2024 general elections, in which the DA is hoping to wrest power from the ANC with the “moon pact” coalition.

The party also proposed that the age limit on the child grant be scrapped to ensure that beneficiaries remain eligible until they have completed high school.

“The termination of the grant can disrupt the financial stability of households, especially when adult learners are still in school and have not yet completed secondary education,” the party said in its social policy document. The child support grant, set to be increased to R510 in October as announced in the budget, supports at least 13-million children up to the age of 18.

The increases proposed by the DA could have financial implications for an already constrained fiscus, of which 70% is allocated to social welfare including disability grants, oldage grants and the R350 Covid19 social relief of distress grant due to end in March 2024.

The proposed increases in the child support grant would result in an 18% increase in allocation from R81.9bn in 2023/24 to R97bn.

“If you look at the overall cost of corruption and you consolidate that amount then you can arrive at a considerable amount of savings,” the DA’s head of policy, Matthew Cuthbert, told Business Day when questioned about funding for the proposed increases. Social grants are the second-most important source of income for most SA households behind salaries, and are the main source of income for nearly a quarter of households.

Civil society groups and social development minister Lindiwe Zulu have been clamouring for a basic income grant. The National Treasury has been looking at the possibilities.

The DA does not rule out a universal income grant, but questions its viability considering the constrained fiscus. However, the party has not taken a definitive stance.

“It is politically impossible to take away the grant but we should not make people reliant on grants,” Cuthbert said.

“The DA will look into using cash transfers instead of providing certain free services like electricity, water, housing, and health services.

“Instead of the government directly providing these services, they would give people money so they can choose and pay for the specific services they need most urgently,” the party said in its policy document.

Other proposals include extending the grant to pregnant mothers and extending the basket of basic food items that are exempt from VAT.

“This is to see if there are any other food items that are not currently exempt, but could be considered for exemption ... The goal is to provide poor and lowincome families with some relief by reducing [their] taxes.”

Political analyst Ntsikelelo Breakfast dismissed the proposal to increase the child grant as an election gimmick. “If you [look] at the ideological posture of the DA, it stands for neoliberalism meaning the market forces must do as they please, but this policy comes across as if the DA is advocating for a welfare system ... they are just using this to garner votes.”