Right now in the country, there are more than 25 million people who receive some form of income support. In addition, around two million indigent households receive free basic water, free basic electricity and free solid waste removal.
Around 60% of the budget is spent on what is known as the social wage, providing various forms of support, basic services and assistance to households and individuals to combat poverty and hunger.
Social Relief of Distress (SRD) Grant
In support of this work and to counter the rising cost of living, government will continue the SRD Grant, which currently reaches around 7.8 million people. It will ensure that existing social grants are increased to cushion the poor against rising inflation. This will be set out in the budget by the Minister of Finance.
Work is underway to develop a mechanism for targeted basic income support for the most vulnerable, within fiscal constraints. This will build on the innovation government has introduced through the SRD Grant, including linking the data that it has across government to make sure it reaches all those who are in need.
“National Treasury is considering the feasibility of urgent measures to mitigate the impact of load-shedding on food prices.” – President Cyril Ramaphosa, SoNA, 9 February 2023, Cape Town City Hall
Title deeds for subsidised houses
This year, government will take steps to unlock massive value for poor households by expediting the provision of title deeds for subsidised houses. The current backlog in processing title deeds is over one million houses, which amounts to an estimated R242 billion in assets that should be in the hands of South Africa’s poorest households. Government will focus not just on eradicating this backlog, but on making the title deed system more effective and more accessible.
As government undertook in the SoNA last year, the Department of Public Works and Infrastructure has finalised the transfer of 14 000 hectares of state land for housing.
Source: State of the Nation Address Highlights [PDF]