ID QUESTION TO THE MINISTER OF SOCIAL DEVELOPMENT (FOR WRITTEN RESPONSE)
19 MAY 2010-(1) (a) what is the amount of social grants that are paid in cash and (b) why is payment of social grants made in cash;
LANCE GREYLING, MP
FOR IMMEDIATE RELEASE
NATIONAL ASSEMBLY
QUESTION 790
FOR WRITTEN REPLY
Date of publication on internal question paper: 23 March 2010
Internal question paper no 8
Mr L W Greyling (ID) to ask the Minister of Social Development:
(1) (a) what is the amount of social grants that are paid in cash and (b) why is payment of social grants made in cash;
(2) whether alternatives to cash payment are being considered; if not, why not; if so, what are the relevant details? NW921E
REPLY
(1) The amount of social grants paid in cash (based on March 2010 extractions):
(a) The total social grants budget is R80 billion, of which R56 billion is paid in cash, which equates to 69% of the total social grants.
(b) Social grants are paid in cash because of a number of factors such as the geographical location of the beneficiaries, poverty nodes, the absence of banking infrastructure etc. Historically, the banking infrastructure was only available in urban and semi urban areas and not in rural areas. The Social Assistance Act provides for the beneficiary’s freedom of choice to receive payment either in cash or via a transfer into his or her bank account.
(2) Yes, the South African Social Security Agency (SASSA) is working towards the development of a Social Security Payment Model. Through this model, SASSA seeks to create an environment where beneficiaries will have access to their payments through various payment distribution mechanisms.
The model SASSA envisages does not totally eliminate the current cash payment method. However, it seeks to provide social assistance in an integrated manner, and does not place unreasonable burden on beneficiaries and households and will be flexible.
ENDS...
For media enquiries, please call Steven Otter, ID National Media Officer, on 084 233 3811
FOR IMMEDIATE RELEASE
NATIONAL ASSEMBLY
QUESTION 790
FOR WRITTEN REPLY
Date of publication on internal question paper: 23 March 2010
Internal question paper no 8
Mr L W Greyling (ID) to ask the Minister of Social Development:
(1) (a) what is the amount of social grants that are paid in cash and (b) why is payment of social grants made in cash;
(2) whether alternatives to cash payment are being considered; if not, why not; if so, what are the relevant details? NW921E
REPLY
(1) The amount of social grants paid in cash (based on March 2010 extractions):
(a) The total social grants budget is R80 billion, of which R56 billion is paid in cash, which equates to 69% of the total social grants.
(b) Social grants are paid in cash because of a number of factors such as the geographical location of the beneficiaries, poverty nodes, the absence of banking infrastructure etc. Historically, the banking infrastructure was only available in urban and semi urban areas and not in rural areas. The Social Assistance Act provides for the beneficiary’s freedom of choice to receive payment either in cash or via a transfer into his or her bank account.
(2) Yes, the South African Social Security Agency (SASSA) is working towards the development of a Social Security Payment Model. Through this model, SASSA seeks to create an environment where beneficiaries will have access to their payments through various payment distribution mechanisms.
The model SASSA envisages does not totally eliminate the current cash payment method. However, it seeks to provide social assistance in an integrated manner, and does not place unreasonable burden on beneficiaries and households and will be flexible.
ENDS...
For media enquiries, please call Steven Otter, ID National Media Officer, on 084 233 3811
