The North West Legislature Portfolio Committee on Health and Social Development has raised concerns about the growing number of social grant beneficiaries choosing to receive their payments through personal bank accounts — a decision that could erode the value of their grants due to associated bank charges.
This concern was highlighted during an oversight meeting held with the South African Social Security Agency (SASSA) and the Department of Social Development. According to SASSA, 43,945 grant recipients have opted for direct bank payments, bypassing both the traditional SASSA Gold Cards and the newer Postbank Black Cards. The Committee, led by the Chairperson, Hon. Karabo Magagane, felt that the move to personal bank accounts could have unintended consequences. "These beneficiaries may not realize that they are losing money to transaction fees and service charges — funds that are meant to support their most basic needs," she said.
The meeting was called to receive an update on the ongoing migration from SASSA Gold Cards to Postbank Black Cards — a process initiated by the South African Reserve Bank (SARB) following a security breach that affected the older card system.
Beneficiaries were initially given until 31 May 2025 to transition to the new cards. However, Committee members were informed that SARB has since suspended the migration process with immediate effect. Despite this, beneficiaries still have the option to apply for payments via their own bank accounts or Postbank Black Cards.
In a significant policy clarification, the Committee was told that contrary to earlier communications, the SASSA Gold Cards will remain valid beyond the 31 May deadline, until further notice from the relevant authorities.
"People were rushing to switch cards, some even under pressure. Now, they need clarity and reassurance that their current cards are still functional. You need to ensure that this is communicated widely,” said Hon. Magagane.
Committee members also expressed alarm at additional informal costs being borne by grant recipients. Local tuck shops reportedly charge R10 for every R100 withdrawn — a surcharge that further reduces the amount of money recipients actually receive. “This completely defeats the purpose of a social grant. A grant is supposed to alleviate poverty, not get eaten up by unnecessary charges,” said one Committee Member.
Adding to the logistical woes, the Committee criticised the limited availability of Postbank conversion sites in the province. Currently, only 12 sites are operational across the entire North West — a number the Committee described as "grossly inadequate."
"Many of our elderly citizens live far from these centres and are not in a position to travel long distances just to access a card. This could be a driving factor behind the shift to personal bank accounts," said Hon. Magagane.
In response to the challenges raised, the Committee pledged continued engagement with the two State-Owned Entities (SOEs) involved in grant disbursement — SASSA under the Department of Social Development, and Postbank under the Department of Communications.
"We are committed to ensuring that no beneficiary is left behind. We will push for ongoing awareness campaigns, improved accessibility, and sustained outreach efforts so that every grant recipient understands their options and the implications of each," said Hon. Magagane.
The Committee is expected to meet again in a few weeks to follow up on implementation plans and progress made in addressing these critical issues.
Enquiries
Namhla Luhabe
Deputy Manager - Communications
Cell: 079 527 0628
E-mail: namhla@nwpl.org.za
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